Hello, I am trying to understand how the French tax system works in practice, prior to our move to France. Our income is derived from an early retirement pension and bank interest received on savings. This is how I understand that income tax etc will be applied: Step 1 - Social Taxes calculated and applied: Applied to 95% of gross pension. Total = 7.1% (CSG = 6.6%, CRDS = 0.5% and PS = 0%), but allowance of 4.2% is deductable from income tax Applies to 100% of investment income: Total = 11% (CSG = 8.2%, CRDS = 0.5% and PS = 2.3%), but allowance of 5.8% is deductable from income tax Step 2 - CMU Health Tax calculated and applied: Applied to 90% of gross pension, but 100% of investment income. An allowance of 7,085 euros is deducted from the sum of these, and 8% is applied to the resulting figure. Step 3 - Income Tax is calculated and applied to net income: I've assumed that to calculate our net taxable income, we deduct 4.2% from the gross pension figure and 5.8% from the gross investment figure. The sum of these minus the 6,965 euro CMU allowance is our net household taxable income. We then divide this figure by 2 (there are just the 2 of us), and apply current tax rates to this figure. The household income tax liability is twice this amount.. I understand we need to have 'top up' medical insurance cover and review (with a financial advisor) our savings to maximise returns and minimise tax liabilities. Thank you for considering this!