French PER Retirement Plan Calculator: Tax Savings

French PER: tax saving by marginal rate and tax at withdrawal

Each euro paid into a French retirement savings plan (PER) and deducted from taxable income saves you your marginal tax rate (TMI): €300 per €1,000 paid in at 30%. In return, when you withdraw a lump sum, contributions are taxed at your retirement marginal rate and gains at 31.4% since 2026. The tool quantifies both sides of this trade-off.

What the tool calculates

• Upfront saving = contributions × current marginal rate.
• Capital at retirement = initial deposit and monthly payments compounded monthly at the annual return net of fees ÷ 12.
• Tax on a lump-sum exit = contributions × retirement marginal rate + gains × 31.4% (12.8% income tax + 18.6% social levies).
• Net tax gain = total upfront saving − tax on the contribution part.

Example

Age 35, €5,000 initial deposit then €300 a month until 64 (29 years), 4.5% return, 30% marginal rate today and 11% in retirement. In year one, €8,600 paid in cuts tax by €2,580 (real effort €6,020). Over 29 years, €109,400 of contributions grow to €232,689, of which €123,289 are gains. At exit: €12,034 of tax on contributions and €38,713 on gains, leaving €181,943 net. The net tax gain from the trade-off is €20,786. As an annuity, the tool shows about €814 a month (fixed 4.2% conversion rate).

What the tool does not check

• The deduction ceiling: every contribution is assumed deductible.
• Bracket creep: a large lump sum taken in one year can push you into a higher bracket.
• The real annuity rate, set by the insurer from your age and options.

These are French tax rules and the result is an estimate, not a substitute for advice from a financial adviser.

Sources and dates: service-public.gouv.fr guide on the PER, checked on 12 October 2026: 2026 ceiling of 10% of 2025 earned income, capped at €37,680 with a €4,710 floor (based on the 2025 social security ceiling of €47,100), unused allowances carried forward 5 years, deduction limited to payments made before age 70 since 1 January 2026; gains taxed at 31.4% since 1 January 2026 after social levies rose to 18.6% under the 2026 social security financing act (checked on 14/10/2026).

Frequently Asked Questions

How much can I deduct with a French PER in 2026?

For an employee, the 2026 ceiling is 10% of 2025 earned income net of professional expenses, capped at €37,680 with a €4,710 minimum. Unused allowances from 2026 onwards carry forward for 5 years, and your personal figure appears on your tax notice. The tool assumes all your contributions are deductible.

Is a PER worth it with an 11% marginal tax rate?

The saving is only €110 per €1,000 paid in. If your rate stays at 11% in retirement, the tax paid at exit on contributions exactly offsets the upfront saving: the tool then shows a net tax gain of zero, and the only benefit left is having deferred the tax.

How is a lump-sum PER withdrawal taxed?

If your contributions were deducted, the matching share is taxed at the progressive income tax scale, with no social levies and no 10% allowance. Gains are subject to the 31.4% flat tax (12.8% income tax plus 18.6% social levies) since 1 January 2026.

Can PER contributions still be deducted after age 70?

No. Since 1 January 2026, only contributions made before age 70 are deductible from taxable income. You can keep paying into the plan after that age, but without any upfront tax saving.

Is this tool really free?

Yes, all tools on Kristools are 100% free and accessible without registration.

Is my data protected?

Yes. All processing is performed directly and securely inside your browser. No personal data is sent to our servers.