France Corporate Tax Calculator 2026 — Impôt sur les Sociétés

Calculate Impôt sur les Sociétés (IS) at the standard 25% rate, with a reduced 15% rate for SMEs on the first €42,500 of taxable profit. Includes indefinite loss carryforward rules and automatic SME eligibility check based on turnover.

How French corporate tax (IS) works in 2026

France applies Impôt sur les Sociétés (IS) at a standard rate of 25% on taxable profits. Small and medium enterprises (SMEs) benefit from a reduced rate of 15% on the first €42,500 of profit, provided their turnover is below €10 million and other conditions are met. Losses can be carried forward indefinitely: the first €1 million of taxable profit is fully offset by available losses, and 50% of the excess profit (above €1M) can be offset each year.

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France Corporate Tax Calculator 2026 — Impôt sur les Sociétés

Calculate French corporate tax (IS) at 25% standard rate with 15% reduced rate for SMEs on first €42,500 profit. Includes loss carryforward.

Net Profit After Tax179 250,00 €
Total IS (Corporate Tax)20 750,00 €
Reduced Rate Portion (15% on first €42,500)6 375,00 €
Standard Rate Portion (25%)14 375,00 €
Effective Tax Rate10.4%

Calculation Breakdown

1. Taxable Profit: 200 000,00 €
SME Status: Yes
2. Loss Carryforward:
First €1M offset (full): 100 000,00 €
Above €1M offset (50%): 0,00 €
Remaining losses c/f: 0,00 €
Taxable After Loss Offset: 100 000,00 €
3. Reduced Rate (15%): 42 500,00 € × 15% = 6 375,00 €
4. Standard Rate (25%): 57 500,00 € × 25% = 14 375,00 €
Total IS: 20 750,00 € (10.4% effective rate)

Tax Breakdown

Effective Tax Rate at Different Profit Levels

Understanding your results

Impôt sur les Sociétés (IS) is the French corporate income tax. The standard rate is 25% for all companies. SMEs (turnover < €10M, capital fully paid, ≥75% owned by individuals) pay 15% on the first €42,500 of taxable profit and 25% on the remainder. The social solidarity contribution (Contribution Sociale sur l'IS) was abolished from 2025, and the CVAE (Cotisation sur la Valeur Ajoutée des Entreprises) was also eliminated from 2025, reducing the overall tax burden on French businesses.

SME eligibility criteria

To qualify for the reduced 15% rate on the first €42,500 of profit, a company must meet all four conditions: (1) turnover below €10 million, (2) share capital fully paid up, (3) at least 75% owned directly or indirectly by individuals, and (4) year-2 turnover does not exceed €7.63 million. The calculator checks condition (1) automatically based on your input.

Loss carryforward rules

Tax losses can be carried forward indefinitely in France. However, for large companies, the annual deduction is capped: the first €1 million of taxable profit is offset fully by losses, and only 50% of the remaining taxable profit (above €1M) can be offset in any given year. This cap does not apply to SMEs. The calculator applies the standard cap rules for all companies.

Tax rates history — recent reforms

The standard IS rate has been progressively reduced from 33.33% (pre-2017) to the current 25%. The reduced SME rate has remained at 15% on the first €42,500 of profit. The social solidarity contribution (3.3% of IS) was abolished from fiscal year 2025, and the CVAE (a local value-added tax on turnover) was also eliminated from 2025, significantly reducing the overall French tax burden on businesses.

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