Flat tax 2026: rate, calculation and options
How the 2026 French flat tax works on dividends, interest and capital gains, and when the progressive scale may be better.
Expert note: This article was written by our chartered accountancy firm. Information is current as of 2026. For a personalised review of your situation, contact us.
Flat tax 2026: rate, calculation and options
Updated March 2026 - The French flat tax, or PFU, generally applies at 30% to many capital income flows:
- ▸12.8% income tax
- ▸17.2% social levies
It typically applies to dividends, interest and many securities gains.
Why 30% is not always the full story
For higher-income households, the final cost can exceed 30% when other contributions apply. That is why a dividend decision should never be made in isolation.
When the progressive scale may be better
The progressive income tax option may be attractive if your marginal rate is moderate and if dividend-specific rules work in your favor. But the option is global for the relevant income category.
See also dividends vs salary, how to reduce flat tax legally and PUMA tax 2026.
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Conclusion
The flat tax remains simple, but not always optimal. Once dividend amounts become meaningful, a full tax and social review is worth it.
Want to know whether PFU is really the best option for you?
We can model the decision with your actual figures.
Article written by Samuel HAYOT
Chartered Accountant, registered with the Institute of Chartered Accountants.
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