2026 French Finance Law Introduces Targeted Wealth Tax Measures Amid Business Leaders' Concerns

The 2026 French finance law, definitively adopted on February 2, 2026, introduces targeted tax provisions primarily affecting wealth holdings and business leaders, while maintaining continuity in personal taxation adjustments. The government decided against freezing the income tax scale or eliminating the 10% deduction on retirement pensions, instead opting to adjust income tax thresholds by an inflation rate of +0.9%, ensuring taxpayers’ brackets reflect the economic context.

Notably, the law upholds the differential contribution on high incomes targeting those earning above €250,000 annually (or €500,000 for couples), to guarantee a minimum effective tax rate of 20% on these incomes. Proposed amendments to replace the real estate wealth tax with a tax on unproductive wealth were ultimately excluded from the final legislation.

A significant focus of the 2026 finance law is on business leaders, with new measures requiring validation from the Constitutional Council. Prime Minister Sébastien Lecornu emphasized that these changes are crucial for combating tax optimization and securing legal certainty for economic actors. If approved, a 20% tax will be imposed on wealth holdings exceeding €5 million, specifically targeting certain luxury assets such as cars, yachts, and racehorses. Importantly, this tax excludes art, collectibles, and antiques from its scope.

Meanwhile, French business leaders are vocally expressing dissatisfaction, advocating for greater freedom and enhanced recognition in the economic landscape ahead of the 2027 presidential election. Their demands include better management of public funds and more accountable governance. This push reflects entrepreneurial concerns about current fiscal policies and a desire to influence the direction of France’s economic environment.

Overall, the 2026 finance law balances measured tax adjustments for individuals with targeted wealth provisions aimed at high-value assets, while stirring a notable response from the business community seeking reforms and more effective public financial management.