French Taxes
Income Tax: Tax is calculated on the total income of the fiscal household (including income from a spouse, children under 18, and in some cases adult children, too).  Tax is calculated at progressive rates to a top rate of 53.25% (on incomes in excess of $49,365).

Sales Tax: Standard VAT is 19.6%, but lower rates apply in a number of cases, e.g. 5.5% VAT is levied on some foods, farm products, books, hotels, public transportation, and certain leisure activities.

Rental Income Tax: Whether you reside in France or not, you will be liable for tax on any rental income earned from your French property.  This is levied at regular income tax rates.

Property Tax: The amount of property tax depends on the type of residence and location.  For example, a village house in rural Provence is currently being levied $412 per annum for taxes, water, and waste disposal.  A large house in Toulouse is being taxed at $825.

U.S. Tax Information
Internal Revenue Service
P.O. Box 920
Bensalem, PA 19020
(215) 516-2000 (not toll-free)
www.irs.gov

Phone service available from 6:00 am to 11:00 pm (EST) M-F

The Internal Revenue Service (IRS) office serving France is located in Philadelphia, and provides U.S. Federal tax assistance to Americans in France.

The IRS Home Page has a lot of information available to answer many questions. Go to ‘Individuals’ and then ‘Overseas Taxpayers’ you will find a section of FAQ, which will take you to IRS Publication 54. Many questions of overseas taxpayers can be answered from that source.

One point to remember for all overseas taxpayers is that the United States taxes its citizens on their worldwide income. Even though they may be eligible to exclude a certain amount of their earned income from their income tax computation, they must file a US tax return in order to claim that exclusion.