Actual expenses vs 10% allowance: how to make the right choice in 2026?

Every year, millions of taxpayers file their income tax returns without asking a decisive question: the flat-rate 10% allowance applies automatically to your salaries, but it is not always the most advantageous option. Opting for actual expenses can significantly reduce your tax base and therefore your income tax. The key is knowing when, how, and for whom this option is relevant. This guide gives you all the tools to make the right choice in 2026.

The flat-rate 10% allowance is the standard mechanism provided by the French Tax Code. It applies automatically to all employees on their income declared in box 1AK (declarant 1) or 1BK (declarant 2) of the 2042 tax return.

The 2026 caps

For the taxation of 2025 income (return filed in spring 2026):

• ▸Maximum cap: 14,426 euros per tax household declarant
• ▸Minimum floor: 504 euros
• ▸The allowance applies per declarant, not per household

The option for actual expenses is open to all employees. It is governed by Article 83 of the French General Tax Code (CGI) and detailed by the BOFiP (official tax doctrine). It allows deduction of professional expenses actually incurred, provided they are required by the profession, not reimbursed by the employer, and supported by documentary evidence.

Main deductible categories

• ▸Commuting costs: public transport subscriptions or mileage allowance (official scale)
• ▸Dual residence costs: when professionally required
• ▸Meals at work: excess over home meal value
• ▸Professional training not covered by employer
• ▸IT equipment and professional subscriptions

The principle is straightforward: if your total actual professional expenses exceed the flat-rate 10% allowance amount, the option is favorable.

Advantage condition: Actual expenses total > (Gross salary x 10%) capped at 14,426 euros

• ▸High salary with few expenses (close to the cap)
• ▸Full or near-full remote working
• ▸Self-employed workers (TNS) under BIC/BNC regimes — they deduct costs directly from business income
• ▸Risk of increased tax audit scrutiny without solid documentation

• ▸Deducting expenses already reimbursed by employer
• ▸Using the wrong mileage scale (check the 2026 official scale)
• ▸Failing to keep supporting documents for 3 years
• ▸Confusing professional expenses with other income deductions

The choice between the 10% allowance and actual expenses is a tax decision that can represent hundreds or even thousands of euros in annual income tax savings. SASU directors receiving manager compensation can opt for actual expenses. Self-employed TNS workers are not concerned by this choice.

Book an appointment with a tax expert

What is the cap for the 10% allowance in 2026?

For the 2025 income return filed in 2026, the flat-rate 10% allowance is capped at 14,426 euros per declarant. The floor is 504 euros. This cap is adjusted annually based on consumer price index changes.

Can a SASU director opt for actual expenses?

Yes. A SASU president treated as an assimilated employee can opt for actual expenses on their manager compensation declared in box 1AK. They can deduct travel, training and equipment costs not reimbursed by the company. Expenses covered by the SASU must not be included.

What expenses are deductible as actual expenses?

Deductible items include: mileage costs (official scale), dual residence costs, work meals (portion exceeding home meal value), employer-uncovered training, IT equipment for professional use, and professional subscriptions. Each item must be supported by documentary evidence.