France has a high tax burden primarily to finance its extensive and comprehensive social welfare system and world-class public infrastructure.
This is why France continues to be among the OECD countries whose tax rate is the highest. Taxes account for 46,1% of GDP against 34% on average in OECD countries. The overall rate of social security and tax on the average wage in 2022 was 82% of gross salary, compared with 77% of the total average tax wedge.
The country that has the highest taxes is the Ivory Coast (60%), according to statistics platform Data Panda's 2025 survey. Other countries with high taxes are Finland (56%), Japan (55%), Austria (55%), Denmark (55%), Sweden (52%), Aruba (52%), Belgium (50%), Israel (50%), and Slovenia (50%).
Answer: To meet its regular expenses, such as the cost of maintaining an army, the court, running government offices or universities, the state was forced to increase taxes.
The hidden tax loopholes for foreign entrepreneurs in France
Tax Evasion Rates by Country 2025
Typically, a good salary for a comfortable life in France is around €3,200 per month for a single person or €5,600 per month for a family of three. However, due to the higher cost of living in Paris, you'll need approximately €3,400 per month to maintain a comfortable lifestyle in the capital.
When the UK left the EU on 1 January 2021, France imposed a higher rate of 17.2% on British citizens owning French second homes. This significantly increased the tax burden for Brits and encouraged many to sell their properties.
A summary of the cost of living in France per month
Generally the cost of living in France is cheaper than in the UK, by around 1.4% without rent and 10% with rent. However, there are some areas where France is more expensive than the UK, and there are interesting differences in tax laws too.
The French economy is one of the world's largest and is a mixture of private enterprise and government involvement. Tourism is a major contributor to the economy – France generally tops lists of most visited countries. Other major economic sectors include industry, agriculture, energy and defense.
Australia's 2022 tax-to-GDP ratio ranked it 29th¹ out of 38 OECD countries in terms of the tax- to-GDP ratio compared with the 2023 figures. In 2022 Australia had a tax-to-GDP ratio of 29.4%, compared with the OECD average of 33.9% in 2023 and 34.0% in 2022.
In India, the 42% income tax rate applies to high-income earners and top corporate taxpayers who fall under the highest tax bracket after adding surcharge and cess.
The UK one-earner married couple with two children pays 70% more income tax than the French family, more than twice as much as the US family, and 15 times as much as the German family. By contrast, the UK income tax burden on a single person without children is 14% less than the OECD average at the OECD average wage.
With the 2024 edition of the Tax Competitiveness Index published, Estonia is marking an extraordinary achievement—the country has been at the top of the index for 11 years straight, beating other contenders in the OECD with the simplicity and business-friendliness of its tax system.
The average cost of living in France is 38% less expensive than in the USA. One person can live in France for $1,542 a month, while it's $2,498 a month to live in the United States. A family spends, on average, $3,796 on living expenses a month to live in France, but in the US, it's $5,861 a month.
The "5 to 7 rule" in France, or le cinq à sept, traditionally refers to a secret, after-work rendezvous (5 PM to 7 PM) with a lover for an illicit sexual encounter before returning home to family, but it's also used more broadly for discreet romantic meetings or even just a casual happy hour, though its meaning varies by region, with Québec using it more for social gatherings than affairs.
To live comfortably in France, you'll likely need at least €1,800 – €2,000 per month to live in Paris and around €1,400 – €1,700 in other metropolitan cities.
Where the UK ranks in the 31 richest countries list
One of the most important reasons French houses appear cheap is the dramatic difference in property values between regions. In France, housing prices are highly localised, what you pay in Paris or Lyon is often several times higher than in rural departments such as Creuse or Nièvre.
Although foreign buyers have no restrictions on buying a property in France, if you are not an EU citizen, then you will have to apply for a visa/residency if you intend to stay in your property for more than 90 days.
They do and France actually receives a much larger number of asylum claims than Britain – around 167,000 in 2023, compared to 67,000 in the UK. Those who arrive in France often choose to remain there and a relatively small proportion of the asylum seekers intend on moving on to the UK.
Earning €100,000 per year places you firmly within the top 1% of earners in France. In fact, the number of rich people earning this amount is part of an exclusive group of around 630,000 people. The top 0.1% of the population earns even more, with a monthly standard of living exceeding €17,500.
Definitely, the cost of living in Paris, France is much lower than in the USA. In Paris, 1,000 euros will cover your cost of living in Paris for a month if you're not a luxury lifestyle person. But that budget is almost impossible to live in a major American city for a month.
A good salary in Germany depends on your field, experience, and lifestyle aspirations. Generally, a salary between €64,000 and €70,000 gross annually is considered very good.