Transfer of securities: Flat tax rate of 31.4% (%) or progressive tax scale, how to choose in 2026

For capital gains on the sale of securities, the flat tax rate (PFU) is the default method of taxation: 31.4% in total, comprising 12.8% income tax and 18.6% social security contributions. The progressive tax scale only becomes more favorable in two cases: your securities qualify for a holding period allowance, or the tax rate applied to your gain is low. For securities acquired since January 1, 2018, no holding period allowance is provided, except in certain cases. The flat tax rate is then the most advantageous option as soon as the tax rate on your gain exceeds 12.8%.

This page deals with the transfer of securities. It does not deal with dividends, which are covered on another page.

What remains unchanged, regardless of the choice

Two elements are the same with the flat-rate tax and with the tax scale:

• Social security contributions of 18.6 %. They relate to the gain. The allowance for holding period, when it exists, does not reduce them.
• The fixed allowance of €500,000 for a retiring executive, if it applies to your transfer. It plays with the flat-rate tax as with the tax scale.

The comparison therefore focuses solely on the income tax portion.

The PFU: the default mode

Capital gains realized since January 1, 2018, are automatically subject to income tax at a flat rate of 12.8%. Social security contributions of 18.6% are added. The total is 31.4%. The flat tax rate applies automatically.

The option for the pricing scale

You can opt out of the flat tax rate and choose the progressive income tax scale. This is a global choice: it is selected in box 2OP of the tax return and is not made on a tax return basis. The rules governing a change of mind after making this choice are not covered here; they should be checked before selecting the option.

Regarding the sale of the capital, the tax scale allows for a holding period allowance. This allowance only applies to gains taxed according to the standard scale. It cannot be applied to gains subject to the flat tax rate of 12.8% (%).

Two questions will decide

1. When were your securities acquired or subscribed for?

• Before January 1, 2018 The allowance for holding period may apply, with the option to use the standard scale. The standard allowance is 50% or 65% depending on the holding period. An enhanced allowance of 50%, 65%, or 85% exists for certain SMEs, subject to specific conditions.
• Effective January 1, 2018 The securities are outside the scope of the allowance. The scale applies without reduction of the base.

2. What rate actually applies to your winnings?

The tax scale is progressive. Your earnings are added to your other income and move up through the tax brackets. The higher the base amount, the higher the average tax rate applied to it.

The comparison threshold

Under the flat tax rate (PFU), income tax is 12.8% of the gain. Under the progressive tax scale, it is equal to the rate applied to the base amount, after deductions. The progressive tax scale is therefore lower when:

rate applied to the base < 12.8 % ÷ (1 − abatement rate)

This table isolates income tax. It ignores the deductible portion of the CSG (General Social Contribution) if you opt for the progressive tax scale, as well as other elements of your tax return. It does not replace a tax simulation on your specific case.

Numerical example (fictitious profile)

Situation. Julien and Claire each sell shares for a gain of €300,000. Both sell in 2026. Julien subscribed to his shares in 2012, and Claire to hers in 2021. Neither has any other income subject to the option this year. For simplicity, we assume that the tax brackets apply a rate of 30% to the taxable base of this gain (hypothetical profile).

Issue. Should I check box 2OP?

Strategy. Compare, for each, the income tax at the flat rate (PFU) and the progressive tax scale. Social security contributions are the same in both cases.

Result.

For Julien, the 65% allowance reduces the tax base to €105,000. For Claire, nothing reduces the base: the flat tax rate (PFU) clearly prevails. With a truly progressive tax scale, Claire's €300,000 base would be taxed at a higher average rate than Julien's €105,000. The actual difference would be greater in favor of the flat tax rate for Claire.

These profiles are fictitious. The 30 % rate is an assumption. The calculation ignores the portion of CSG deductible if you opt for the standard tax scale. The figures illustrate the calculation. They do not reflect your specific situation.

Case of a manager who is retiring

The fixed allowance of €500,000 cannot be combined with the allowance for holding period. If your securities were acquired before 2018, you can waive the fixed allowance, if you opt for the progressive tax scale, in favor of the standard or enhanced allowance. The comparison has its own thresholds and is detailed on a dedicated page.

What changes depending on your situation

• The date of acquisition or subscription of your securities.
• The rate that applies to your base : it depends on your other income for the year.
• The existence of other capital gains or other income subject to the option : it is global.
• Your situation as a retiring executive, with the fixed allowance.
• The nature of the securities : some transferors are subject to special regimes, not covered here.

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