Does the PFU rate change apply to dividends decided before 2026?

The rate that applies is generally the one in force when the dividend is paid, not when it is decided. Confirm the exact payment date with your accountant since it determines which rate applies.

Can I choose the PFU for some dividends and the barème for others in the same year?

No — the option for the progressive scale applies globally to all your capital income for the tax year, not on a distribution-by-distribution basis.

Do SASU and EURL dividends pay the same total tax?

Not necessarily. SASU dividends are only taxed under the PFU. EURL(IS) gérant-majoritaire dividends above 10% of the share capital also bear TNS social charges in addition to the PFU, which can raise the total cost.

Is the 40% allowance still available under PFU?

No. The 40% allowance only applies if you opt for the progressive income tax scale instead of the PFU. Under the PFU, dividends are taxed on their full amount at the flat 31.4% rate.

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Dividends & reserves6 min read

The flat tax (PFU) rises to 31.4% in 2026

Published July 20, 2026

Most dividends paid out of a French one-person company are taxed by default at the flat tax, the prélèvement forfaitaire unique (PFU). From 1 January 2026 that rate rose from 30% to 31.4%. Here is what changed, how it splits between income tax and social levies, and when the alternative — the progressive income tax scale with a 40% allowance — is worth choosing instead.

What the PFU is

The prélèvement forfaitaire unique is the default tax on dividends, interest and most capital income in France. It combines a fixed income tax rate with social levies (prélèvements sociaux), applied in a single flat percentage instead of the progressive income tax scale. It is meant to be simple: one rate, no scale brackets, no allowance to compute.

What changed on 1 January 2026

The PFU rose from 30% to 31.4% on 1 January 2026. The increase comes entirely from the social levies component: the CSG rose by 1.4 percentage points. The breakdown is now 12.8% income tax plus 18.6% social levies, versus 12.8% plus 17.2% before. On a €30,000 dividend, the extra 1.4 points represents €420 more in tax than under the previous 30% rate.

PFU on dividends: 31.4% from 1 January 2026 (was 30%)
Breakdown: 12.8% income tax + 18.6% social levies (was 17.2%)
Applies by default to dividends from a SASU or an EURL at IS
Also applies to most interest and capital gains on securities

For a SASU, dividends paid to the président are only taxed under the PFU — they escape social charges entirely beyond the 18.6% already included. For an EURL at IS, the picture differs for a gérant-majoritaire: the portion of dividends exceeding 10% of the share capital is also subject to TNS social charges, on top of the PFU. This distinction can materially change which structure and which payout mix — remuneration versus dividends — is more efficient.

The alternative: opting for the progressive scale

Instead of the PFU, a taxpayer can opt for the progressive income tax scale, which applies a 40% allowance on dividends before taxation, plus the social levies. This option applies to all of your capital income for the year, not dividend by dividend, so it needs to be evaluated globally. It tends to suit taxpayers whose marginal income tax bracket is low — the 11% or 0% bands — where the 40% allowance plus a lower marginal rate can beat a flat 31.4% run through PFU by default.

Frequently asked

Does the PFU rate change apply to dividends decided before 2026?: The rate that applies is generally the one in force when the dividend is paid, not when it is decided. Confirm the exact payment date with your accountant since it determines which rate applies.
Can I choose the PFU for some dividends and the barème for others in the same year?: No — the option for the progressive scale applies globally to all your capital income for the tax year, not on a distribution-by-distribution basis.
Do SASU and EURL dividends pay the same total tax?: Not necessarily. SASU dividends are only taxed under the PFU. EURL(IS) gérant-majoritaire dividends above 10% of the share capital also bear TNS social charges in addition to the PFU, which can raise the total cost.
Is the 40% allowance still available under PFU?: No. The 40% allowance only applies if you opt for the progressive income tax scale instead of the PFU. Under the PFU, dividends are taxed on their full amount at the flat 31.4% rate.

This article is general information for a one-person company (SASU/EURL or micro-entreprise), not tax advice. Rules and figures change — confirm your situation with your accountant before acting.