French retiree pension tax rates compared with European Union countries, Digi Mart USA News (France): Are French retirees asked to contribute too much or too little? The question has returned to the table in recent weeks, particularly during budget debates.
In the government’s draft 2027 finance bill, retirees are specifically targeted, with the budget effort requested from them estimated at 5.5 billion euros. Economy Minister Roland Lescure considered this contribution “fair” and said retirees “could even be asked for a bit more.”
French pensions are on average withheld at 10.2%, yet retirees already pay substantial deductions. Like salaries, unemployment benefits and capital income, pensions are subject to three mandatory levies: the generalized social contribution (CSG), the contribution for repayment of the social debt (CRDS) and the additional solidarity contribution for autonomy (Casa).
However, not all retirees pay these levies at the same rate, as there are four rates depending on income: zero for 29% of retirees, 4.3% for 15%, 7.4% for 27%, and 9.1% for 29%.
Income tax is also applied, and it varies widely depending on the total household income of retirees. No retiree in France pays exactly the same rate on their pension.
However, a report by the Drees (Directorate for Research, Studies, Evaluation and Statistics) published on October 27 gives an overall figure: in France, pensions and survivor pensions have an average withholding rate of 10.2%.
This compares with an average withholding rate of 14.5% in the European Union, according to the same report, which places France more than four points below the average. The average, however, covers very different situations from one country to another.
The Netherlands (26%), Denmark (24.5%) and Italy (20.8%) stand out with particularly high average rates, which the Drees attributes largely to relatively high income tax.
Many countries with economies comparable to France’s, including Belgium, Austria, Germany, Ireland and Sweden, have average rates between 15% and 20%. France, at 10.2%, sits at the same level as Spain and Poland, while Greece, Portugal and Cyprus withhold more than France from pensions.
Lower rates are found mainly in Eastern Europe: below 5% in Latvia, Estonia and Romania, and nearly zero in the Czech Republic, Slovakia, Hungary and Bulgaria.
