Capital gains on securities: French tax rules for 2026

The sale of shares, fund units, or bonds generates a taxable capital gain when the sale price exceeds the acquisition price. The applicable tax regime depends on the chosen taxation method and the nature of the securities sold.

The flat tax (PFU)

Since 2018, capital gains on securities are subject by default to the flat tax (prélèvement forfaitaire unique, PFU). For 2025 income (declared in 2026), the overall rate is 31.4%:

• 12.8% income tax
• 18.6% social levies (CSG 10.6% + CRDS 0.5% + solidarity levy 7.5%)

The CSG rate was raised to 10.6% on investment income and securities capital gains from 2025 income onwards (LFSS 2026, art. 12).

The net capital gain is calculated as follows: sale price less acquisition price and costs (commissions, fees, notarial charges).

The option for the progressive scale

The taxpayer may opt for taxation under the progressive income tax scale. This option is global: it applies to all investment income and capital gains for the year.

New in LF 2026: the irrevocable nature of this option has been removed for 2026 income onwards (LF 2026, art. 126; CGI art. 200 A). For the 2026 filing (covering 2025 income), the option remains irrevocable: once elected, it applies to all investment income and capital gains for the year.

The option for the progressive scale allows, for securities acquired before 1 January 2018, the use of holding period allowances.

Holding period allowances (securities acquired before 2018)

These allowances apply only if the progressive scale option is elected. They do not apply to social levies.

Standard allowance:
- 50% for a holding period of 2 to 8 years
- 65% for more than 8 years

Enhanced allowance (SMEs less than 10 years old at the date of acquisition):
- 50% between 1 and 4 years
- 65% between 4 and 8 years
- 85% after more than 8 years

Offsetting losses

Losses for the year are offset against capital gains of the same nature. The excess of losses can be carried forward for 10 years against future capital gains of the same nature.

Losses cannot be offset against other categories of income.

Special cases

PEA (personal equity savings plan)

Capital gains realised within a PEA are exempt from income tax after 5 years of holding the plan. Social levies remain due.

Sales of shares in unlisted companies

The regime is identical to listed securities. Valuation of the acquisition price may require precise supporting documents, particularly for old securities or those acquired through inheritance.

Filing

Annual net capital gains are reported on form 2042. If the progressive scale option is elected, form 2042C is also required. The annual tax statement (IFU) provided by the financial institution summarises the year's disposals — historical acquisition prices may sometimes be incorrectly stated for old securities.

A return with several options

Filing capital gains on securities involves choosing between the flat tax and the progressive scale, accounting for carried-forward losses, and using several forms depending on the situation. Filing options have different consequences depending on the household's overall tax situation.

Fidencia.tax handles the filing logic: taxation method, applicable allowances, loss carry-forward, correct forms.

File your disposals accurately — fidencia.tax

This article is provided for informational and educational purposes only. It does not constitute tax, legal, or financial advice. The rules presented are general in nature and may not apply to your personal situation. Consult a qualified professional (chartered accountant, tax lawyer, wealth management adviser) for any tax decision. Fidencia.tax is a filing assistance tool and does not replace professional advice.

Legal references: CGI articles 150-0 A to 150-0 F, 200 A (as amended LF 2026 art. 126), 158 7° bis; 2026 DGFiP Income Tax Guide pp. 61-62.