Social levies
Social levies are mandatory contributions assessed in France on investment and asset income. They total 17.2% and are composed mainly of the CSG (9.2%), CRDS (0.5%), solidarity levy (7.5%), and ancillary contributions. They apply notably to rental income, real-estate capital gains, and investment income.
Key points
- Overall rate of 17.2% since 2018, comprising CSG (9.2%), CRDS (0.5%), and solidarity levy (7.5%).
- Layered on top of income tax (or corporate tax for companies) — not interchangeable.
- CSG is partially deductible from taxable income: 6.8% on rental income and certain investment income.
- Applicable to EU non-residents on certain French-source income (subject to specific rules).
- On real-estate capital gains, they apply after holding-period allowances.
Frequently asked questions
Are social levies stacked on top of income tax or the flat tax?
Yes, social levies are always stacked on top of income tax. The 30% flat tax (PFU) already includes the 17.2% social levies plus 12.8% income tax. On rental income subject to the progressive scale, the 17.2% is added on top of the taxpayer's marginal income-tax rate.
How does the partial CSG deductibility work in practice?
On income subject to the progressive scale — rental income in particular — 6.8 percentage points of CSG are deductible from the following year's taxable income. This deduction mechanically reduces the income-tax base, slightly lowering the overall tax burden. It does not apply to income subject to the PFU flat tax.
Why do social levies apply to real-estate capital gains as well?
The legislature treats real-estate capital gains as asset income, on the same footing as rents. The 17.2% therefore applies to the net taxable gain (after holding-period allowances), in addition to income tax at the flat rate of 19%, bringing total taxation to 36.2% before any exceptional allowance.
In practice
Luc sells an apartment with a net taxable gain of €40,000 (after allowances). He pays 19% income tax (€7,600) and 17.2% social levies (€6,880), for a total charge of €14,480 on the gain. His broker reminds him that these levies apply regardless of his marginal income-tax rate.
Official sources
- Social levies on asset income · Service-Public.gouv.fr
- Housing and financing information · ANIL
- Mortgage credit (official guide) · Service-Public.gouv.fr