Taux neutre: why an employer withholds tax at the default rate
When an employer uses the neutral withholding rate instead of a personal one, what determines it, and how it can be changed in the espace Finances publiques.
The neutral rate (taux neutre, also called taux par défaut) is the rate an employer uses to withhold tax without the employee's personal rate: when the person has never filed a return, when the tax authorities sent the rate late or not at all, or when the employee chose not to disclose it. It depends only on pay and ranges from 0% to 43% on the annual scale.
When the neutral rate applies
| Situation | Result | Source |
|---|---|---|
| No tax return has ever been filed | There is no personal rate, so the employer uses the neutral rate | service-public F34732 |
| The rate was not sent to the employer, or arrived late | The neutral rate is used | service-public F34732 |
| The employee chose not to disclose their personal rate | The employer uses the neutral rate (taux par défaut) | service-public F35894, F34732 |
| How high it is | From 0% to 43% on the annual scale (barème annuel), depending on the monthly withholding base | service-public F35894 |
| Changing the rate | Through the espace Finances publiques; the new rate applies no later than the 3rd month after the request | service-public F35894 |
How withholding works
Withholding at source (prélèvement à la source, PAS) means that part of a person's income tax is deducted from their pay every month. The employer applies a rate set by the tax authorities (administration fiscale) on the basis of the employee's most recent tax return. The rate is applied to taxable pay (montant net imposable), meaning pay after social security contributions and the deductible part of the CSG. The tax authorities send the rate to the employer every month, and the employer has 60 days to start applying it.
Why the neutral rate is used
No return, no personal rate
The personal rate (taux personnalisé) is worked out from the most recent tax return. Until a return has been filed there is nothing to base it on, so the employer uses the neutral rate. The same happens when the standard rate (taux de droit commun) has not reached the employer or arrives late.
Opting for the neutral rate
Employees can choose not to disclose their personal rate to their employer. The employer then uses the neutral rate, which is based solely on the pay it provides. Service-public warns that the neutral rate is higher than the personal rate in most cases. Where it is lower, the rules require the employee to pay the difference each month between the amount withheld and what would have been withheld at the personal rate.
How the neutral rate is set
The neutral rate depends on the monthly withholding base (base mensuelle de prélèvement), in other words the amount of pay, and on a grid set by the tax authorities. On the annual scale it ranges from 0% to 43%.
What can change the answer
- Filing a return. The rate is recalculated every year from the tax return, and the new rate applies from the September following the return.
- Asking for a change. Requests to stop using the neutral rate, or to lower or raise the rate, are made through the espace Finances publiques; the new rate applies no later than the 3rd month after the request. A lower rate can be requested if withholding at the lower rate would differ from withholding at the current rate by more than 5%.
- Married couples and PACS partners. Couples taxed jointly are each given an individualised rate (taux individualisé) automatically, but can opt instead for a single rate for the whole tax household (foyer fiscal).
Who can confirm
Service-public lists the tax information line (service d'information des impôts) on 0809 401 401, Monday to Friday from 8:30 to 19:00, except public holidays. Questions about an individual file go to the local tax office (service des impôts).
About Fiscly
For many newcomers, a neutral rate on their first payslip is their first encounter with French income tax, and nothing on the payslip explains where it came from. We went through this ourselves and built Fiscly for ourselves and for others who have moved here.
A questionnaire in six languages that ends with a step-by-step guide to the declaration.
This material is for general information and does not replace individual advice.
Fiscly is an educational tool to help you understand the French tax system. It is not a substitute for professional tax advice. Tax situations are individual — always verify with impots.gouv.fr or a qualified accountant (expert-comptable) for your specific case.