Income tax - How are the income of a person taxed?

Verified 01 January 2026 - Public Service / Directorate of Legal and Administrative Information (Prime Minister)

Income tax: 2026 income tax return for 2025

This page is up to date at 1er January 2026.

However, forms, online services and information materials are not yet available for the 2026 tax year of the 2025 tax return. They will be put online as soon as they are available.

In addition, the draft budget law for 2026 could not be promulgated before 1er January 2026.

The law n°2025-1316 of 26 december 2025 The Special Authorizes the Government to Collect Taxes, Without Modifying the Scales, Until the Adoption of a Budget Law for 2026.

If the Finance Law for 2026 changes the rules presented on this page, the content will be updated after the publication of the Finance Law in the Official Journal.

PEA is a savings product intended to be invested on the stock exchange.

Gains under the EAP (dividends, capital gains and other products) are exempt of income tax.

However, these gains are taxable in the 2 cases following:

  • Withdrawal from the PEA before 5 years
  • Income from unlisted securities held in the PEA.

The 5 years runs from the plan's opening date.

It corresponds to the date of your 1er payment.

The taxation of a PEA's income depends on the date of the withdrawals:

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No withdrawal or redemption

During the term of the AAP, the gains from investments made under the plan are not not taxable, provided that they are reinvested in the PEA.

However, the income of unlisted securities held in a PEA are exempt, each year, up to 10% the amount of these investments (i.e. the acquisition value of these securities).

Income above this limit is subject to a tax of 12.8% (and to social levies).

Withdrawal or redemption before 5 years

If you withdraw money from your PEA (withdrawal or redemption) before the 5 years of the savings plan, the net gain realized since the opening of the plan is imposed at the rate of 12.8%.

However, if you wish, you can opt for a global taxation on the progressive scale, if you choose this option when filing your tax return.

The net gain corresponds to the difference between the 2 amounts following:

  • Net asset value of the EAP at the date of withdrawal
  • The amount of payments made to the plan since its inception.

However, the early withdrawals benefit from a exemption of income tax in certain situations, in particular in the following cases:

  • Death of the Plan Holder
  • Allocation of funds to finance the creation or takeover of a company, subject to conditions.

FYI  

PEA earnings are subject to social levies (CSG, CRDS).

If you withdraw from your PEA before 5 years, the PEA is closed.

However, the closure of the plan does not take place under certain conditions.

This is particularly the case if you or your spouse (married or past) are in one of the following situations:

The declaration of gains corresponding to withdrawals made in 2025 is to be made in 2026 (in 2027 for gains corresponding to withdrawals made in 2026).

To make your tax return, you can consult the following documents:

If a pre-filled amount is inaccurate, you must correct or complete it.

Withdrawal or redemption after 5 years

If you withdraw money from your PEA after 5 years, the earnings from your PEA are exempt of income tax.

However, the income of unlisted securities held in a PEA are exempt, each year, up to 10% the amount of these investments (i.e. the acquisition value of these securities).

Income above this limit is subject to a tax of 12.8%.

However, if you wish, you can opt for a progressive scale taxation, if you choose this option when filing your tax return.

FYI  

PEA earnings are subject to social levies (CSG, CRDS).

You can make a total or partial withdrawal from your PEA, without it being closed.

The removal can also be done in the form of a life annuity.

When the plan is terminated, after 5 years, by the payment of a life annuity, the life annuity is exempt of income tax.

But the life annuity is subject to social levies (CSG, CRDS).

To make your tax return, you can consult the following documents:

If a pre-filled amount is inaccurate, you must correct or complete it.

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