Income tax - How is income from a life insurance contract taxed? - Contract signed since 26 September 1997
Verified 01 janvier 2025 - Directorate for Legal and Administrative Information (Prime Minister)
Income tax: 2025 income tax return for 2024
This page is up to date on 1er January 2025.
However, forms, online services and information materials are not yet available for the 2025 tax year of the 2024 tax return. They will be made available online as soon as they become available.
Moreover, the draft budget for 2025 could not be promulgated before 1er January 2025.
The law no. 2024-1188 of 20 december 2024 special allows the government to collect taxes, without changing the scales, until a 2025 budget law is passed.
If the 2025 budget changes the rules on this page, the content will be updated after the law is published in the Official Gazette.
Your situation
- Contract signed since 26 September 1997
- You get your insurance back after a layoff
Répondez aux questions successives et les réponses s’afficheront automatiquement
Premiums paid since September 27, 2017
Taxation depends on the age of your contract.
Contract under 8 years
The interest on your life insurance contracts is taxed in 2 stages.
1. When they are paid, they shall be subject to flat-rate levy without discharge of 12.8% (unless you are applying for an exemption based on your reference tax income).
2. Interest is recorded on your tax return for taxation by one of the following means:
- Flat rate of 12.8%
- Progressive Income Tax Schedule if you choose this global option when you file your tax return.
Any excess is returned to you.
Contract over 8 years
The interest on your life insurance contracts is taxed in 3 stages.
1. Earnings shall be subject on payment to a flat-rate levy without discharge of 7.5% (unless you are applying for an exemption based on your reference tax income).
2. You have to report these gains on your income tax return after deducting the abatement next:
- €4,600 for a single person
- €9,200 for a couple.
Warning
The allowance is granted for all life insurance contracts held by the same taxpayer.
3. Interest shall be charged at the following flat rates:
- 7.5% for interest corresponding to premiums not exceeding €150,000
- 12.8% for interest on premiums in excess of €150,000.
However, you may be required to progressive scale of income tax if you choose this option when you file your tax return
Any excess is returned to you.
Premiums paid before September 27, 2017
Taxation depends on the age of the contract.
Contract under 8 years
The interests of your life insurance contracts of under 8 years can be taxed in one of the following 2 ways:
- Or, at the time of payment, at the standard final levy of 15%, if you choose this global option at the time of payment
- Or, at the time of processing your tax return, at the progressive scale of income tax, if you have not opted for the flat rate when paying interest.
Contract over 8 years
The interests of your life insurance contracts older than 8 years can be taxed in one of the following 2 ways:
- Or, at the time of payment, at the standard final levy of 7.5%, if you choose this option at the time of payment
- Or, at the time of processing your tax return, at the progressive scale of income tax, if you have not opted for the flat rate when paying interest.
You benefit from a abatement on these earnings, the amount of which is:
- €4,600 for a single person
- €9,200 for a couple.
Warning
The allowance is granted for all life insurance contracts held by the same taxpayer.
Recovered interest may be exempt from tax in certain cases.
It depends on why you are asking for the redemption or termination of the contract:
The interests of a life insurance are exempt of income tax if the termination of the contract is the result of dismissal.
Dismissal is retained if you are one of the following:
- Whoever signed the contract
- Spouse or partner of Civil partnerships: titleContent of the subscriber.
Warning
The exemption does not apply in the event of a contractual breach or termination of a fixed-term contract.
The exemption shall apply if the repurchase or termination of the contract takes place before the end of the year following that in which the redundancy occurred.
Example :
You were fired on May 5, 2025.
The contract must be redeemed or terminated by December 31, 2026.
To make your tax return, you can view the following documents:
- Explanatory notes (in particular income from securities and transferable capital)
- Practical Income Tax Brochure
- Supporting documents submitted by paying institutions (IFU form).
If a pre-filled amount is inaccurate, you must correct or complete it.
Who can help me?
Find who can answer your questions in your region
For general information
Tax Information Service
By telephone:
0809 401 401
Monday to Friday from 8:30 am to 7 pm, excluding public holidays.
Free service + call price
To contact the local service managing your folder
Department in charge of taxes (treasury, tax department...)
Taxation of life insurance contracts
Online service
Simulator
Online service
FAQ
Service-Public.fr
Service-Public.fr
Service-Public.fr
Service-Public.fr
Service-Public.fr
Service-Public.fr
Service-Public.fr
Service-Public.fr
Ministry of Finance
Ministry of Finance
Ministry of Finance
General Directorate of Public Finance
Ministry of Finance