French Payroll Tax (Taxe sur les Salaires) 2026: Rates, Calculation & Filing

The taxe sur les salaires is a French payroll tax that is little known among business owners — and for good reason: it only affects a very specific category of employers — those who are not subject to VAT, or only partially so. This specificity makes it a particularly important tax for associations, credit institutions, foundations, and certain healthcare professionals.

In 2026, the rates and rules remain identical to 2025, with a progressive three-bracket scale and an annual allowance applicable to small employers.

This guide explains everything about the taxe sur les salaires: who owes it, how to calculate it, how to declare it, and what exemptions exist.

Link with VAT

The taxe sur les salaires is the "counterpart" of non-liability to VAT. The legal principle is as follows (CGI art. 231):

Employers who are not liable for VAT, or who have not been liable on at least 90% of their previous year's revenue, are subject to the taxe sur les salaires.

In other words:

• A company subject to 100% VAT is not liable for the taxe sur les salaires;
• A company completely exempt from VAT is fully liable;
• A company with a mixed VAT ratio is liable proportionally to the portion not subject to VAT.

Who Is Mainly Affected?

The main employers subject to the tax:

• Associations and foundations (without predominant commercial activity);
• Credit institutions and insurance companies (partially or fully VAT-exempt);
• Doctors, dentists, nurses and other healthcare professionals practising in private practice;
• Hospitals, clinics, nursing homes (EHPAD) and medico-social structures;
• Certain holding companies and investment companies whose revenues consist primarily of dividends (not subject to VAT).

The taxe sur les salaires is calculated on gross remuneration paid (salaries + benefits in kind + bonuses), according to a progressive three-bracket scale:

The calculation is made per employee (not on total payroll).

Overseas territories surcharge: Higher rates apply in French overseas departments (Martinique, Guadeloupe, Reunion): standard rate increased to 2.95%, 6% and 9.40%.

Calculation Example

An employee receives annual gross remuneration of 30,000 euros:

• On the first 9,586 euros: 9,586 × 4.25% = 407.41 €
• On the 9,586 € to 19,172 € bracket (i.e., 9,586 €): 9,586 × 8.50% = 814.81 €
• On the portion above 19,172 € (i.e., 10,828 €): 10,828 × 13.60% = 1,472.61 €
• Total taxe sur les salaires for this employee: 2,694.83 €

For an employer 50% liable (mixed VAT ratio), the amount would be 2,694.83 € × 50% = 1,347.42 €.

When an employer carries out both VAT-taxable and VAT-exempt operations, the taxe sur les salaires is due proportionally:

Liability ratio = (revenue not subject to VAT / total revenue) × 100

This ratio is calculated based on the revenue (or receipts) of the previous calendar year. The remuneration paid is then multiplied by this ratio to determine the taxable payroll base.

Employers whose annual taxe sur les salaires does not exceed the allowance threshold benefit from a reduction in their tax liability:

Important: In 2026, the special allowance is 21,044 euros for associations recognized as being of public utility and certain general-interest bodies. This specific allowance allows many small associations to be completely exempt from the taxe sur les salaires.

Based on the Size of the Payroll

Declaration Form 2502

The annual regularization declaration no. 2502 must be filed no later than 15 January of the following year. It summarizes all remuneration paid during the year and allows regularization of any differences between provisional payments and the final tax due.

Permanent Total Exemptions

Certain employers are completely exempt from the taxe sur les salaires, regardless of their VAT status:

• Local authorities and their groupings;
• Public educational establishments;
• Employers whose annual tax amount is less than 1,200 euros (allowance).

Exemption for Associations

Associations (under the 1901 Law) recognized as being of public utility benefit from a special allowance of 21,044 euros on the taxe sur les salaires due. For small associations with few employees, this allowance can cover the entire tax liability.

Note: Associations that carry out commercial activities (subject to VAT) have their liability calculated proportionally, which can significantly reduce their taxable base.

• The taxe sur les salaires is owed by employers who are not or only partially subject to VAT;
• The scale is progressive: 4.25% / 8.50% / 13.60% per individual remuneration brackets;
• An allowance of 1,200 euros fully exempts very small employers;
• Associations benefit from a special allowance of 21,044 euros;
• Declaration no. 2502 must be filed no later than 15 January each year.

(Sources: impots.gouv.fr taxe sur les salaires, BOFiP, Service-Public.fr, Legifrance CGI art. 231)