French micro-entrepreneur 2026: thresholds, contributions and rules

Up to date as of 14 May 2026. France's micro-entrepreneur regime (formerly auto-entrepreneur) is the most widely used self-employment status in the country, with more than four million active micro-entrepreneurs. Its apparent simplicity conceals a precise legal framework: revenue ceilings, flat-rate social contribution rates, VAT exemption conditions, and rules for switching to the standard real-income regime. In 2026, the applicable thresholds stem from the triennial update of 2023 and remain unchanged — a new upward revision was expected in 2026 (to be confirmed by decree). Cabinet Hayot Expertise, chartered accountants in Paris, sets out the rules every independent professional should know before choosing or keeping this status.

In brief. The micro-BIC selling threshold stands at EUR 188,700 of annual revenue, while the micro-BIC services and micro-BNC threshold stands at EUR 77,700. URSSAF social contributions are calculated at flat rates applied to receipts. VAT exemption applies automatically up to EUR 91,900 for goods and EUR 36,800 for services. Exceeding these VAT thresholds typically happens before the micro regime ceiling is reached — this is the first critical point for a growing independent professional based in Paris.

Since Law n° 2022-172 of 14 February 2022, every sole trader (entrepreneur individuel, EI) automatically benefits from the separation of their professional estate from their personal assets, codified at article L526-22 of the French Commercial Code. A micro-entrepreneur is an EI — not a company, without separate legal personality — but their professional estate is automatically shielded from seizure by professional creditors. This protection requires no additional formality.

The relevant tax provisions are distributed as follows:

• CGI article 50-0: micro-BIC regime (goods sales, accommodation, commercial services)
• CGI article 102 ter: micro-BNC regime (liberal professions, non-commercial activities)
• CGI article 64 bis: micro-BA regime (agricultural profits)
• CGI article 293 B: VAT exemption (franchise en base)
• CGI article 151-0: liberatory income tax payment
• CSS article L613-1: micro-social regime (flat-rate contribution rates)

Summary table#

Thresholds derive from the triennial update of 2023 (Decree n° 2022-1761 of 30 December 2022). The next triennial revision was expected in 2026 — the definitive amounts must be confirmed following publication of the applicable decree.

The higher threshold: a one-year grace period#

When revenue exceeds the standard ceiling for the first time in a calendar year, the micro-entrepreneur retains the regime for that year provided revenue stays below the higher threshold. The switch to the real-income regime only becomes effective if the excess persists for two consecutive years.

This mechanism prevents a forced exit due to a one-off activity peak. However, it does not protect against losing VAT exemption, which takes effect from the first month following the breach of the VAT threshold.

Mixed activities: goods and services#

A micro-entrepreneur running both a goods-selling and a service activity must comply with both thresholds simultaneously: total revenue below EUR 188,700 AND service revenue below EUR 77,700. Breaching either condition triggers exit from the regime.

The micro-tax regime replaces actual deduction of expenses with a flat-rate allowance applied to annual revenue. The resulting taxable income is added to the household's income and taxed under the progressive IR schedule, unless the liberatory payment option has been elected.

Our reading. The flat-rate allowance is advantageous when actual expenses are lower than the allowance rate. A Paris-based BNC freelancer with minimal overhead benefits from a taxable base of only 66% of revenue — a lower effective tax charge than under actual-expense accounting with few deductions. Conversely, a craftsperson whose raw-material purchases represent 60% of revenue will regularly be worse off under micro-BIC, and should model the real-income regime. Cabinet Hayot Expertise carries out this comparison as a standard step in every business creation review in Paris.

Provided at article 151-0 of the CGI, the liberatory payment allows the micro-entrepreneur to settle income tax and social contributions in a single declaration, by applying flat cumulative rates to receipts.

Eligibility conditions#

The option is available to micro-entrepreneurs whose household's reference taxable income (RFR) for year N-2 does not exceed the ceiling for the third bracket of the progressive IR schedule, multiplied by the number of household tax shares (the precise 2026 ceiling must be confirmed following publication). In practice, the option is most beneficial for households subject to a higher marginal tax rate.

Combined rates (contributions and liberatory IR)#

Trade-off. The liberatory payment is mechanically advantageous for a household with a marginal IR rate of 30% or above. For a start-up micro-entrepreneur whose household is lightly taxed, the option provides no fiscal benefit and may even be counterproductive. Cabinet Hayot Expertise recommends modelling both scenarios before making the election.

