Exemption from the 12.8% % levy: income thresholds and November 30th deadline

You can ask your financial institution not to withhold the 12.8% tax on your interest and dividends if your household's reference tax income (RFR) for the year before last is less than €25,000 (single person) or €50,000 (couple) for interest, and less than €50,000 (single person) or €75,000 (couple) for dividends. The request must be made by submitting a sworn statement before November 30th of the year preceding the payment. For assurance-vie policies, it can be made no later than the date of receipt. This exemption does not apply to social security contributions, nor does it exempt you from declaring your income.

This page deals with individuals who are tax residents of France. It does not cover companies, payers established outside of France, or withholding tax levied on non-residents: these are governed by other mechanisms.

What the 12.8 % sampling is really

The 12.8% withholding tax (%) is deducted by the institution paying your income. This is an advance payment of income tax. According to impots.gouv.fr, the rate is 12.8% (%) for all income paid from 2018 onwards, with the exception of certain capital redemption and assurance-vie products, which are subject to a withholding tax rate of 7.5% (%) (payments made from September 27, 2017). The required tenure for this 7.5% rate is not specified in the official documents; it should be verified with the source.

This advance payment is credited against your income tax for the year. If it exceeds the tax due, the excess will be refunded. According to impots.gouv.fr, it normally appears in box 2CK of tax return form no. 2042.

The exemption therefore applies to the moment the money leaves your account. It says nothing about how the income will be taxed on your tax return, which is a separate matter: by default, this income is subject to the flat tax rate (PFU) of 12.8% (this rate should be verified for assurance-vie products, see above), and you can opt for the progressive tax scale by checking box 2OP. As of 2026, the irrevocable nature of this option has been removed, according to impots.gouv.fr.

The reference tax income thresholds

The reference tax income used is that of the year before last (N-2), according to impots.gouv.fr. The tax administration's practical guide states that the reference tax income must be below the threshold. Therefore, an reference tax income equal to the threshold is not sufficient.

The thresholds for interest and dividends are the same on the impots.gouv.fr website (modified on 07/04/2026), in the 2026 income tax guide, and in the BOFiP BOI-RPPM-RCM-30-20-10. The threshold for the assurance-vie line item comes from the guide.

Only individuals who are tax residents of France can apply for the exemption.

Deadline: November 30

The request must be sent to the institution that pays your income, before November 30th of the year preceding the payment. The official documents use slightly different wording: impots.gouv.fr states "before November 30th," while the brochure says "no later than November 30th." To avoid any risk, submit your certificate before this date.

If no request is made before this date, the paying institution established in France will process the deduction, then declare and pay it to the Treasury. Exceptions exist (see below).

Assurance-vie, capitalization and retirement savings plans: up to the point of withdrawal

The timing differs for certain products. According to impots.gouv.fr, for assurance-vie products and for lump-sum withdrawals from a retirement savings plan, the request can be made "no later than the date of receipt of income." The brochure states, for capitalization bonds and contracts, and assurance-vie: "This request must be made no later than the date of payment of the proceeds." The BOFiP (Official Bulletin of Public Finances) provides the same flexibility for capitalization contracts.

This page does not detail the thresholds applicable to the capital withdrawal from a PER.

How to apply

You submit a sworn statement to the institution that handles your income payments. According to the BOFiP (Official Bulletin of Public Finances), the request can be made on plain paper. It must include your name and address. In it, you attest that your reference tax income (RFR) for the year before last is below the threshold. The institution may keep the request electronically.

A certificate presented incorrectly results in a fine of 10 % of the amount of the levy concerned.

What the exemption does not change

• Social security contributions remain due. The brochure states: "The exemption does not apply to social security contributions." According to impots.gouv.fr, their rate increased to 18.6% as of January 1, 2026, except for certain products which remain at 17.2%. For assurance-vie, the page refers to contracts "with a surrender value" and mentions "the guarantee of payment of capital at maturity": the exact condition is found on the page, which also excludes survivor's annuity and disability savings contracts. The list also includes old CEL and PEL accounts opened up to December 31, 2017 (with a time limit for PELs, see the page).
• The statement. Distributed income is reported on form 2042, regardless of whether it has been subject to withholding tax. If it is exempt, the institution reports the gross income on the single tax form (IFU).
• Income tax itself. The withholding is only an advance payment: the tax is settled on the return, where any advance payment is deducted.

Numerical example (fictitious profile)

Situation. Marc and Sophie, a married couple, receive €20,000 in gross dividends in their securities account. Their household's reference tax income (RFR) for the year before last was €68,000. They remain subject to the flat tax rate (PFU), without opting for the progressive tax scale. For simplicity, we will use a social security contribution rate of 18.6% (%) on these dividends (hypothetical income profile).

Issue. The dividend threshold for a couple is €75,000. Their taxable income (RFR) is €7,000 below this threshold: they can request an exemption. Without a request submitted before November 30th preceding the payment, €2,560 would be withheld at source.

Strategy. They submit a sworn statement to their institution before November 30th of the year preceding the payment of dividends.

Result.

In this scenario, the exemption shifts €2,560 over time: they retain it upon receipt of payment, then pay it upon filing their tax return. The social security contributions of €3,720 are withheld in both cases. If their reference tax income (RFR) had been €80,000, it would have exceeded the €5,000 threshold: the exemption would not have been applicable.

This profile is fictitious. The amounts illustrate the calculation and do not reflect your individual situation. Investments in stocks and unit-linked funds carry a risk of capital loss: this page deals with the taxation of their income, not with choosing an investment.

What changes depending on your situation

• The nature of the income : interest, dividends and assurance-vie contracts do not have the same thresholds or the same schedule.
• Your family situation Whether single or married, the BOFiP (French Public Finances Bulletin) applies to cases of divorce, separation, death of a spouse, or marriage. If the marriage took place two years prior (N-2) with separate tax returns and a joint account, both joint account holders must meet the threshold and request an exemption.
• New customer : BOFiP allows the application for subscription to be submitted, even after the deadline.
• Account transfer : a new application must be submitted to the new establishment.
• Revocation and death The revocation only applies to income received after it. Upon the client's death, the request remains in effect until the day the bank becomes aware of it.
• Who signs : the holder, the usufructuary of a split account, the administrator of a protected adult, or an agent with a special mandate.

The rule depends on your situation. No results are guaranteed.