US Expat Taxes in France (2026 Guide): What Americans Need to Know
US citizens and Green Card holders living in France generally need to file a US tax return if their worldwide income exceeds IRS filing thresholds.
However, most do not end up paying US tax because of tools like the Foreign Earned Income Exclusion and Foreign Tax Credit, which reduce or eliminate double taxation.
Aya Takriti, an IRS Enrolled Agent with 12 years of expat tax experience, specializes in US tax preparation, tax planning and tax advice for US citizens and Green Card holders living and working in France and the Middle East.
With fluency in French and Arabic, Aya is well-equipped to support Americans living in France and the Middle East, providing tax guidance in the language that makes clients feel most comfortable.
Schedule a consultation with Aya today*.
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How US taxes in France work in 5 steps
- Check if you need to file in the US: This depends on your worldwide income and filing status, not where you live.
- Determine whether France considers you a tax resident: If so, France may tax your global income.
- Report your worldwide income to the IRS: This includes salary, freelance work, investments, and rental income.
- Apply tax relief to avoid double taxation: Usually through the Foreign Tax Credit or the Foreign Earned Income Exclusion.
- File any additional reporting forms: This may include FBAR, Form 8938, and other disclosures depending on your situation.
Do you need to file US taxes in France?
Yes, if your income exceeds IRS thresholds. However, what matters is worldwide income, not just US income. That’s where many people get confused, assuming only US-source income counts, when in fact worldwide income is used.
US filing thresholds (2025 tax year)
| Filing status | Minimum income to file |
| Single | US$15,750 |
| Married filing jointly | US$31,500 |
| Head of household | US$23,625 |
| Married filing separately | US$5 |
| Self-employed | US$400 (net earnings) |
A few quick clarifications:
- You can live in Paris for 10 years and still have to file.
- Even if all your income is French, it still counts.
- If you’re self-employed, the threshold is much lower.
📢 Important! Filing does not automatically mean paying tax. Many expats file each year and owe nothing.
Do US expats also pay taxes in France?
If France considers you a tax resident, you’ll usually file there too. The US taxes based on citizenship, while France taxes are based on residency. That difference is what creates the overlap.
French tax residency tests
| Test | What it means |
| Home/primary residence | Your main home is in France |
| Principal place of stay | You spend most of your time in France |
| Professional activity | Your main job is in France |
| Economic interests | Your main income or assets are based in France |
Meeting just one of these may result in you being treated as a French tax resident. In practice, if you’ve moved to France for work or long-term living, you’re probably considered a resident. There are edge cases, but they’re less common.
Once you’re a resident, France taxes your worldwide income, similar to the US, but based on residency instead of citizenship.
Will US expats in France be taxed twice?
Usually no. But you still have to file in both countries. The US and France have rules in place to prevent double taxation, which often eliminates the actual tax overlap.
How double taxation is avoided
| Method | How it works | Best for |
| Foreign tax credit (FTC) | Uses French taxes paid to offset US tax | High-tax countries like France |
| Foreign earned income exclusion (FEIE) | Excludes up to US$130,000 of earned income | Lower-income expats |
France has relatively high income taxes. Because of that, many expats end up paying more tax in France than they would in the US. That difference becomes useful when applying the Foreign Tax Credit.
So while both tools exist, they don’t always work equally well in France.
FEIE vs foreign tax credit for Americans in France
You may not need to decide between these right away. However, if you want to optimize your tax position, the decision becomes more important. Whether you use the FEIE or the Foreign Tax Credit depends on your income level, the type of income you earn, and your long-term plans.
Comparison: FEIE vs foreign tax credit
| Feature | FEIE | Foreign tax credit |
| What it does | Excludes income from US tax | Offsets US tax using French taxes paid |
| Income limit | Up to US$130,000 (2025 tax year) | No limit |
| Best for | Lower-income expats | Higher-income expats in France |
| Passive income | Not covered | Covered |
| Flexibility | Limited once elected | More flexible |
You’ll often hear that “most expats should use the Foreign Tax Credit.” That’s often true in France, but not always. If your income is below the FEIE threshold and mostly earned income, the exclusion can still make sense.
On the other hand, if you have investments, rental income, or higher earnings, the credit tends to be more useful. So instead of relying on a single rule, it’s better to look at your income type and level to decide which approach works best.
What income do you report to the IRS?
You generally need to report all worldwide income to the IRS, regardless of where it was earned.
Common types of income to report
- Salary and wages from a French employer
- Freelance or self-employment income
- Rental income (in France or elsewhere)
- Dividends and investment income
- Interest from French bank accounts
- Pension income (with some nuances)
Even if that income has already been taxed in France, it still needs to be reported to the IRS.
This is one of those areas where people assume “already taxed” means “don’t report.” It doesn’t. Reporting and paying are two separate steps.
Make US taxes easier while living in France
Let our tax specialists guide you throughout the process.
Do you need to report French bank accounts?
Yes, if your total foreign account balance exceeds US$10,000 at any point during the year.
FBAR filing requirements
| Requirement | Details |
| Threshold | US$10,000 combined balance |
| Accounts included | Bank, savings, investment accounts |
| Form | FinCEN Form 114 (FBAR) |
| Deadline | April 15 (auto extension to October 15) |
FBAR is not a tax. It is a reporting requirement, but penalties for not filing can be significant.
Additional IRS forms you may need
Beyond FBAR, there are a few other forms that come up frequently. These depend on your income level, assets, and financial structure.
