French social charges (CSG) on US dividends, interest and gains
How France's social charges (18.6% from 2026) apply to Americans' US dividends, interest and gains, the treaty question, and how to reduce them.
Updated · Expat Academy · Education, not advice
For most Americans retired in France, the biggest French bill isn't income tax at all. It's social charges (prélèvements sociaux) on the income from a taxable brokerage account.
The rates from 2026
| Levy | Rate from 1 January 2026 |
|---|---|
| CSG (contribution sociale généralisée) | 10.6% (up from 9.2%) |
| CRDS (debt repayment) | 0.5% |
| Solidarity levy | 7.5% |
| Total on dividends, interest and securities gains | 18.6% |
| Total on rental income, property gains and life insurance | 17.2% |
With the 12.8% flat income tax on investment income, that's 31.4% before any credit.
How they reach US income
- US Social Security, pensions, 401(k)s and IRAs: in practice, no social charges; the treaty credit is treated as covering them.
- Dividends and gains on US shares and funds: France credits its 12.8% income tax for US citizens. Whether the credit also covers CSG and CRDS is the open question. Since 2019 the two governments treat CSG and CRDS as income taxes for treaty purposes, which many advisers read as leaving only the 7.5% solidarity levy. Others charge the full 18.6%.
- US interest: taxed by France in full, 12.8% plus 18.6%. The US gives the credit, but only up to its own tax on that interest.
Why the US credit may not help
If your dividends are taxed at 0% or 15% in the US, the US can't credit French charges above that. So French social charges are often a real extra cost, not a wash.
The worked difference
Take a couple with $15,000 of US fund dividends and $5,000 of Treasury interest a year. Charged in full, social charges on both come to about 18.6% of $20,000, roughly $3,700 a year. If the treaty credit covers CSG and CRDS on the dividends, they'd pay 7.5% on the dividends and 18.6% on the interest, about $2,050. That one interpretation is worth around $1,670 a year to them, every year, which is why it belongs at the top of the list for your cross-border preparer.
Can you reduce them?
Often, yes: how your investments are arranged between accounts, and what you do before your French residence starts, both change how much of your income these charges reach. The right answer depends on your accounts and your US brackets, and some steps only work before the move. The France course's account comparison shows what each option is worth for you; see also tax planning before moving to Europe.
The health contribution (CSM)
A separate yearly charge of up to 6.5% on investment income above half the French social security ceiling (€24,030 (about $26,897 today) in 2026) applies to residents in the public health system with little earned income. Retirees drawing pensions are generally outside it, but the position for people whose only pensions are American isn't settled.
Questions
What is the social charges rate in France in 2026?
18.6% on dividends, interest and securities gains from 1 January 2026 (CSG 10.6%, CRDS 0.5%, solidarity levy 7.5%), and 17.2% on rental income, property gains and life insurance.
Do Americans in France pay social charges on US Social Security and pensions?
In practice no. The French forms' instructions treat the treaty credit on US pensions and Social Security as covering social charges.
Are US citizens exempt from CSG on US dividends?
It depends on a reading of the treaty. Since a 2019 understanding between the two governments, CSG and CRDS are treated as income taxes for treaty purposes, which many advisers read as leaving only the 7.5% solidarity levy on US dividends and gains of US citizens. Others charge the full 18.6% in practice.
Does the EU exemption from CSG apply to people covered by US Social Security?
No. The reduced rate for residents covered by another EU, EEA or Swiss social security system doesn't extend to people covered by US social security.
Go deeper
- F4 Social charges (prélèvements sociaux): The 18.6% on investment income is the French tax the treaty may not remove. What it is, what it covers, the debate over the credit, and how to keep it down.
- F5 Each account in France, and the moves to make before you go: How France and the US tax a dollar from a pre-tax account, a Roth, an HSA and a taxable account, why the rates differ so much, and what to do while only the US taxes you.
Sources
- Prélèvements sociaux 2026 : 18,6 ou 17,2 % ?, Hagnere Patrimoine
- Hausse de la CSG sur les revenus du capital au 1er janvier 2026, Cerfrance
- The US-France tax treaty's hidden advantage for American retirees, IMI Daily
- Taxe PUMa 2026, Keobiz
Education, not advice. This guide explains general rules as of the date above. Rules change every year; confirm your own situation with a qualified adviser in the US and in France.