Last Updated: April 2026
France's auto-entrepreneur (officially micro-entrepreneur) regime is designed for simplicity: you pay a flat percentage of your gross revenue as social charges, and optionally a small additional percentage as income tax. No accounts, no expense tracking, no VAT. The simplicity comes at a cost — you cannot deduct actual expenses, which means high-expense activities can end up paying more tax than under the standard regime.
This guide explains how the auto-entrepreneur tax calculation works for 2026, compares the regime to the standard declaration contrôlée system, shows take-home pay at various revenue levels, and explains when to consider switching out of the micro regime.
According to the Direction Générale des Finances Publiques (DGFiP), auto-entrepreneur social charges (cotisations sociales) are applied to gross revenue at fixed rates that vary by activity type:
| Activity Type | Social Charge Rate | Examples |
|---|---|---|
| Commercial sales (BIC vente) | 12.3% | Retail, e-commerce, wholesale, artisanal food production |
| Accommodation / hospitality (BIC) | 6.0% | Gîte, furnished rental, Airbnb hosts |
| Services (BIC prestation) | 21.2% | IT, consulting, marketing, transport, cleaning |
| Professions libérales (BNC) | 21.1% | Freelance writers, designers, coaches, trainers, health professionals not affiliated to CIPAV |
| Professions libérales (CIPAV) | 21.2% | Architects, engineers, psychologists, physiotherapists, other CIPAV-affiliated professions |
These rates cover all social contributions: health insurance, maternity, pension, invalidity, and family allowances. There are no separate calculations — one flat rate covers everything.
The critical feature of the micro regime is that no actual expense deductions are permitted. The flat rate applies to total gross revenue regardless of what you spend to generate that revenue. The URSSAF considers the revenue × rate to be the correct social charge for the micro regime — if your actual expense ratio is higher than the built-in abattement (which is implicitly 29% for services, 50% for sales), the standard regime may be more efficient.
Auto-entrepreneurs can opt for the versement libératoire de l'impôt sur le revenu — a flat-rate income tax payment alongside social charges, replacing standard progressive IRPF. The rates are:
| Activity Type | Income Tax Rate |
|---|---|
| Commercial sales (BIC vente) | 1.0% |
| Services (BIC prestation) | 1.7% |
| Professions libérales (BNC) | 2.2% |
The versement libératoire is only available if your household income in year N-2 (two years before the current year) did not exceed the income ceiling for the second tax bracket. For 2026, the household reference income for 2024 must not exceed approximately €27,478 per 'part' of the household quotient. This makes it primarily beneficial for lower-income households or single individuals at mid-income levels.
For a single auto-entrepreneur earning €40,000 revenue in services, standard IRPF at 30% marginal rate on the imputed profit would be significantly more than 1.7% of revenue. But if the household total income is above the eligibility threshold, the option is unavailable. And for taxpayers with large other deductions (mortgage interest, family credits), standard IRPF may produce a lower bill than the flat rate — always compare both scenarios.
The table below shows approximate take-home revenue for auto-entrepreneurs in the services BIC category (21.2% social charges + 1.7% versement libératoire where applicable) at various annual revenue levels. These figures assume the versement libératoire is elected and the eligibility criteria are met:
| Annual Revenue | Social Charges (21.2%) | Income Tax (1.7%) | CFE (est.) | Net Take-Home | Effective Rate |
|---|---|---|---|---|---|
| €20,000 | €4,240 | €340 | ~€200 | ~€15,220 | ~23.9% |
| €35,000 | €7,420 | €595 | ~€250 | ~€26,735 | ~23.6% |
| €50,000 | €10,600 | €850 | ~€300 | ~€38,250 | ~23.5% |
| €65,000 | €13,780 | €1,105 | ~€350 | ~€49,765 | ~23.4% |
| €77,700 (ceiling) | €16,472 | €1,321 | ~€400 | ~€59,507 | ~23.4% |
The flat-rate structure means the effective rate is remarkably stable across income levels — one of the regime's advantages. The main cost driver is the 21.2% social charge rate itself, which is substantially higher than the commercial sales rate (12.3%).
