For US expats living in France, taxation can quickly become complex. France has its own system of income tax, social charges, and wealth taxes, which may apply to both residents and non-residents depending on their situation. Understanding whether you are considered a French tax resident is the key factor that determines if your worldwide income is taxable in France, or only your French-sourced income. Simply owning property in France does not automatically make you a tax resident, but spending significant time in the country or having your main home there often does.
Because US citizens must also continue to file tax returns with the IRS, the risk of double taxation is real. The France–US tax treaty and specific mechanisms like the Foreign Earned Income Exclusion (FEIE) and the Foreign Tax Credit (FTC) usually prevent Americans from being taxed twice, but they require careful application.
This is why professional cross-border tax advice is so valuable. With the right planning, expats can stay compliant in both countries, avoid costly mistakes, and take full advantage of treaty benefits.
Need expert help with US expat taxes in France?
From income tax and social charges to US filing obligations, our team at French Tax Online makes cross-border taxation simple. We help you determine your residency status, avoid double taxation, and file compliant returns in both countries.
👉 Contact us today for tailored, English-speaking advice and make your expat taxes stress-free.
Understanding French Tax Residency and System
The first step in understanding your obligations as an expatriate is to establish whether you are considered a French tax resident. Under French law, you may be treated as a resident if you fall into one of the following categories:
- France is your main home or habitual residence.
- You spend more than 183 days in France during a calendar year. (but you may be a French tax resident even if you spend less than 183 days a year!)
- Your principal professional activity is in France.
- Your main economic interests (investments, business, assets) are in France.
Once your tax residency status is determined, France will tax residents on their worldwide income. Non-residents, by contrast, are only subject to French tax on French-sourced income, such as rental income from property located in France or certain business activities. To help you clarify your own situation, French Tax Online offers a world-first French tax residency simulator — an exclusive tool that allows you to assess whether you qualify as a French tax resident in just a few minutes. Try the simulator here.
The French tax system covers several types of obligations:
- Income tax (progressive rates on worldwide or French-sourced income).
- Social charges (CSG/CRDS), which may apply to different types of income
- Wealth tax (IFI), which applies to French real estate holdings above a certain threshold.
- Property taxes for owners of French real estate.
Income categories subject to French taxation include salaries, pensions, self-employment profits, rental income, dividends, interest, and capital gains. These are reported annually through a French income tax return.
French income tax rates are progressive, starting at 0% and rising up to 45% for high earners. Tax returns are usually filed in May or June for the previous calendar year, with exact deadlines varying depending on your department of residence or online filing status.
Read further
How to Avoid Capital Gains Tax in France for non residents
UK Capital Gains Tax on Sale of French Property
US Expats in France: Dual Obligations
For American citizens, moving to France does not end their responsibilities to the IRS. US expats are required to file a US tax return every year, no matter where they live or how long they have been abroad. This obligation applies even if all of their income is earned in France.
At the same time, if you are considered a French tax resident, you must also declare your worldwide income to the French tax authorities. This creates a dual reporting requirement, with two sets of rules and deadlines to manage.
Beyond income tax returns, US expats are subject to additional reporting obligations:
- FBAR (Foreign Bank Account Report): required if the total value of foreign accounts exceeds $10,000 at any point during the year.
- FATCA (Foreign Account Tax Compliance Act): requires disclosure of foreign financial assets once certain thresholds are met.
Filing deadlines differ between the two countries. French tax returns are usually due in May or June for the previous calendar year, while US expats benefit from an automatic extension to June 15th (with the option to extend further to October 15th).
Avoiding Double Taxation
One of the biggest concerns for US expats in France is the risk of being taxed twice — once by the IRS and once by the French tax authorities. Fortunately, several mechanisms exist to prevent this.
The France–US income tax treaty defines which country has the primary right to tax certain types of income and allows taxpayers to claim relief in the other country. Similarly, the Social Security Totalization Agreement ensures that workers do not pay contributions twice and helps protect future pension benefits.
In practice, two key tools usually eliminate most US tax liability:
- The Foreign Earned Income Exclusion (FEIE), which allows expats to exclude a portion of earned income from US taxation.
- The Foreign Tax Credit (FTC), which provides a credit for income taxes paid to France.
These protections are especially relevant in common expat scenarios. Retirees may need to manage pension taxation, remote workers employed by US companies must ensure proper reporting in both countries, and property ownersrenting out French real estate face both French income tax and potential US reporting.
With careful planning, most US expats in France can avoid paying tax twice — but compliance requires attention to detail.
Common Pitfalls and Practical Solutions
Many expats in France run into problems not because of high tax rates, but because of avoidable mistakes. One of the most common is failing to declare foreign bank accounts. French residents are legally required to report all accounts held outside France, and penalties for omission can be significant.
Another frequent issue is misunderstanding residency rules. Spending more than 183 days in France or having your main home there usually makes you a French tax resident, even if you still consider yourself primarily based elsewhere. Incorrectly assuming you are a non-resident can lead to costly back taxes.
Social charges (CSG/CRDS) are often overlooked as well. These contributions apply to many types of income, including rental and investment income, and can come as a surprise to newcomers. They would apply as soon as the tax resident is also registered to the French health system (sécurité sociale) and becomes therefore a theorical cost to France.
To stay compliant and reduce your liability, it is wise to plan ahead. This includes not only structuring your income efficiently but also considering inheritance and estate planning, since French inheritance law and tax rules are strict. Working with a cross-border advisor ensures you use available allowances, avoid double taxation, and protect your assets.
FAQ: US Expat Taxes in France
Do I pay tax in both France and the US?
Yes. US citizens must always file a tax return with the IRS, even while living abroad. If you are a French tax resident, you must also declare your worldwide income in France. However, tax treaty provisions and credits usually prevent double taxation.
What if I live in France part-time?
If you spend fewer than 183 days in France and your main home and economic interests remain abroad, you may be treated as a non-resident for French tax purposes. In that case, only your French-sourced income (such as rental income from property in France) is taxable in France.
If you have a house in France, don’t forget that you’d still have to pay the taxes on it, such as the foncière, d’habitation and wealth tax, if applicable!
How are pensions taxed?
Most pensions received by US expats living in France remain taxable in the US under the France–US tax treaty. They must still be reported on both tax returns.
Do I still need to file in the US?
Yes. All US citizens and green card holders must file annual US tax returns, no matter where they live. In addition, you may have to file FBAR and FATCA reports if you hold foreign bank accounts or assets over certain thresholds.
Need expert help with US expat taxes in France?
From income tax and social charges to US filing obligations, our team at French Tax Online makes cross-border taxation simple. We help you determine your residency status, avoid double taxation, and file compliant returns in both countries.
👉 Contact us today for tailored, English-speaking advice and make your expat taxes stress-free.