It is the kind of change that almost slips by unnoticed: no spectacular new tax law, no heated debate, just one line in the 2026 Social Security financing act. The CSG on income from movable capital went up by 1.4 points. As a result, France's "flat tax" is no longer 30%: it is 31.4% since January 1st, 2026.
A small change on paper. But if you invest through a regular brokerage account (CTO), receive dividends or hold crypto, this is your new default rate. Here is what changed, what didn't, and which trade-offs it shifts.
What exactly changed
The PFU (Prélèvement Forfaitaire Unique) has always had two components: 12.8% income tax and social charges. The second one moved: the CSG on movable capital went from 9.2% to 10.6%, taking total social charges from 17.2% to 18.6%.
12.8 + 18.6 = 31.4%. The income-tax part did not move.
Who is affected
2026 rates. A tax-advantaged share account held over five years escapes income tax but not social charges, now 18.6%. Property and life insurance stayed at 17.2%, which is why the last two lines look inverted.
All income from movable capital:
- dividends and interest (brokerage accounts, term deposits, bonds, non-regulated bank savings accounts);
- capital gains on securities in a CTO;
- crypto gains (the individual regime follows the same total);
- withdrawals from a PEA younger than five years, which remain taxed at the PFU.
Concretely: a €10,000 gain in a CTO now leaves you €6,860 net instead of €7,000. On €1,000 of dividends, €314 goes to tax instead of €300. Not dramatic, but on a sizeable portfolio compounding over years, those 1.4 points show.
Who is NOT affected
This is the subtlety most summaries miss: the CSG hike does not apply to all capital. Still at 17.2% social charges:
- real-estate capital gains;
- rental income;
- assurance vie (French life insurance);
- the PEL.
And of course the Livret A, LDDS and LEP remain at zero tax, zero charges. The lawmakers created a two-speed system: 18.6% for movable capital, 17.2% for property and life insurance.
The progressive scale becomes a real question again
The flat tax was never mandatory: every year you can opt for the progressive income-tax scale instead. With a more expensive PFU, that option mechanically gains appeal for lightly taxed households.
The orders of magnitude are the same as before, the cursor just moved:
- Marginal rate 0% or 11%: the progressive scale almost always wins, especially for dividends, which then get a 40% allowance (plus partially deductible CSG).
- Marginal rate 30% and above: the flat tax remains the better option in the vast majority of cases.
Mind the classic trap: the option is global. It applies to all your movable-capital income for the year, not line by line. You cannot pick the scale for your dividends and the PFU for your gains.
The real message: tax wrappers are worth more than before
Every increase in the default rate raises the value of whatever escapes it. The gap between a plain brokerage account and the French wrappers just widened by 1.4 points overnight:
- A PEA older than five years exempts your gains from income tax: only social charges remain due. Against a CTO at 31.4%, the advantage has never been this clear.
- Assurance vie now stacks two advantages: its social charges stayed at 17.2%, and after eight years its annual allowance of €4,600 (€9,200 for a couple) plus a reduced rate.
If your PEA is not maxed out and you invest through a CTO out of habit, 2026 is a good year to ask the question again.
Where IgniFI comes in
All of IgniFI's calculations use the 2026 rates: passive-income projections, the withdrawal plan and the simulations apply 31.4% where that is the right rate, and 17.2% where that one still applies.
The default rate just went up. The best response is not to shrug: it is to know precisely what you pay, and to leave as little as possible to the default.