Regulated savings: which interest payments are tax-exempt in 2026

Interest earned on Livret A, LDDS, LEP, and Livret Jeune savings accounts is exempt from income tax and social security contributions, according to economie.gouv.fr. For PEL and CEL accounts, it all depends on the opening date: those opened since January 1, 2018, are taxable from the first year. A PEL opened before 2018 is only exempt from income tax for its first 12 years. Bank savings accounts do not benefit from these tax advantages, and interest on fixed-term accounts is subject to the flat tax rate (PFU).

This page deals with the taxation of interest. It does not calculate social security contributions on a PEL (Home Savings Plan) or CEL (Home Savings Account): these should be verified with the official source or on your annual statement. It also does not address the situation of a non-resident, nor life insurance.

Overview

The list of exempt securities published by impots.gouv.fr also includes company savings accounts for accounts opened before January 1, 2014, and the proceeds of a popular savings plan (PEP). This page does not provide details on these two products.

The four exempt savings accounts

Savings account A, LDDS, LEP, youth savings account

For these four savings accounts, economie.gouv.fr states the same thing: "interest is exempt from income tax and social security contributions." The service-public.gouv.fr fact sheet on social security contributions also lists these products as exempt.

Source: economie.gouv.fr, table of savings products, written on 18/09/2026.

Two points of clarification:

• The Livret A savings account. The exemption is limited to one Livret A per natural person (impots.gouv.fr).
• The LEP. According to economie.gouv.fr, it is reserved for tax households residing in France and subject to income requirements (reference tax income ceiling). These requirements are detailed on a dedicated page.

The exemption applies to interest. The rates in the table are those indicated by economie.gouv.fr at the date of the source: consult it for the current rate.

PEL and CEL: the opening date decides

Two contracts bearing the same name do not have the same tax treatment depending on their opening date.

Open since January 1, 2018

Interest earned on PEL and CEL accounts opened since January 1, 2018, is taxable from the first year (impots.gouv.fr). For PEL accounts, the impots.gouv.fr website specifies that the annual deduction of 12.8% (%) is an advance payment of income tax: the final tax is then calculated using the flat-rate withholding tax (PFU) or, by option, according to the income tax scale. The savings bonus is eliminated for PEL and CEL accounts opened from this date onward.

CEL opened before 2018

According to economie.gouv.fr (page on the housing savings account), the interest on a CEL opened before 2018 is exempt from income tax but remains subject to social security contributions.

For PEL accounts opened before 2018: the exemption ends in the 12th year

Interest and bonuses on a home savings plan (PEL) are generally exempt from income tax. For a PEL opened before December 31, 2017, the French tax authority (impots.gouv.fr) states that "interest is only exempt from income tax for the first 12 years of the plan." After that, the interest earned each year is taxable at the flat rate of 12.8% (%), or according to the standard tax scale if chosen.

A home savings plan (PEL) opened in 2008 has now exceeded its first 12 years (2008 + 12 = 2020). According to service-public.gouv.fr (information sheet F16140, verified on 09/10/2026), a PEL opened before March 1, 2011, can be maintained indefinitely and continues to accrue interest, without requiring further deposits after 10 years. Any annual interest earned is therefore included in the tax return.

Social security contributions for PEL and CEL accounts

Social security contributions for PEL and CEL accounts are not shown here: the applicable rate and its application based on the account opening date and the plan's age should be verified with the official source. Your bank's annual interest statement will show the amount actually deducted.

What is not exempt

A bank savings account "does not benefit from the tax advantages reserved for regulated savings accounts" (service-public.gouv.fr). Its interest is subject to income tax, in the category of investment income, and to social security contributions. The rate advertised by the bank is a gross rate: it does not take tax into account.

For a fixed-term account, service-public.gouv.fr indicates a total flat-rate tax of 31.4 % deducted by the bank, i.e. 12.8 % of income tax prepayment and 18.6 % of social security contributions (fact sheet verified on 19/06/2026).

Numerical example (fictitious profile)

Situation. A single person, tax resident in France, holds a fully funded Livret A and LDDS (22,950 € and 12,000 € respectively), at a rate of 1.7%. They also hold a PEL opened in 2008, assumed to still be active in 2026, with annual interest of, by hypothesis, 1,000 €.

Issue. She wants to know what portion of her annual interest income goes into her tax return.

Strategy. It classifies each product according to its nature and opening date: tax-exempt savings accounts on one side, PEL accounts over 12 years old on the other.

Result.

The calculation is simplified: it assumes full savings accounts for twelve months, a constant interest rate of 1.7% (%), and ignores bi-weekly calculations. Any social security contributions on the PEL (Home Savings Plan) are not included. The €1,000 interest earned on the PEL, the continuation of the PEL in 2026, and the equality of gross interest with a fixed-term deposit account are all assumptions. This profile is hypothetical. The figures illustrate the calculation and do not reflect your specific situation.

What changes depending on your situation

• The opening date of your PEL and CEL accounts: before or since January 1, 2018.
• The age of your PEL opened before 2018: the income tax exemption only applies for the first 12 years.
• Your eligibility for the LEP depends on your reference tax income and your tax residence.
• The number of savings accounts you can hold: one Livret A per person.
• Your tax residence, which notably determines access to the LEP (Livret d'Épargne Populaire). This page does not address the situation of a non-resident.

No results are promised.