Flat-rate contribution rates for 2026#

The micro-social regime (CSS article L613-1) subjects the micro-entrepreneur to social contributions calculated by applying flat rates to receipts collected, without reference to actual expenses.

These rates cover sickness-maternity, basic pension, supplementary pension, disability-death insurance, family allowances, and CSG-CRDS. A vocational training contribution (CFP) is charged in addition: 0.1% for retailers, 0.2% for craftspeople and liberal professions.

The underestimated risk. Micro-social rates apply to gross revenue regardless of actual profitability. A micro-entrepreneur whose costs increase — subcontracting, materials, equipment — continues paying contributions on a revenue figure that no longer reflects real earnings. Switching to the real-income regime means contributions are calculated on actual profit, which is frequently the primary operational reason for leaving the micro regime.

Reporting and payment#

Contributions are declared and paid monthly or quarterly via the autoentrepreneur.urssaf.fr portal. There is no annual adjustment: failure to file triggers a fixed penalty contribution. Regular filing is also a condition for validating pension entitlement quarters.

ACRE: reduced contributions in year one#

The business start-up relief (ACRE, CSS article L131-6-4, Decree n° 2019-1215 of 20 November 2019) entitles eligible micro-entrepreneurs to reduced contribution rates during the first twelve months of activity. The relief covers standard contributions (excluding CSG-CRDS). ACRE is granted on application to URSSAF at registration, subject to conditions: no previous ACRE benefit in the preceding three years, and at least one eligibility criterion (registered jobseeker, RSA recipient, etc.).

The franchise en base de TVA (CGI article 293 B) applies automatically to micro-entrepreneurs whose revenue does not exceed:

• EUR 91,900 for goods sales and accommodation (to confirm)
• EUR 36,800 for services and BNC activities (to confirm)

Below these thresholds, the micro-entrepreneur does not charge VAT and cannot recover it. Every invoice must carry the statement: "TVA non applicable — art. 293 B du CGI."

In practice. The VAT exemption threshold is often crossed well before the micro regime ceiling. A Paris-based freelance consultant billing EUR 4,000 per month crosses the services VAT threshold (EUR 36,800) within ten months, without leaving the micro-fiscal regime (ceiling EUR 77,700). This decoupling is frequently overlooked at registration, leading to VAT arrears, penalties, and the need to correct invoices issued to clients.

For a detailed analysis of how VAT exemption works, see our article on the VAT exemption regime: thresholds and conditions.

Employed, student or civil servant#

An employee may combine salaried employment with micro-entrepreneur status, subject to any exclusivity clause in their employment contract and the duty of loyalty to the employer. No specific revenue cap applies to this combination — standard micro rules govern. Micro-entrepreneur income is added to wages for income tax purposes.

Active retiree#

A retiree may operate as a micro-entrepreneur. Following pension reform changes, social contributions paid under the micro-entrepreneur regime generate additional supplementary pension rights, subject to each pension fund's specific rules.

Job-seeker: combining ARE unemployment benefit and micro-entrepreneur income#

An unemployed person receiving ARE compensation from France Travail may combine this allowance with micro-entrepreneur income under France Travail rules. The ARE amount is recalculated monthly based on declared revenue. The precise calculation depends on the remaining entitlement period and must be confirmed with France Travail.

Several sectors are explicitly excluded:

• Regulated liberal professions not affiliated with CIPAV: doctors, pharmacists, lawyers (avocats), notaires, architects, chartered accountants — their mandatory social protection is managed by dedicated pension funds (CARMF, CNBF, etc.) incompatible with the SSI micro-social scheme
• Estate agents and property managers: governed by the Hoguet law, they must hold a professional card and operate under a specific regulated framework
• Tobacco retailers: regulated status incompatible with the micro regime
• Furnished letting operators: potentially accessible under micro-BIC for non-professional letting if revenue stays within applicable ceilings, but LMNP/LMP classification rules must be verified on a case-by-case basis
• Companies: the micro regime is strictly reserved for sole traders — any incorporation (SARL, SAS, EURL, SASU) means leaving the micro regime

Cabinet Hayot Expertise in Paris systematically checks sector eligibility before any registration. Registering under the micro regime for an excluded activity leads to URSSAF adjustments and tax reassessments.

One of the practical advantages of the micro regime is the simplicity of accounting requirements (CGI article 50-0):

• Revenue daybook (livre des recettes): kept chronologically, recording for each receipt the date, amount, client identity, and nature of income. A regularly maintained spreadsheet is legally sufficient, provided it is retained for six years.
• Purchase register: required only for goods-selling and accommodation activities.
• No balance sheet or profit-and-loss account is required — the main practical difference from the real-income simplified regime.

