Self-Employed Tax in France

What is the micro-entrepreneur (auto-entrepreneur) regime?

The micro-entrepreneur regime -- formerly called auto-entrepreneur and rebranded in 2016 -- is France's simplified entry-level structure for sole traders and independent professionals. It is administered by URSSAF and the Direction Generale des Finances Publiques (DGFiP). To qualify in 2025, annual turnover (chiffre d'affaires) must not have exceeded EUR 188,700 for the sale of goods, catering, or accommodation (BIC commercial) or EUR 77,700 for the supply of services (BIC artisanal or commercial) and liberal professions (BNC) in either of the two preceding years [1]. A key advantage is that social contributions and, optionally, income tax are calculated as a flat percentage of gross turnover -- no accounting for actual costs is required under the micro-fiscal system.

All businesses and self-employed workers operating under the micro-entrepreneur regime are required to declare their turnover monthly or quarterly via the official URSSAF portal at autoentrepreneur.urssaf.fr, even if turnover is nil. The declaration triggers automatic calculation and collection of URSSAF social contributions [1].

How are URSSAF social contributions calculated?

URSSAF social contributions under the micro-social regime are levied on gross declared turnover, not on net profit. This is the defining feature of micro-social compared to the regime reel, where contributions are assessed on actual profit. For 2025, the rates confirmed by URSSAF are as follows [1][2]:

Note: the BNC regime-general rate increased from 23.1% to 24.6% on 1 January 2025 as part of a three-year phased increase (23.1% from July 2024, 24.6% in 2025, 25.6% from January 2026) designed to strengthen supplementary pension entitlements for micro-entrepreneurs [2]. These rates do not include the professional training contribution (CFP at 0.1%-0.3%) or chamber fees (TFC), which add a small fraction on top.

What is the versement liberatoire and when does it apply?

The versement liberatoire de l'impot sur le revenu is an optional mechanism allowing micro-entrepreneurs to pay income tax at a flat percentage of turnover at the same time as URSSAF contributions, rather than under the standard annual progressive income tax declaration [3]. Eligibility requires that the household's revenu fiscal de reference (reference fiscal income) for year N-2 did not exceed EUR 28,797 per tax share (1 share for a single person, 2 shares for a couple) -- approximately EUR 28,797 for a single filer and EUR 57,594 for a couple filing jointly in 2025 [3].

When elected, the additional versement liberatoire rates applied to gross turnover are:

• 1.0% for sale of goods, catering, and accommodation (BIC commercial)
• 1.7% for artisanal or commercial services (BIC services)
• 2.2% for liberal professions (BNC)

Electing the versement liberatoire means income tax is settled in real time with each monthly or quarterly declaration. For a BNC consultant with EUR 60,000 turnover under the versement liberatoire, the combined annual outgoing is approximately EUR 14,760 in URSSAF contributions (24.6%) plus EUR 1,320 in flat income tax (2.2%), totalling roughly EUR 16,080 -- about 26.8% of turnover. A qualified tax professional can assess whether the versement liberatoire or standard progressive taxation produces a lower net liability for a given household situation.

What is the difference between micro-fiscal and micro-social?

The micro-entrepreneur regime operates two distinct simplification layers that are often confused [3]:

• Micro-social: Social contributions assessed on gross turnover at the flat URSSAF rates above, rather than on actual profit. Applies automatically to all micro-entrepreneurs.
• Micro-fiscal: Income tax assessed using a flat notional abatement (abattement forfaitaire) rather than actual expenses. Abatement rates are 71% for goods/accommodation, 50% for BIC services, and 34% for BNC liberal professions. Taxable income equals turnover minus abatement, then subjected to the standard progressive income tax scale. Applies unless the versement liberatoire is elected.

A micro-entrepreneur can therefore be subject to micro-social (always) while choosing between micro-fiscal taxation (standard progressive barème on abated income) or versement liberatoire (flat rate on gross turnover). The two systems produce materially different outcomes depending on actual costs, household income, and the applicable marginal progressive rate.

When must a self-employed person move to the regime reel (BIC/BNC actual profit)?

Once turnover exceeds the micro-entrepreneur ceilings in two consecutive years, the business exits the micro regime and must file under the standard regime reel: regime reel simplifie for turnover up to certain thresholds, or regime reel normal above. Under the regime reel, actual revenues and deductible expenses are accounted for, and taxable profit (benefice) is declared annually [4].

Taxable profit under the regime reel is added to the household's total income and subjected to the progressive barème de l'impot sur le revenu, which for the 2026 tax year (applicable to 2025 income, indexed at +0.9%) stands at:

• 0% on income up to EUR 11,600 per part fiscal
• 11% from EUR 11,601 to EUR 29,579
• 30% from EUR 29,580 to EUR 84,577
• 41% from EUR 84,578 to EUR 181,917
• 45% above EUR 181,917 [5]

The quotient familial system divides household income by the number of fiscal parts (1 for single, 2 for a couple, 0.5 per dependent child up to two children, 1 per additional child), applies the progressive scale per part, then multiplies back. This can materially reduce the marginal rate for households with dependents. Social contributions under the regime reel are calculated on actual net profit by URSSAF, at rates that differ from the flat micro-social percentages.

What are the TVA franchise thresholds for micro-entrepreneurs?

Micro-entrepreneurs operating below the TVA (value added tax) franchise en base thresholds do not charge TVA on their invoices and cannot recover input TVA. As of 1 January 2025, the franchise thresholds were revised [6]:

• EUR 85,000 for the sale of goods, catering, and accommodation (tolerance threshold EUR 93,500)
• EUR 37,500 for the supply of services and liberal professions (tolerance threshold EUR 41,250)

Invoices issued under franchise en base must include the mandatory mention "TVA non applicable -- art. 293 B du CGI". When turnover exceeds the tolerance threshold mid-year, TVA liability begins immediately from the day of the overage. Micro-entrepreneurs close to the TVA franchise threshold for services (EUR 37,500) should note that this is considerably lower than the micro-entrepreneur turnover ceiling (EUR 77,700), meaning it is possible to remain within the micro regime while becoming liable for TVA.

What is the CFE (Cotisation Fonciere des Entreprises)?

The Cotisation Fonciere des Entreprises (CFE) is a municipal business tax levied annually on self-employed workers and businesses in France [7]. It applies to micro-entrepreneurs with limited exceptions:

• Year of creation: fully exempt regardless of turnover
• Year following creation: 50% reduction of the CFE tax base
• Permanent exemption: if annual turnover or income in year N-2 did not exceed EUR 5,000

Beyond the first two years, CFE amounts are set by the local municipality and vary based on prior-year turnover. For 2025-2026, minimum CFE amounts range from approximately EUR 250 to EUR 2,500 for micro-entrepreneurs working from a home address, depending on the commune and the applicable turnover bracket. CFE is declared via an initial declaration (Form 1447-C-SD) filed by 31 December of the year of creation, and paid annually -- in full by 15 December if CFE does not exceed EUR 3,000, or in two instalments if it exceeds that amount [7].

For a full picture of your obligations as a self-employed worker in France -- including choosing between micro-social and regime reel, assessing the versement liberatoire, and managing TVA registration -- consult a qualified tax professional, such as an Expert-Comptable registered with the Conseil National de l'Ordre des Experts-Comptables. For a broader view of the French tax environment, see the France country overview.