KEY MEASURES FOR INDIVIDUALS
1. Inflation-adjusted income tax scale
The law increases the income tax scale by +0.9% to prevent inflation from artificially pushing taxpayers into higher tax brackets. This effectively reduces the amount of tax payable for many households.
2. Maintenance of the pension allowance
Contrary to initial plans, the 10% reduction on retirement pensions will remain in place. This means that pensioners will continue to benefit from this significant tax reduction on their income, thereby protecting their purchasing power.
3. Differential contribution on high incomes
The differential contribution – a tax designed to guarantee a minimum tax rate of 20% for the wealthiest households – has been renewed. It applies in particular to :
- single people whose reference taxable income exceeds €250,000
- couples whose reference taxable income exceeds €500,000
This measure aims to strengthen tax fairness in a context of budgetary constraints.
4. Tax on asset-holding companies
A new tax on asset-holding companies is being introduced :
- It applies to the value of certain non-business luxury items (yachts, classic cars, jewellery, etc.).
- The following are excluded: cash, financial securities and active shareholdings.
- The rate is 20% for financial years ending after 31 December 2026.
The aim is to increase taxation on high-value assets often used for optimisation purposes.
5. Tax on small imported parcels
To protect local trade, a tax of €2 per parcel is being introduced on low-value items (less than €150) imported from outside the European Union.
6. Dispositif Relance logement
This new scheme aims to stimulate the private rental market over three years :
- It applies to new or renovated properties up to 30% of the cost price.
- To benefit from this, the landlord must rent the property for nine years with rent caps.
- In return, they can deduct part of the following from their property income :
- purchase price (up to €12,000/year)
- rental-related expenses (renovation work, loan interest, property tax)
This offers an attractive tax framework for investing in rental housing.
7. Social assistance and consumption
The law re-evaluates several social benefits in line with inflation (+0.9%) from 1 April 2026 :
- RSA (Revenu de solidarité active, or Active Solidarity Income) will amount to €653.33 per month.
- AAH (Allocation aux adultes handicapés, or Adult Disability Allowance) will amount to €1,042.62 per month.
- APL (Aides personnelles au logement, or Personal Housing Assistance), depending on the household’s situation.
- Family allowances depending on the household’s situation.
In addition :
- the activity bonus will be increased by approximately €50 per month
- student meals will be available for €1 in university restaurants
- several assistance schemes (MaPrimeRénov’, MaPrimeLogement, Loc’Avantages, etc.) will be reopened after their suspension due to budget delays
8. Doubling of the ceiling for the ‘Coluche’ tax reduction
The 2026 Finance Act strengthens the incentive to donate by doubling the ceiling for the ‘Coluche’ tax reduction. The ceiling rises from €1,000 to €2,000 per year, while maintaining a tax reduction rate of 75%.
Example: a donation of €2,000 will now entitle the donor to a tax reduction of up to €1,500.
The measure applies to donations made from the end of 2025 onwards, for the 2026 tax return.
9. Driving licence
Funding for the licence via the CPF is now strictly reserved for job seekers or employees with third-party funding. Financial assistance for apprentices has been discontinued.
KEY MEASURES FOR BUSINESSES
1. Special levy on large companies
The law renews the exceptional contribution on profits for 2026, targeting groups with turnover exceeding:
- €1.5 billion — rate of 20.60%
- More than €3 billion — rate of 41.20%
This mechanism aims to make major economic players contribute more to reducing the deficit.
2. Phasing out of the CVAE
The Business Value Added Tax (CVAE) will continue to be phased out gradually until 2030. This change reduces the local tax burden on businesses, particularly SMEs and micro-enterprises.
3. Transmission d’entreprise : réforme du Pacte Dutreil
The 2026 Finance Act adjusts the Dutreil Pact, a key mechanism that allows for a 75% exemption from transfer duties when selling or donating a family business.
Two major changes :
- Exclusion of ‘non-professional’ assets (luxury goods, housing not used for business purposes, works of art, passenger vehicles, jewellery, etc.) from the base eligible for exemption
- Extension of the individual commitment period for retaining securities from 4 to 6 years
This reform mainly targets large family businesses. The impact remains limited for the majority of SMEs and micro-enterprises, but nevertheless requires a review of current or future transfer plans.
4. Crédit d’impôt pour l’industrie verte (C3IV)
This tax credit has been extended until 2028 to encourage green investments. Certain rules have been adjusted to remain compliant with European standards.
5. Exonération des pourboires
The exemption for tips paid to employees in direct contact with customers will continue until 2028 if these employees earn less than 1.6 times the minimum wage. This facilitates flexible remuneration for employees in the hotel, catering and service industries.
REMEMBER
The 2026 Finance Act is based on a balanced approach: controlling public finances on the one hand, while maintaining targeted support on the other.
For individuals, the aim is to protect purchasing power in the face of inflation, while increasing the contribution of high earners and certain large estates. Housing-related measures and social revaluations are the main levers of support.
For businesses, the trajectory combines the gradual reduction of certain charges (CVAE), support for strategic and ecological investment, but also the tightening of tax measures deemed to be overly optimised, particularly in terms of wealth transfer and structuring.
This article was written in February 2026 by the tax department.
