Life annuity and disability savings: the 25% tax reduction on premiums, capped at €1,525 plus €300 per dependent child

Premiums paid during the year into a life annuity or disability savings contract entitle the payer to a tax reduction of 25% of their amount. Premiums are capped at €1,525, resulting in a maximum reduction of €381.25. This limit is increased by €300 per dependent child. Tax residency in France is required.

This page covers the conditions, the ceiling, the declaration, and social security contributions. It does not address the procedures for challenging the reduction in the event of termination of a disability savings contract, nor the taxation of the annuity upon withdrawal, nor the situation of non-residents.

The principle in a table

Sources: service-public.gouv.fr, fact sheet «Survivorship annuity or disability savings premiums (tax reduction)» (verified on 15/04/2026), and BOFiP BOI-IR-RICI-40 (version in force since 18/06/2024).

Two contracts, two situations

Survivor's annuity: who can be a beneficiary?

The service-public.gouv.fr website lists the following people:

• a child; ;
• another direct relative (ascendant or descendant); ;
• a relative in the collateral line up to the 3rd degree (brother, uncle, niece for example); ;
• a person living under your roof and dependent on you.

The disability must meet one condition: according to the information sheet, it must prevent your relative from working "under normal, profitable conditions" (the sheet also covers participation in standard-level training). The BOFiP (French Official Tax Bulletin) refers to a "physical or mental infirmity, whether congenital or acquired." It specifies that the survivor's annuity pays a lump sum or a lifetime annuity upon the death of the policyholder.

Disability savings: three conditions

The information sheet sets out three conditions for this contract: a disability that prevents you from earning a living under normal conditions, a pension that has not yet been claimed, and a duration of at least 6 years. The practical guide to filing income tax returns refers to an actual duration of "at least 6 years".

The information leaflet specifies that if the contract is terminated before the end of the minimum six-year period, "the tax reductions obtained will be reassessed." The details of this reassessment can be verified with the source (BOFiP BOI-IR-LIQ-20-20-40) and by consulting the contract.

Calculating the ceiling

The basic premium limit is €1,525. Two additional premiums are available, according to the policy details:

• €300 per dependent child, or €150 per child in the case of shared custody; ;
• €300 per dependent holder of the disability inclusion mobility card.

If your tax household has taken out both a survivor's annuity and a disability savings plan, the limit applies to all contracts. The BOFiP (French Official Tax Bulletin) adds a useful rule: the portion of premiums exceeding the limit cannot be carried forward to a subsequent year. Therefore, premiums exceeding the annual limit do not generate any additional tax reduction, either this year or later.

The maximum reduction of €381.25 corresponds to 25 % of €1,525. With two dependent children, the ceiling increases to €2,125 and the maximum reduction to €531.25.

Declaration and supporting document

The total amount of premiums paid is entered on line 7GZ of form 2042 RICI, according to the practical guide to the 2025 income tax return (section "Premiums for life annuity and disability savings contracts"). The same line appeared in the previous guide. The box number may change from one year to the next: check the form for the current year.

Service-public.gouv.fr requests that you keep the certificate issued by the insurer "in case of a request from the administration." The information sheet does not specify how long you should keep it: this page provides no information.

What the reduction does not consume

According to the BOFiP (Official Bulletin of Public Finances), this reduction is not taken into account when calculating the overall cap on certain tax benefits. Therefore, it does not use up this cap. The BOFiP paragraph refers to another BOI (Official Bulletin of Public Finances) for details: review it before developing a strategy that combines several schemes.

Social security contributions: 18.6 % for these two contracts

Three official pages say the same thing for these contracts:

• service-public.gouv.fr (information sheet on the taxation of income from a assurance-vie contract, verified on 15/04/2026): "However, for life annuity and disability savings contracts, the social security contribution rate is 18.6%."«
• impots.gouv.fr (modified on 08/04/2026): the products attached to these contracts are "subject to the new rate of 18.6%".
• economie.gouv.fr (written on 17/09/2026): these contracts are subject to the rate of 18.6 %, while assurance-vie contracts with a surrender value remain at 17.2 %.

This page only shows this rate for the products of these two contracts. For other assurance-vie contracts, see the page dedicated to social security contributions.

What has changed

• Social security contributions. Since 01/01/2026, the overall rate is 18.6 % for most investment products; assurance-vie contracts with a surrender value remain at 17.2 %, except for these two contracts, at 18.6 %.
• Survival annuity. The BOFiP version of 18/06/2024 indicates that the 2024 finance law "broadens the scope of the tax reduction" for life annuity contracts, starting with the taxation of income for the year 2023. The details of the extension of the €300 increase are not given on the page consulted: they are not repeated here.
• Ceiling and rate. The rate of 25 % and the ceiling of €1,525 are shown in the service-public.gouv.fr fact sheet (verified on 15/04/2026) and in the BOFiP (version of 18/06/2024).

Life annuity and disability savings: a numerical example (fictitious profile)

Situation. A couple with tax residency in France has two dependent children. During the year, they pay €1,800 into a life annuity contract for the benefit of a relative with a disability and €600 into a disability savings contract, totaling €2,400 in premiums. The tax due is at least equal to the calculated tax reduction. These figures are hypothetical.

Issue. What is the tax reduction, and does the ceiling apply?

Strategy. Add the premiums from both contracts, calculate the household ceiling (€1,525 plus €300 per dependent child), retain the smaller of the two amounts, then apply 25 %.

Result.

The €275 that exceeds the limit is not carried over to the following year.

Alternative: A single person with no dependent children pays €1,000 in premiums. The maximum premium is €1,525, so the entire premium is deducted. Their tax reduction is €250.

These profiles are fictitious. They illustrate the calculation and do not predict any results for your specific situation.

Life annuity and disability savings: what changes depending on your situation

• Your tax residence. The form stipulates that tax residency must be in France. Non-resident status should be verified with the source.
• The protected person. For a survivor's annuity, their relationship to you and their situation (disability, dependents, household) are taken into account.
• The contract. A disability savings contract must have a duration of at least 6 years; the clauses can be read in the contract.
• Your tax household. The number of dependent children and shared custody arrangements affect the ceiling.
• Your other contracts. The ceiling is common to all life annuity and disability savings contracts in the household.
• Your tax. According to the BOFiP (§ 220), this reduction "cannot give rise to a refund." The calculation in this example therefore assumes a tax liability at least equal to the reduction.

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