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A couple’s marital status affects the tax base, calculation, and payment of their taxes, whether it concerns income tax (IR), real estate wealth tax (IFI), or local taxes. These implications vary depending on whether the couple is married, in a civil partnership (PACS), or cohabiting (common-law union).
Couple and Income Tax: Married or PACS Couples
Joint taxation
Married couples or couples in a civil partnership (PACS) are subject to joint taxation as of the year of their marriage or the conclusion of their PACS. This applies to income received by each partner, as well as to the income of their children and any dependents (French General Tax Code, Art. 6.1, paras. 2 and 3).
As of 1 September 2025, the withholding tax rate for spouses or partners bound by a civil partnership (PACS) and subject to joint taxation is, unless the taxpayer opts otherwise, automatically individualized (French General Tax Code, Art. 204 E, as amended by Law No. 2023-1322, Art. 19).
Before that date, the withholding tax rate was applied jointly by default and could only be individualized upon request.
Exceptions to joint taxation
- The couple may opt for separate taxation of their income in the year of their marriage or the conclusion of their PACS. In this case, two individual tax returns must be filed with the tax authorities (Article 6.2 of the French General Tax Code).
This option does not apply where partners who have entered a PACS subsequently marry each other
Spouses may be taxed separately (Article 6.4 of the French General Tax Code), in particular: - when they are married under a separation of property regime and do not live under the same roof.
- when, in the context of legal separation or divorce proceedings, they have been authorized by the Family Court Judge (JAF) to reside separately.
- when, if one spouse has abandoned the marital home, each spouse has separate income.
What are the consequences of joint taxation?
- The tax base consists of the couple’s combined income, which may be disadvantageous for the spouse or partner who previously had little or no taxable income,
- Joint taxation gives rise to joint and several tax liability (French General Tax Code, Art. 1691 bis): the tax authorities may therefore claim payment of the full amount of tax from either spouse or partner, even if the income was earned by only one of them.
- In the event of the death of one spouse or partner, any tax remaining payable at the time of death constitutes a liability of the marital community or joint ownership and will be included in the estate liabilities for half of the amount. After the death, the surviving spouse or partner becomes personally liable for tax on their own income.
Couple and Income Tax: Cohabiting (Common-Law) Couples
Cohabiting partners do not constitute a joint tax household. Each partner is taxed separately on their own income (French General Tax Code, Art. 6).
Couple and Real Estate Wealth Tax (IFI)
IFI is payable by individuals whose net real estate assets exceed €1,300,000 as of 1 January of the tax year (French General Tax Code, Art. 964).
Married or PACS Couples
Married couples or couples in a civil partnership (PACS) are subject to joint assessment for IFI, as is the case for income tax (French General Tax Code, Art. 965, 1°). Only one return must be filed, regardless of the spouses’ or partners’ matrimonial property regime.
In principle, assets belonging to minor children are taxable in the name of the parent(s) who have legal administration of those assets.
Divorced or separated parents who jointly exercise parental authority may each declare half of the value of their minor children’s assets.
Good to know: Certain spouses may be taxed separately, in particular (French General Tax Code, Art. 964 and Art. 6.4 a and b):
• when they are married under a separation of property regime and do not live under the same roof.
• when, in the context of legal separation or divorce proceedings, they have been authorised by the judge to have separate residences.
Consequence of joint taxation: joint and several liability for payment of the tax
Spouses and partners in a civil partnership (PACS) are jointly and severally liable for the payment of real estate wealth tax (IFI). (CGI art. 1723 ter-00 B).
Good to know: In certain cases, it is possible to apply for relief from the payment obligation “where there is a marked disproportion between the amount of the tax debt and, at the date of the request, the applicant’s financial and asset situation, net of liabilities” (French General Tax Code, Art. 1691 II.2.c).
For cohabiting partners
Notoriously cohabiting partners (concubins notoires) are subject to joint assessment for IFI (CGI art. 964).
Good to note: Article 515-8 of the French Civil Code defines cohabitation (concubinage) as “a de facto union, characterized by a shared life displaying stability and continuity […]”. Case law adds a requirement of notoriety, meaning that the relationship must be public and known to others.
Couple and Local Taxes
Residence Tax
Residence tax is governed by Articles 1407 to 1414 B of the French General Tax Code. It was abolished for main residences as of 1 January 2023, but it remains payable for certain second homes or vacant dwellings.
The tax is assessed in the name of the persons who have use or enjoyment of the taxable premises, whether they are the owner, the usufructuary, or an occupant free of charge, etc.
Spouses and PACS partners
- The tax assessment concerns the couple, and only one tax notice is issued. Spouses and partners in a civil partnership (PACS) are jointly and severally liable for payment of the residence tax when they live under the same roof (French General Tax Code, Art. 1691 bis).
- Couples who do not live together generally pay their residence tax separately. The tax is assessed in the name of the persons who have, in any capacity whatsoever, use or enjoyment of the taxable premises (French General Tax Code, Art. 1408).
Cohabiting partners
- Where the second home belongs to both cohabiting partners (either as joint tenants under the lease or as co-owners in joint ownership), the residence tax is assessed in both their names.
- If the dwelling is owned by only one of the cohabiting partners, that partner alone is liable for payment of the tax.
• Unlike married couples or partners in a civil partnership (PACS), cohabiting partners are not jointly and severally liable for payment of the residence tax.
Couple and Property Tax
Property tax is governed by Articles 1380 to 1406 of the French General Tax Code. It is payable by the owner as at 1 January of the tax year.
There is no joint and several tax liability between spouses or between joint owners (partners or cohabiting partners).
Couple and Taxes in the Context of Gifts or Inheritance
Gifts between spouses or partners
Where a spouse wishes to make a lifetime gift to their spouse, gift tax (droit de mutation à titre gratuit) may be payable.
For the calculation of this tax, the recipient spouse benefits from a tax-free allowance of €80,724 (French General Tax Code, Art. 790 E), renewable every 15 years.
Any amount exceeding this allowance is taxed on a progressive scale ranging from 5% to 45%, in accordance with the rates set out in Article 777 of the French General Tax Code.
Good to note: It is important not to confuse lifetime gifts (donations between living persons), which result in an immediate transfer of ownership and are in principle irrevocable, with gifts between spouses (also known as “donations to the last surviving spouse”), which take effect upon the death of one of the spouses and may be revoked at any time.
Inheritance between spouses or partners
When one spouse or partner dies, the surviving spouse or partner is fully exempt from inheritance tax (droit de mutation à titre gratuit) (French General Tax Code, Art. 796-0 bis). This exemption applies regardless of the matrimonial property regime chosen and whether or not there is a will (or a gift to the last surviving spouse).
Gifts, inheritance and cohabitation
Any transfer (by lifetime gift or by will/legacy) between cohabiting partners is taxed at a rate of 60% (French General Tax Code, Art. 777), after a tax-free allowance of €1,594 (French General Tax Code, Art. 788, IV).