The French flat tax on dividends: what is left after 31.4%
One rate on the gross dividend, two components, and an option that only helps some households.
Figures checked by Radif Partners · Editorial policy · How we calculate
Your dividends after the flat tax
Net dividends
€13,720
| Income tax (12.8 %) | €2,560 |
| Social levies (18.6 %) | €3,720 |
| Total (31.4 %) | €6,280 |
In 2026, a dividend paid by a French SASU or any other company subject to corporate tax bears the prélèvement forfaitaire unique (PFU), known in France as the flat tax, of 31.4 %: 12.8 % of income tax and 18.6 % of social levies, according to service-public, the official government information site. On €20,000 of gross dividends that comes to €2,560 of income tax and €3,720 of social levies, €6,280 in all, and the shareholder keeps €13,720. The rate applies from the first euro, with no allowance. A 12.8 % amount is withheld when the dividend is paid, as a prepayment. Instead, you can opt for the progressive income tax scale: the dividend is then counted at only 60 % of its amount thanks to a 40 % allowance. That option pays off for a household with a low marginal rate: in the 11 % band, the tax works out at 6.6 % of the dividend against 12.8 % under the flat tax. Remember that a dividend comes out of profit that has already paid corporate tax.
The 31.4% in two parts
The PFU flat tax is made of a fixed 12.8 % income tax and 18.6 % of social levies (prélèvements sociaux). Both apply to the gross dividend, the amount the company decides to distribute. The table gives four examples; the mini-calculator at the top redoes it for yours.
| Gross dividend | Income tax (12.8 %) | Social levies (18.6 %) | Total taken | Net dividend |
|---|---|---|---|---|
| €5,000 | €640 | €930 | €1,570 | €3,430 |
| €20,000 | €2,560 | €3,720 | €6,280 | €13,720 |
| €50,000 | €6,400 | €9,300 | €15,700 | €34,300 |
| €100,000 | €12,800 | €18,600 | €31,400 | €68,600 |
The charge is strictly proportional: €100,000 of dividends costs twenty times what €5,000 does. Neither the French family quotient, which divides household income into shares, nor your other income plays any part, so the result is easy to predict when deciding on a payout.
Before the flat tax comes corporate tax
A dividend is never the first tax hit. The company has already paid corporate tax (impôt sur les sociétés, IS) on its profit: 15 % up to €42,500, 25 % above. Taken together, the two taxes absorb 41.7 % of profit paid out from the reduced band and 48.6 % from the normal band. That combined charge is what you compare with the cost of a salary, as the page on salary or dividends does.
The prepayment taken at source
When paying out, the company keeps back 12.8 % of the gross dividend: the PFNL, a prepayment against the year’s income tax. If you stay with the flat tax it covers the income tax part exactly. If you choose the progressive scale, final tax is recalculated and the prepayment is credited against it. The option only changes this income tax part, which is all the next table compares (sheet F32963).
The progressive-scale option: who gains
The option swaps the flat 12.8 % for the progressive scale, applied to only 60 % of the dividend thanks to the 40 % allowance. In practice the dividend bears 6.6 % of tax if it falls in the 11 % band and 18.0 % in the 30 % band. The table compares the income tax part on €20,000 of dividends for different households.
| Household | Tax under flat tax | Tax under the scale | Cheaper |
|---|---|---|---|
| Single, no other income | €2,560 | €0 | scale |
| Single, €25,000 of other income | €2,560 | €2,960 | flat tax |
| Single, €60,000 of other income | €2,560 | €3,600 | flat tax |
| Couple, 2 children, €50,000 of other income | €2,560 | €1,917 | scale |
The scale wins for a lightly taxed household whose income per share stays in the lower bands even after adding the dividend. It loses once taxable income per share reaches the 30 % band, which starts at €29,579. The comparison only uses the income shown on each row: if in doubt, run both cases with your full tax return.
The special case of an EURL manager
For a SASU president the flat tax is the only charge on a dividend. For the majority manager of an EURL, the part above 10 % of share capital, share premium and current accounts goes into the base for self-employed contributions (Urssaf). With €5,000 of capital, €19,500 out of €20,000 is affected. The full mechanism is on EURL dividends.
All examples assume you are taxed in France as a resident, with the 2026 rates; if you still have income or ties abroad, check your own position before relying on them. The figures are estimates from published rates, not advice tailored to you, and only the tax office sets the tax due.