Although France has a higher tax rate than that of the United States, their taxes go for some really nice benefits. Like universal healthcare! Those new to France probably feel like pulling their hair out when trying to figure out French tax rates. It’s really not that hard once you get down the basics of the French tax system.

Interesting Fact! Social Security in France is not considered a tax since each payer to this system has the opportunity to use it.

The majority of French taxes are broken down into the following groups:

The sales tax in France in 19.6%. Unlike the US, sales tax is figured into the price of whatever you’re buying. For instance, if you see something marked at 25 euros, then that is the final cost… it already includes the tax in the price.

If you own a television in France, you must pay this yearly tax. The amount this costs rises each year to fund France’s four public television stations.

Whether you own the property you’re living in or not, you must pay habitation tax. It is determined by the size of the property, the location, and the family’s financial situation.

Everyone who owns property in France, must pay an annual property tax. This is calculated very similarly to that of the property tax in the US.

Petroleum in France is subject to both the VAT and TIPP. For a general idea of the tax on petroleum consider that France brought in 20 billion Euros from petroleum tax in 2008.

This is a tax on things such as the sales of real estate, inheritance tax, gifts, vehicle registration, etc. The tax varies per item, but for a general idea France brought in 14.7 billion Euros in this kind of tax in 2006.

In France, the standard annual tax rate for corporations is 33.1%. The taxable part of corporate income in France is calculated by figuring the difference between gross profit and costs plus deductions.