France’s law of December 24, 2018, instituting emergency economic and social measures, created a new median CSG rate of 6.6%, with 4.2% of that deductible, effective January 1, 2019. This median rate is in addition to the 3 pre-existing CSG rates (0%, 3.8%, and 8.3%) and is based on the taxpayer’s Reference Tax Income (“Revenu Fiscal de Référence”/ RFR).
These 4 rates, along with the income brackets to which they apply, appear in the guide to Compulsory pension withholdings in 2023.
- How is my CSG rate determined?
Like the other compulsory withholdings, your CSG rate is based on:
- Your Reference Tax Income (“Revenu Fiscal de Référence”/ RFR),
- The number of fiscal units (“parts”) in your household,
- Your tax residency.
These 3 factors appear on your notice of tax assessment.