PER: How is the deduction ceiling calculated, and what changes with the 2026 Finance Law?

The maximum deduction for your voluntary contributions to a PER (Retirement Savings Plan) is the higher of two amounts: 10 times the annual social security ceiling (PASS), or 10 times your professional income from the previous year. For a self-employed worker, the income considered is profit. This maximum is capped at 10 times eight times the PASS.

Since 2026, payments made by a holder aged 70 or over are no longer deductible.

The gross ceiling: two amounts, one maximum

The gross ceiling is the higher of two amounts:

1. 10 % of the PASS: this is a floor, which comes into play when incomes are low; ;
2. 10 % of professional activity income from year N-1, the profit for a self-employed person.

The gross ceiling is then limited to 10 % of eight times the PASS. This is the upper ceiling, which applies to high incomes.

Which PASS to choose

The PASS (annual social security ceiling) for the calendar year preceding the year of payment must be used. A payment made in 2027 is calculated using the PASS of 2026, set at €48,060. A payment made in 2026 is calculated using the PASS of 2025.

From the gross ceiling to the net ceiling

The net limit is the gross limit minus any amounts paid into company pension plans in the previous year (N-1). For employees, the BOFiP (Official Tax Bulletin) refers to plans under Article 83, the PERO (Retirement Savings Plan), and the PERCO (Collective Retirement Savings Plan) or PERECO (Collective Retirement Savings Plan) only for tax-exempt contributions, such as employer matching contributions. A contribution to a company pension plan therefore reduces the available space for your voluntary contributions.

The self-employed worker/manager

Self-employed workers can opt to deduct their PER contributions from their professional income (BIC, BNC, BA), using sections 6OS and/or 6OT of the income tax return.

It is possible to opt for non-deduction of contributions. This choice changes the withdrawal rules (see below).

The calculation of a self-employed business owner's contribution ceiling is based on their individual file, particularly regarding contributions already paid. This page provides the general rule, without a formula specific to the self-employed.

What the 2026 Finance Law changes: no more tax advantages from age 70

From 2026 onwards, contributions from individuals aged 70 or older will no longer be tax-deductible. The government's information booklet ("LF 2026, art. 9 and 10") states that the tax advantages associated with contributions to retirement savings plans "are eliminated for individuals aged 70 and over." For a business owner approaching 70, the account holder's age becomes a crucial factor to consider: the date on which age is assessed is determined by the current regulations.

This page does not deal with the other consequences of this rule, particularly at exit: these can be checked on the file, in the up-to-date texts.

The single flat-rate levy on gains is 31.4 % from January 1, 2026.

The payout: lump sum or annuity

As a lump sum

• Voluntary contributions that have been deducted are taxed according to the income tax scale, without the 10 % allowance.
• For non-deductible contributions, economie.gouv.fr indicates that the corresponding portion of capital is exempt. The case of non-deductible contributions made from age 70 onwards is not addressed here; this must be verified on the individual's file.
• The products (the gains) are taxed at the single flat rate of 31.4 %, or at the scale by option.

As an annuity

The annuity is taxed as a life annuity. It is taxed free of charge for tax-deductible payments, and as a burden for non-deductible payments. For tax-deductible payments, the economie.gouv.fr website indicates a 10% allowance on the annuity.

Early departure for the main residence

According to the BOFiP tables, it is done in capital. It is excluded for rights resulting from mandatory contributions.

Three books to avoid

1. Remember the PASS for the year of payment. It is the PASS from the previous calendar year that counts.
2. Forget about the amounts already paid in year N-1 into company plans. They reduce the net limit available for your voluntary contributions.
3. Continue to deduct at age 70 or older. From 2026 onwards, payments from a holder aged 70 or over are no longer deductible.

Numerical example (fictitious profile)

Situation. A self-employed professional operates as a freelancer. He wishes to make a voluntary contribution to his retirement savings plan (PER) in 2027. The relevant annual social security ceiling (PASS) is that of 2026, i.e., €48,060. His 2026 profit is €150,000.

Issue. The ceiling depends on the previous year's profit, a floor linked to the PASS (annual social security ceiling), and an upper ceiling. Depending on the profit level, different factors determine the ceiling.

Strategy. The firm reviews with the executive his income, his other pension plans and the timing of the payment.

Result. For a profit of €150,000:

The same calculation gives different results depending on the profit:

This ceiling is a gross ceiling, before deducting amounts paid in the previous year (N-1) into company plans. The calculation assumes that the rules will not change between now and 2027. This profile is hypothetical. The figures illustrate the mechanism and do not predict the outcome for your specific situation.

What changes depending on your situation

• Your status: employee, or self-employed person who deducts from their professional income.
• The level of your business income or profit from the previous year.
• Your contributions from the previous year to company plans, which reduce the net limit.
• Your age, in relation to the 70-year threshold.
• Your choice between deduction and non-deduction.
• Your intended exit method: lump sum, annuity, main residence.

This page does not show the amount of your ceiling in euros. It is calculated based on your application. No results are guaranteed.