US taxes for Americans in France

Front-loaded answerFrance's treaty with the US is genuinely favorable: US pensions and Social Security are taxed only in the US, and most US-source passive income is exempt from French income tax. You still file a US return every year. The wrinkle is the 2026 PUMA/CSM healthcare contribution — a charge outside the treaty that can apply even when your French income tax is nil.

The treaty advantage for retirees

Under Article 18 of the US–France treaty, US government and private pensions and Social Security are taxable only in the US. France exempts that income from French income tax (it's still declared, and used to set your rate on any French-taxable income). For earned income, the FEIE excludes up to $130,000 (2025) / $132,900 (2026), and the Foreign Tax Credit handles French tax you do pay.

• !US pensions/SS: taxed only in the US — a rare and valuable treaty outcome
• !Active income and French-source income face high French rates plus social charges
• !The treaty covers income tax only — see the PUMA/CSM contribution below

The 2026 PUMA/CSM healthcare contribution

Watch outFrance's 2026 budget (LOI 2025-1403) created a participation financière for inactive residents whose passive income is exempt from French social charges under a treaty — exactly the position many American retirees are in. The CSM runs about 6.5% on worldwide passive income above a threshold (€24,030 in 2026, half the PASS) up to a high ceiling. It buys public-health (PUMA) access and is not an income tax, so the treaty doesn't shield it.

FBAR & FATCA

Frequently asked

What is the new 2026 healthcare contribution in France?

France's 2026 budget added a PUMA/CSM contribution (~6.5%) on the worldwide passive income of inactive residents whose income is treaty-exempt from French social charges — over a €24,030 threshold. It funds public-health access and, because it's a healthcare charge rather than income tax, it falls outside the US–France treaty's protection.