What to watch. The absence of formal accounting does not mean the absence of tax risk. An URSSAF audit or tax inspection will check the consistency between declared receipts and bank movements. Maintaining a dedicated business bank account (mandatory if revenue exceeds EUR 10,000 for two consecutive years) and retaining all purchase invoices are essential practices in every file that Cabinet Hayot Expertise handles.

Situation: IT consultant based in Paris, EUR 65,000 annual receipts, low overhead (SaaS subscriptions, travel).

Applicable regime: micro-BNC (CGI article 102 ter), EUR 77,700 ceiling respected. However, the VAT threshold for services (EUR 36,800) has been exceeded since the first half of the year — VAT is due.

Indicative calculation:

• Taxable income for IR: EUR 65,000 x 34% (BNC allowance) = EUR 22,100
• URSSAF contributions: EUR 65,000 x 21.1% = approx. EUR 13,715 (to confirm)
• IR calculated on EUR 22,100 added to other household income at the progressive rate

Cabinet Hayot Expertise recommendation: at this revenue level, the real-income regime should be modelled. If actual expenses (training, equipment, subcontracting) exceed 34% of revenue — common during growth — the real regime becomes favourable. Since VAT is already due, the additional complexity of the real-income regime for IR and contribution purposes is limited.

Situation: self-employed painter based in Paris, EUR 175,000 revenue (services and materials supplied), mixed activity.

Micro regime: revenue below EUR 188,700 — micro-BIC goods technically available. However, the VAT threshold (EUR 91,900 for goods) is significantly exceeded — VAT is due. Materials purchases represent approximately 55% of revenue (EUR 96,250).

Our reading: the 71% micro-BIC allowance implies deducting EUR 124,250 from a revenue of EUR 175,000, while actual materials costs amount to EUR 96,250 — so the allowance is on paper more generous. However, under the real-income regime, the craftsperson could additionally deduct actual social contributions, vehicle expenses, professional premises costs, and equipment depreciation, potentially reducing the taxable base below 29% of revenue. Cabinet Hayot Expertise recommends modelling both scenarios precisely before deciding — since VAT is already due, the real regime adds complexity only on the IR and contribution side.

Exceeding the ceilings: two consecutive years#

Exit is automatic when revenue exceeds the standard ceiling for two consecutive calendar years. The switch to the real-income simplified regime takes effect on 1 January of the following year.

In the first year of excess, if revenue stays below the higher threshold, the micro regime is maintained. If revenue exceeds the higher threshold in the first year itself, the switch takes effect from the first day of the month of excess.

Voluntary election of the real-income regime#

Any micro-entrepreneur may voluntarily elect the real-income regime without waiting to exceed the ceilings. The election must be made before 1 February of the relevant tax year, or within the deadline for filing the first professional declaration. It is irrevocable for two years.

What the tax administration examines. When switching to the real-income regime, the tax administration may check the consistency between receipts declared under the micro regime and the first real-regime financial statements. A significant discrepancy — undeclared receipts, prior invoices not accounted for — may trigger a reassessment. Preparing the accounting transition carefully is a step that Cabinet Hayot Expertise systematically handles for clients based in Paris.

The micro-entrepreneur regime is well-suited to business start-up or low-overhead complementary activities. It becomes inappropriate — and fiscally disadvantageous — in several common situations:

1. Actual expenses exceed the flat allowances: a 50% or 34% allowance may be insufficient for activities involving subcontracting, significant travel, or equipment costs.
2. Revenue approaching the VAT threshold: VAT exemption disappears well before the micro ceiling — managing VAT adds complexity that the micro regime no longer simplifies.
3. Need for financial statements for financing: banks and commercial landlords require financial accounts that the micro regime does not produce.
4. Plans to bring in partners or scale up: any incorporation means leaving the micro regime.

For business creators in Paris, a systematic comparison of micro, real-income EI, EURL and SASU is the first task Cabinet Hayot Expertise carries out during an initial creation review. Contact us via our business creation Paris — Cabinet Hayot Expertise page for a first discussion of your situation.

For more technical tax questions, our French tax advisory service in Paris and chartered accountant Paris 8 complete the offering.

See also: legal obligations for business creation | VAT exemption regime: thresholds and conditions | family SARL or SCI: patrimonial structure choice

This article is provided for general information purposes only. It does not replace a personalised analysis of your situation by a chartered accountant. Contact Cabinet Hayot Expertise for any specific case.