The French Tax Authority has published detailed guidance on the Differential Contribution on Higher-Income Households, clarifying its scope, calculation, payment obligations and extended application under the Finance Law for 2026.
France’s Tax Authority issued guidance on 30 June 2026 on the exceptional (differential) contribution on higher-income households, providing further details on the operation of the measure introduced by the Finance Law for 2025 and extended under the Finance Law for 2026.
The guidance explains which taxpayers are subject to the contribution, the circumstances in which it applies, how adjusted income is calculated, and the requirement to make an advance payment between 1 and 15 December of the relevant tax year.
Scope of the contribution
The Differential Contribution on High Incomes (CDHR) applies to individuals who are tax-domiciled in France and whose reference income exceeds EUR 250,000 for single, widowed, separated or divorced taxpayers, or EUR 500,000 for taxpayers subject to joint taxation, including married couples and civil partners.
The measure is intended to ensure that affected tax households pay a minimum tax rate of 20%. Where a household’s average tax rate falls below that level, a differential contribution becomes payable.
The average tax rate is determined by combining standard income tax, the exceptional contribution on high incomes (CEHR) and certain flat-rate withholding taxes before comparing the result with the taxpayer’s adjusted reference income.
Calculation and duration
According to the guidance, the reference income used for the calculation is based on the fiscal reference income defined under Article 1417 of the General Tax Code, with adjustments that exclude certain quotient rules, specific abatements and exempt income.
The guidance also outlines special rules for taking account of exceptional income and changes in a household’s family situation when assessing eligibility thresholds and calculating the final contribution.
Originally introduced as a temporary measure applying to income earned in 2025, the contribution has been extended by the Finance Law for 2026. It will remain in force until France’s general budget deficit falls below 3% of GDP.
Payment obligations
The published guidance confirms that taxpayers liable for the contribution must pay an advance instalment between 1 and 15 December of the relevant tax year.
It is organised into three main sections covering the scope and calculation of the contribution, the treatment of exceptional income, and reporting and payment obligations, providing taxpayers with detailed instructions on complying with the new rules.
