The various social benefits from the French government and the employer allowances mentioned in this article are either totally or partially exempted from the French income tax declaration.
Social Benefits from the French Government
The following social benefits from the French government are completely exempted from income tax. They do not have to be declared as financial resources in your annual French income tax declaration.
- Revenu de solidarité active (RSA), a minimum level of income given to people without sufficient financial resources that varies according to the composition of the household. It should not be confused with the unemployment benefit (ARE).
- Prime d’activité
- Family allowances paid from 1st child such as,
- Birth allowance
- Basic allowance (after childbirth)
- Adoption allowance
- Basic allowance (adopted child)
- Allowance paid in the event of the death of a child
- Family allowances paid from the 2nd child onwards such as,
- From the 2nd child: family allowances
- From the 3rd child: family supplement
- From the 3rd child: house shifting allowance
- Family allowances paid for children cared for by a third party such as,
- Complement of free choice of childcare (CMG) – Childminder
- Complement of free choice of childcare (CMG) – Home care
- Complement of free choice of childcare (CMG) – Micro-creche
- Family allowances paid for children cared for by a single parent:
- Family support allowance (ASF) such as,
- Benefits related to a disability such as,
- Housing allowances such as,
- Exceptional end-of-year Christmas bonus (Prime de Noël)
Allowancess from your Employer
The allowances paid by your employer are exempt from income taxes but within certain limits. So, you must declare only the amount that exceeds these limits, on your annual French income tax declaration.
| Employer Allowance | Income Tax Exemption Limits |
|---|---|
| Meal Vouchers (Titres-restaurant) | Up to €6.91 in 2023 Up to €7.18 in 2024 |
| Holiday Vouchers (Chèques-vacances) | Up to €1,747 in 2023 |
| Transportation expenses for Home-to-Office travel (public transportation including bicycle rental services) | Up to 75% of expenses in 2023 |
| Sustainable Mobility Package (bicycle, etc.) and Expenses for the use of a personal vehicle for Home-to-Office travel | Up to €700, including a maximum of €400 for fuel expenses (€900, including €600 in French Overseas Territories) in 2023 |
| Reimbursement of Fuel or Electric Vehicle charging expenses for Home-to-Office travel of at least 30 km (or whatever the distance for carpooling drivers) | €310 in 2023 |
| Financial assistance for direct payment (or by CESU) of personal assistance services | Up to €2,421 per year in 2023 |
Note: The exemptions for 2024 will be updated when they are published by the French income tax department.
Sources & References
- Faut-il déclarer les aides sociales et les aides versées par l’employeur ? www.service-public.fr
- Tax : French Income Tax Declaration Deadlines In 2024 For AY2023 www.prasanthragupathy.com
- 2024 Income Tax Calculation Simulator: income earned in 2023 www.impots.gouv.fr
