2026 Income Tax Scale Freeze Hits Wealthy Paris Households Harder

The 2026 French budget introduces a freeze on the income tax scale that will lead to a modest increase of a few euros per month for hundreds of thousands of households nationwide. However, the impact is far more significant for wealthy taxpayers, particularly in Paris, where 24,300 affluent households will face an additional differential contribution on high incomes (CDHR). This new tax measure is integrated within the 2026 state budget, as detailed by Finance Minister Sébastien Lecornu.

Economy Minister Amélie de Montchalin emphasized that while the average household may experience only a slight rise in tax payments, wealthier groups will shoulder a markedly higher burden under the measure. In addition to the tax changes, the 2026 budget forecasts substantial hikes in prices for biofuels such as E85 and B100. These price rises of 40 to 50 cents per liter over the next three years result from reductions in previously granted tax advantages, potentially affecting transportation costs and living expenses.

Overall, the fiscal policy shifts highlight a progressive approach, aiming to balance minimal impact on lower-income households against increased revenue from high-income groups and environmentally impactful sectors. This strategy reflects the government’s dual objective of generating budget revenue while adjusting incentive schemes in green energy use.