France's PFU flat tax in 2026: 31.4%, box 2OP and the progressive scale explained

• 31.4% in 2026: 12.8% income tax and 18.6% social charges, after the CSG increase voted for 2026.
• Still at 17.2% social charges: assurance vie, the PEL and CEL, rental income and property capital gains.
• Box 2OP: opting for the scale covers all of the year's investment income, with a 40% allowance on dividends; it can now be withdrawn if it turns out unfavourable.
• 12.8% advance payment taken in the year of payment, unless you request an exemption below €50,000 of reference taxable income (€75,000 for a couple) for dividends.

The flat tax was introduced in France in 2018 to simplify the taxation of savings: a single rate, whatever the saver's income, instead of the income tax scale. Eight years later it is still the default rule, but its rate has changed, its exceptions have multiplied, and box 2OP, which lets you opt out, has become more flexible. Filling it in properly can save a modest household several hundred euros a year.

This guide explains what the PFU is, what it taxes in 2026 and what escapes it, how the option for the scale works with a worked example, what to do if you forgot to tick box 2OP, and the case of foreign brokers. The rules quoted come from service-public.fr (in French) and the official 2026 income tax guide.

What is the PFU?

The prélèvement forfaitaire unique is a flat tax rate applied in France to income from movable capital. For that income it replaces the progressive income tax scale, unless the household expressly chooses the scale. It has two parts: income tax at 12.8%, and social charges, which fund social security (CSG, CRDS and the solidarity levy).

The overall rate rose from 30% to 31.4% on January 1, 2026, because the 2026 Social Security Financing Act raised the CSG on capital income from 9.2% to 10.6%. Social charges are therefore 18.6% in the general case, as service-public.fr's page on social charges confirms.

On the tax notice (avis d'impôt), income taxed under the PFU appears on a separate line, “Revenus au taux forfaitaire”, and the 12.8% tax on it on the line “Impôt proportionnel”. It is mostly income from movable capital (RCM): dividends, interest, bond coupons. The RCM guide lists them and the boxes of section 2 of the return.

What the PFU taxes in 2026, and what escapes it

The exceptions matter: the same saver can pay 31.4% on dividends, 18.6% on a PEA, 24.7% on assurance vie and nothing on a Livret A. The guides to assurance vie tax and to the PEA cover those two wrappers, and the one on French savings accounts covers the tax-free options.

The 12.8% advance payment taken at source

In the year dividends or interest are paid, a French bank withholds a 12.8% income tax advance, called the prélèvement forfaitaire non libératoire, on top of social charges. It is not an extra tax: it is credited against the tax calculated the following year, and any excess is refunded.

A household can be exempted if its reference taxable income from two years earlier is below €50,000 for a single person or €75,000 for a couple, for dividends, and below €25,000 or €50,000 for interest. The request is made to the bank, with a sworn statement, before November 30 of the year before payment. Social charges are still withheld.

Box 2OP: choosing the progressive scale

Ticking box 2OP on the tax return puts all of the household's income from movable capital and capital gains on securities for the year on the progressive income tax scale, instead of 12.8%. You cannot choose the scale for dividends and the PFU for capital gains: the option is global. Crypto-assets have their own, separate option.

On the scale, three benefits apply: a 40% allowance on share dividends, part of the CSG, 6.8%, deductible from the taxable income of the year it is paid (the same year for income taxed at source), and for securities bought before 2018, holding-period allowances on capital gains. Social charges stay at 18.6% either way.

Worked example: PFU or scale?

Take a household receiving €2,000 of dividends and €1,000 of interest in the year, with no capital gain. Under the PFU it pays €3,000 × 31.4% = €942. On the scale, dividends count for only 60%, giving a taxable base of €2,200, plus €558 of social charges:

The general rule is simple: the scale wins in the 0% and 11% bands, the PFU from 30%. There are special cases, such as a household in the 30% band receiving only dividends: with the 40% allowance, tax on the scale comes to 18% of dividends, above the PFU's 12.8%. The marginal tax band is the one the last euro of taxable income falls into: 0%, 11%, 30%, 41% or 45%. The income tax simulator on impots.gouv.fr compares both calculations before you file.

I forgot to tick box 2OP: what can I do?

The 2026 Finance Act removed the irrevocable nature of the option. According to service-public.fr, for 2026 income declared in 2027, you can withdraw the option within the claim period, or during a tax audit, if it turns out unfavourable. The other way round, if you forgot to tick the box, the first route is the online correction service for tax returns, open every summer on impots.gouv.fr; after that, you need to send a claim to your tax office and ask whether the option can still be exercised.

Foreign broker: the extra obligations

With a broker based outside France, nobody withholds the advance payment or social charges at source. French taxpayers must declare and pay them themselves, using form 2778-DIV for dividends or 2778 for interest, within the first fifteen days of the month after payment, unless they meet the exemption conditions. Tax already withheld in the company's country, on US dividends for example, is not lost: it gives a tax credit within the limit set by the tax treaty.

Every account held abroad, whether a brokerage account, bank account or crypto platform account, must also be declared each year on form 3916 or 3916-bis, attached to the tax return. Forgetting costs a €1,500 fine per bank or securities account, and €750 per crypto account, €1,500 above €50,000. Many online brokers popular in France are based in another EU country: check their terms and conditions.

PFU: the key points

1. By default, all investment income is taxed at the 31.4% PFU: there is nothing to do.
2. In the 0% and 11% bands, compare with the scale and tick box 2OP if it is cheaper.
3. Before November 30, request the exemption from the advance payment if your reference taxable income allows it.
4. With a foreign broker, pay the advance and social charges yourself, and declare the account on form 3916.
5. Use the wrappers: the PEA and assurance vie stay less taxed than an ordinary brokerage account over time.

The guide on where to put your money ranks investments by tax and horizon.

This guide is educational and is not personalized tax advice. The rules quoted are those in force in November 2026 for 2026 income, declared in 2027; box numbers may change with the year's forms.

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