The Cotisation Foncière des Entreprises (CFE) is a local business tax levied on all auto-entrepreneurs, often overlooked by new registrants. It is assessed by your commune (municipality) based on the rental value of the premises used for the business (or a minimum flat amount if you work from home).
Many auto-entrepreneurs are surprised by a first CFE bill in their second year of operation — budget for it from registration onwards.
The auto-entrepreneur regime is not always the most tax-efficient option. Consider switching to the régime réel (declaration contrôlée) when:
If your actual expenses exceed the regime's implicit abattement (29% for services, 50% for sales), the réel regime lets you deduct actual costs. Example: a services auto-entrepreneur with €50,000 revenue and €25,000 expenses pays social charges on €50,000 under micro regime. Under réel, social charges and income tax would be based on €25,000 profit — potentially saving thousands per year.
Services threshold: €77,700/year. Commercial sales: €188,700/year. Exceeding these thresholds in two consecutive years forces a switch to the réel regime automatically. Plan the transition in advance — late switches cause cash flow disruption.
Auto-entrepreneurs are exempt from VAT below the micro-regime thresholds. If you have significant VAT-bearing input costs (equipment, professional services), the réel regime with VAT registration allows you to reclaim that input VAT — often outweighing the additional accounting complexity.
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Set Up Compliant French Freelance Contracts →The rate depends on activity type: commercial sales pay 12.3% of gross revenue; services (BIC) pay 21.2%; professions libérales pay 21.1% (or 21.2% for CIPAV-affiliated professions). Accommodation/Airbnb hosts pay 6%. These flat rates cover all social contributions — health, pension, maternity, family — with no separate calculations required. No expense deductions are permitted against these rates.
The micro-entrepreneur regime thresholds in 2026 are: €77,700 for services (BIC and BNC), and €188,700 for commercial sales and accommodation. Exceeding these thresholds in two consecutive years forces a switch to the standard régime réel. Revenue is measured annually and includes all invoiced amounts (not net of expenses, since no expense deduction is available under the micro regime).
The versement libératoire is an optional income tax payment at flat rates (1% for sales, 1.7% for services, 2.2% for liberal professions) instead of standard progressive IRPF. It is beneficial for lower-to-middle income households where the flat rate produces less tax than the progressive bands. Eligibility requires your N-2 household income per part to be below approximately €27,478. High earners or those with significant deductions may do better under standard IRPF — calculate both scenarios.
Auto-entrepreneurs under the micro-regime thresholds are exempt from VAT — they neither charge VAT to clients nor reclaim VAT on purchases. Their invoices must state 'TVA non applicable — Article 293 B du CGI'. If annual revenue exceeds the VAT micro-threshold (€36,800 for services, €91,900 for sales in 2026), VAT registration becomes mandatory mid-year.
CFE (Cotisation Foncière des Entreprises) is a local business tax payable from the second year of registration. It's typically €200–€2,000/year for home-based businesses depending on municipality. Auto-entrepreneurs with annual revenue under €5,000 are exempt entirely. There is no CFE in the first year of registration. CFE is due in December and cannot be deducted as a business expense under the micro regime.
Switch to réel if: (1) your actual expenses exceed 29% of revenue (services) or 50% (sales), making real deductions more valuable than the flat rates; (2) your revenue approaches the micro-regime ceiling; or (3) you have significant input VAT to reclaim. The réel regime requires proper bookkeeping and a comptable (accountant) but can significantly reduce tax liability for high-expense activities. Professional advice before switching is strongly recommended.
Yes — auto-entrepreneurs can invoice foreign clients freely. EU B2B services use the reverse charge mechanism (no French VAT charged; the client self-accounts in their country). Non-EU B2B services are generally outside the scope of French VAT. Revenue from foreign clients counts toward the micro-regime threshold in the same way as domestic revenue. Currency conversion for Modelo threshold calculations uses the EUR equivalent at the invoice date.