Common forms for US expats in France
| Form | When it applies |
| Form 8938 | Assets over US$200,000 on the last day of the year or more than US$300,000 at any time. (single filers) |
| Form 2555 | Claim FEIE |
| Form 1116 | Claim foreign tax credit |
| FBAR | Foreign accounts over US$10,000 |
Form 8938 is often confused with FBAR. They overlap, but they are not the same thing. The thresholds for Form 8938 are generally higher, especially for taxpayers living abroad.
Investing in France as a US expat
Some French investment funds are treated as Passive Foreign Investment Companies (PFICs) under US tax rules, which come with more complex reporting and often less favorable tax treatment. This includes:
- Foreign mutual funds
- ETFs
- Certain pooled investments.
Even if these investments are normal and tax-efficient in France, they can trigger additional reporting requirements, such as filing Form 8621, and less favorable tax treatment in the US.
Why does the US treat these differently?
The US created PFIC rules to prevent people from:
- Moving investments offshore
- Deferring tax
- Avoiding US tax altogether
So instead of treating foreign funds the same as US funds, the IRS applies a stricter set of rules.
US tax deadlines for expats in France
Federal tax return (Form 1040)
- April 15, 2026 (standard deadline)
- June 15, 2026 (automatic extension for expats)
- October 15, 2026 (additional extension with Form 4868)
- Form 2350 may apply if you need extra time to qualify for FEIE
FBAR (FinCEN Form 114)
- April 15, 2026, with an automatic extension to October 15, 2026
Trust-related forms
- Form 3520-A: due March 15 (if calendar-year trust)
- Form 3520: filed with your tax return, including extensions
State taxes
You may still need to file a state return depending on your ties to your last state (such as property, voter registration, or a driver’s license).
French pensions for US citizens
US citizens in France can participate in the French retirement system, including state pensions, employer plans, and private savings accounts. However, US tax treatment often differs from French rules.
French state pension (régime général)
- Built through mandatory contributions while working in France
- Pension income is reportable on your US tax return
- The US-France tax treaty often allows France to tax these pensions
- Even if the US tax is reduced, the income must still be reported
Employer-sponsored pensions
- Common in France and may receive favorable tax treatment locally
- The US does not automatically treat these like a 401(k)
- Tax treatment depends on the plan structure
- Some may allow deferral, while others may require current reporting
- Additional disclosures may apply
Private retirement plans (PER and similar)
- Offer tax advantages under French law
- Not automatically recognized as tax-deferred by the US
- Contributions may not be deductible in the US
- Growth or income inside the plan may be taxable annually
💡 Key takeaway: French pension plans are not always treated the same as US retirement accounts. While they may be tax-efficient in France, US reporting and taxation depend on the structure of each plan.
Self-employment taxes for US expats in France
If you’re self-employed in France, you usually pay into the French system, not the US self-employment tax.
US-France totalization agreement
| Situation | Result |
| Covered by the French system | No US self-employment tax |
| Covered by the US system | The US self-employment tax applies |
| Proof required | Certificate of coverage |
The key factor is the US-France totalization agreement, which determines which country’s social security system applies.
However, this is where documentation becomes important. A certificate of coverage is typically used to confirm which system applies.
What happens if you haven’t filed?
Some expats move abroad, assume they no longer need to file US taxes, and only realize later that they were still required to. The good news is that you may still be able to catch up without penalties.
Common catch-up options
- Streamlined Filing Compliance Procedures
- Delinquent FBAR submission
The streamlined program is available to taxpayers whose failure to file was non-willful, meaning they did not intentionally avoid their obligations.
These options are generally available before the IRS contacts you.
📌 Note:Eligibility also depends on meeting specific non-residency criteria and certification requirements (Form 14653).
Key takeaways
- US citizens must file US taxes even when living in France
- France may also tax you if you are a tax resident
- Double taxation is usually avoided through credits or exclusions
- Foreign account reporting rules often apply
- Many expats reduce or eliminate their US tax liability
Filing is usually required, but actual tax liability is often reduced or eliminated. Keeping that distinction clear helps avoid confusion.
Frequently Asked Questions
Do I still need to file US taxes if I pay high taxes in France?
Yes. Paying tax in France does not remove your US filing obligation. However, many expats use the Foreign Tax Credit to offset US tax, especially since French tax rates are often higher. In practice, this means you may file but owe little or nothing.
Are French taxes higher than US taxes?
Often, yes, especially for middle to higher income levels. France has progressive income tax rates and additional social charges. That’s one reason the Foreign Tax Credit tends to work well for Americans living in France.
Can I avoid US taxes by becoming a French citizen?
No. US tax obligations are based on citizenship, not residency. Becoming a French citizen does not remove your requirement to file US taxes unless you formally renounce US citizenship.
Do I need to file US taxes if I am retired in France?
Yes, in most cases. Retirement income, including pensions and investment income, is still reportable to the IRS. The tax treaty and foreign tax credits may reduce or eliminate US tax, but the filing requirement usually remains.
What if I move between the US and France during the year?
You may be considered a dual-status taxpayer for that year. This can affect how income is reported and which tax rules apply. It can also impact your eligibility for certain benefits like the FEIE.
Do exchange rates affect my US tax return?
Yes. All amounts on a US tax return must be reported in US dollars. The IRS generally requires using the exchange rate on the date income is received or expenses are paid. However, it accepts consistently used exchange rates, and some situations allow average rates.
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