Interest from fixed-income investments: taxation in 2026

Interest earned on a taxable savings account, fixed-term deposit, or bond from January 1, 2026, onwards is subject to a flat tax of 31.4%: 12.8% income tax and 18.6% social security contributions (impots.gouv.fr; service-public.gouv.fr, fact sheet F2329). The 12.8% withholding tax is only an advance payment. You may be exempt from this tax if your reference tax income is less than €25,000 (€50,000 for a couple). You can also opt for the progressive tax scale on your tax return.

This page deals with French tax residents who receive interest from fixed-income investments. It does not cover non-residents, the flat-rate withholding tax, the limits on regulated savings accounts, or assurance-vie, which has its own dedicated page. It focuses on the taxation of interest, not on investment choices or the risks associated with bonds, which are not addressed here.

Which products are affected?

Fixed-income investments include ordinary interest-bearing bank savings accounts, term deposits, and bonds. The 2026 income tax guide (2025 income tax return) includes in the same section, line 2TR, interest from taxable bank savings accounts, proceeds from deposit and term deposit accounts, proceeds from bonds and government loans, as well as proceeds from receivables, guarantees, and partners' current accounts.

Conversely, the brochure asks not to declare, in particular, the interest from the Livret A, the Livret d'épargne populaire (LEP), the Livret de développement durable et solidaire (LDDS), the Livret jeune, the Plan d'épargne populaire (PEP), a Compte épargne-logement (CEL) opened before January 1, 2018 and a Plan d'épargne-logement (PEL) opened before that date and less than 12 years old.

Interest rates for interest earned in 2026

The "Investment Income" page on impots.gouv.fr (updated 08/04/2026) indicates that, as of January 1, 2026, the social security contribution rate will increase to 18.6%. Fact sheet F2329 on service-public.gouv.fr (verified 30/06/2026) indicates that the social security contribution rate depends on the year the income is received and is generally 18.6% for 2026 income.

The impots.gouv.fr website specifies that certain products remain at 17.2% %, including interest earned on CEL accounts opened up to December 31, 2017, and interest earned on PEL accounts opened up to that date during the first 12 years of the plan. Fact sheet F2329 also lists PEL and CEL accounts at 17.2% %.

For interest received in 2025, this page does not calculate social security contributions: check the rate with the official source.

Withholding tax: an advance payment

The BOFiP (BOI-RPPM-RCM-30-20, version of 30/06/2022) sets the withholding tax rate at 12.8%. It does not release income tax: it is credited against the tax due for the year in which it was levied, and any excess is refunded.

The levy is due when the products are paid for or credited to the account (BOFiP BOI-RPPM-RCM-30-20-30, paragraph 140). Therefore, interest credited to an account is subject to the levy even if you have not withdrawn it.

The exemption

You can request to be exempt from the 12.8 % levy on interest if the reference tax income (RFR) of the penultimate year is below a threshold.

The request must be made to the paying institution, by means of a sworn statement, before November 30th of the year preceding the year in which the income was paid (impots.gouv.fr, amended on April 7, 2026). For interest paid in 2027, the deadline is therefore November 30, 2026.

The exemption does not apply to social security contributions, which remain due.

Payer established outside of France

If the person paying the interest is established outside France, the levy is declared and paid by the taxpayer himself, by declaration 2778. According to the BOFiP (paragraph 20), only households whose RFR of the penultimate year reaches €25,000 (single person) or €50,000 (joint taxation) are subject to it.

Declare your interests

The 2026 income tax guide corresponds to the 2025 income tax return: form 2042 K is pre-filled with investment income received in 2025, and fixed-income interest is entered on line 2TR. For interest received in 2026, refer to the corresponding tax return guide to confirm the line. Similar products, such as participating loans and minibonds, have different lines.

The option for the progressive scale

You can opt for the tax scale by ticking box 2OP on form 2042 (impots.gouv.fr, amended on 20/03/2026). Four points are awarded:

• The option is annual and comprehensive. According to the BOFiP (BOI-RPPM-RCM-20-15, paragraph 310, version of 21/06/2021), it applies to all income and capital gains from investments. You do not choose the tax brackets solely for your interest payments.
• A portion of the CSG becomes deductible. Impots.gouv.fr indicates a deduction of 6.8 % in case of option.
• Expenses become deductible. Securities custody and coupon collection fees are only deductible if you opt for the standard tax scale (impots.gouv.fr, updated 17/07/2026). The 2026 brochure lists them on line 2CA.
• The 40 % allowance mentioned by impots.gouv.fr applies to eligible dividends. It is not presented for the benefit of the people.

Whether the option is irrevocable or not should be checked with the official source (impots.gouv.fr, BOFiP) before ticking.

Numerical example (fictitious profile)

Situation. Claire, single, with one tax unit, a French tax resident, received €6,000 in interest from a fixed-term deposit account in 2026. She will declare this in her next tax return. Her reference tax income (RFR) for the year before last is less than €25,000 in cases 2 and 3. Assumptions: the tax brackets used are those for 2025 income for one tax unit, for illustrative purposes (the brackets applicable to 2026 income should be verified with the official source); "other taxable income" refers to income excluding interest; the interest is added in full to this income, without any deduction; the tax discount and the deduction of the CSG portion are not calculated.

Issue. Flat-rate withholding tax of 12.8% (%) or a progressive tax scale? The answer depends on the rest of one's income: three scenarios are compared. Only income tax is compared; social security contributions are not calculated.

Strategy. Compare the tax at the rate of 12.8% (768 €) and the additional tax that the interest adds to the tax bracket. In cases 2 and 3, requesting the exemption before November 30th of the year preceding the payment avoids the advance payment of 12.8%.

Result.

In case 1, the €6,000 of interest is taxed at 30% (%). In case 2, the total (€11,000) remains in the 0% (%) tax bracket. In case 3, €4,400 exceeds the €11,600 threshold and is taxed at 11% (%). These differences are based on the assumptions above; they should be confirmed for your specific situation.

The 2025 income tax brackets include a 0% tax bracket (%) up to €11,600, a 11% tax bracket (%) up to €29,579, a 30% tax bracket (%) up to €84,577, a 41% tax bracket (%) up to €181,917, and a 45% tax bracket (%) above that amount (service-public.gouv.fr, fact sheet F1419, verified on 04/15/2026). Refer to the brackets for the year in which your interest payments were received.

This profile is fictitious. The figures illustrate the calculation. They do not predict your situation.

What changes depending on your situation

• The product : exempt savings account, yielding 17.2 %, or interest at 18.6 % of social security contributions.
• The year in which interest was received : the rate of social security contributions depends on it.
• Your RFR for the second-to-last year : it is a condition for exemption.
• The date of your request : it must be done before November 30th of the year preceding the payment.
• The place of establishment of the payer : in France or outside of France.
• The rest of your income : it determines the rate of the scale.
• Your other capital income : the option is global.
• Your tax residence : the page is aimed at tax residents of France.

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