Income tax - How are the income from a life insurance contract taxed? - Contract signed since 26 September 1997

Verified 01 janvier 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.

Your situation

  • Contract signed since 26 September 1997
  • You recover your insurance following a layoff
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Premiums paid since September 27, 2017

Taxation depends on the age of your contract.

Contract under 8 years

The interest on your life insurance policies is taxed in 2 steps.

1. Upon payment, they shall be subject to a flat-rate non-liberating levy from 12.8% (unless you apply for exemption based on your reference tax income).

2. Interest is recorded on your tax return to be taxed by one of the following means:

Any surplus is returned to you.

You can apply to be exempted from flat-rate non-liberating levy if your reference tax income of the penultimate year is less than:

  • €25,000 if you are single
  • €50,000 for a married or former couple subject to joint taxation.

For income received in 2026, this is the reference tax income for 2024.

The application must be sent to the financial institution that pays you the income no later than November 30 of the year preceding the year of payment (November 30, 2026 for an exemption in 2027).

In general, the institution sends you a completed sworn form to return if you meet the conditions.

Contract over 8 years

The interest on your life insurance policies is taxed in 3 stages.

1. Earnings shall be subject to payment to a flat-rate non-liberating levy from 7.5% (unless you apply for exemption based on your reference tax income).

2. You must report these gains on your tax return after deducting the abatement next:

  • €4,600 for a bachelor
  • €9,200 for a couple.

Warning  

The allowance is granted for all life insurance contracts held by the same taxpayer.

3. Interest shall be charged at the following flat rates:

  • 7.5% for interest corresponding to premiums not exceeding €150,000
  • 12.8% for interest corresponding to premiums exceeding €150,000.

However, you can be taxed at progressive scale of income tax if you choose this option when filing your tax return

Any surplus is returned to you.

You can apply to be exempted from flat-rate non-liberating levy if your reference tax income of the penultimate year is less than:

  • €25,000 if you are single
  • €50,000 for a married or former couple subject to joint taxation.

For income received in 2026, this is the reference tax income for 2024.

The application must be sent to the financial institution that pays you the income no later than November 30 of the year preceding the year of payment (November 30, 2026 for an exemption in 2027).

In general, the institution sends you a completed sworn form to return if you meet the conditions.

Premiums paid before September 27, 2017

Taxation depends on the age of the contract.

Contract under 8 years

The interests of your life insurance policies under 8 years old can be taxed in one of 2 ways:

  • Or, at the time of their payment, flat-rate discharge from 15%, if you choose this global option at the time of payment
  • At the time of processing your tax return, progressive scale of income tax, if you have not opted for the flat rate when paying interest.
Contract over 8 years

The interests of your life insurance policies over 8 years of age can be taxed in one of 2 ways:

  • Or, at the time of their payment, flat-rate discharge from 7.5%, if you choose this option at the time of payment
  • At the time of processing your tax return, progressive scale of income tax, if you have not opted for the flat rate when paying interest.

You benefit from a abatement on these gains, the amount of which is as follows:

  • €4,600 for a bachelor
  • €9,200 for a couple.

Warning  

The allowance is granted for all life insurance contracts held by the same taxpayer.

The interest recovered may be exempt from tax in certain cases.

It depends on the reason you are asking for the redemption or termination of the contract:

The interests of life insurance are exempt income tax if the termination of the contract results from a dismissal.

Dismissal is accepted if you are one of the following:

  • The one who signed the contract
  • Spouse or partner of Civil partnerships: titleContent of the subscriber.

Warning  

The exemption does not apply in the event of a contractual breach or termination of a fixed-term contract.

The exemption applies if the redemption or termination of the contract occurs before the end of the year following that of the dismissal.

Example :

You are dismissed on May 5, 2026.

The repurchase or termination of the contract must take place no later than 31 December 2027.

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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