US Expat Tax in France (2026)

Most US expats in France rely on the US-France treaty's Article 24 equalization (for US residents taxed by France) plus Foreign Tax Credit rather than FEIE. French tax is high enough that FTC plus CSG-credit usually eliminates US federal tax. The FEIE is rarely optimal in France. Model both, and note CSG/CRDS is creditable foreign tax under IRS guidance — include it in your Form 1116.

Yes, since 2019. The IRS reversed its long-standing position and now allows US taxpayers to claim CSG/CRDS paid on French employment income as a creditable foreign tax on Form 1116 (Notice 2019-31 / Rev. Rul. 2019-15). This typically adds 9.7% of wages to your FTC pool — a meaningful credit increase. Amend prior years back to 2009 if you paid CSG but did not credit it.

Usually no. The US-France Totalization Agreement (in force since 1988) means Sécurité Sociale coverage generally exempts you from US Social Security and Medicare on the same earnings. Request a Certificate of Coverage from CLEISS (for French coverage) or the SSA (for US coverage).

Yes. Paris appears on the IRS annual high-cost city table with one of the higher per-city limits among European capitals. Rents within Paris regularly exceed the default 14%-of-FEIE cap. Use the current year's IRS notice on Form 2555 for the specific Paris limit.

Not favorably. The PEA is not US-tax-advantaged — gains and dividends inside a PEA are US-taxable annually, and most PEA-eligible funds are PFICs (Form 8621). Assurance-vie is usually treated as a foreign grantor trust for US purposes, triggering annual reporting on Form 3520 and sometimes 3520-A. Most US expats in France avoid PEA and assurance-vie and keep investments in US brokerages.