A special income tax on high earners in France last year raised only a fraction of what the government had hoped for — partly because its late application gave taxpayers a chance to avoid it — and proceeds this year are again expected to be lower than budgeted.
The French finance ministry said that a so-called “differential contribution” applying to those earning more than €250,000 a year raised only €400mn for the 2025 tax year instead of the €1.9bn it initially projected. The tax was designed to ensure that such high earners paid at least 20 per cent of their income in tax.
For 2026, the tax is expected to raise €650mn, €1bn less than planned, the ministry said, creating a budgetary hole that the government has said will be filled with other taxes and spending cuts.