Puma tax explained: who pays, exemptions, and 2025 thresholds
The mandatory social security contribution helps fund healthcare - but many are exempt
The Puma tax helps fund France’s healthcare system and is levied on those with substantial capital income
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The Puma tax (officially known as the cotisation subsidiaire maladie) is a mandatory social security contribution in France, designed to fund healthcare.
It is paid by individuals earning capital income, such as rental income, dividends, and capital gains.
The tax is calculated based on a person’s income from the previous year and is managed by Urssaf, the body responsible for collecting social security contributions.
Who is required to pay the Puma tax?
Not everyone is required to pay the Puma tax as it applies to those earning capital income over a threshold set annually by the government.
Primarily, workers with low salaried income but substantial capital income, as well as early retirees, will be liable for the tax.
Capital income includes money earned from shares and bank accounts, rents and non-professional furnished letting, stock dividends, and gains from the sale of property.
It excludes retirement pensions, declared as such in your French income tax declaration.
For 2025, the threshold for paying the Puma tax is calculated in relation to the French PASS, plafond de la sécurité sociale, of €47,100.
Many people will have nothing to pay as there is an allowance against the first €23,550 of capital income (50% of the PASS).
Residents who earned less than €9,420 from work in 2024 (20% of the PASS) but substantial capital income, may be liable to pay the Puma tax.
How is the Puma tax calculated?
The Puma tax is calculated on the capital income of the individual based on the previous year’s tax return.
For those whose capital income exceeds the €23,550 allowance, the tax rate of 6.5% applies to capital income beyond this amount.
For couples, the €23,550 allowance is applied separately to each partner’s share of the household income. If the share is unclear, it is divided equally.
The tax is capped at eight times the PASS (€376,800 for 2025) so the Puma tax will rise as a percentage up to this amount of capital income as a maximum.
In some cases, Urssaf may adjust the amount taken into account for the calculation if the household's lifestyle appears luxurious, which will affect the amount of tax due.
Exemptions to the Puma tax
Certain groups are exempt from the Puma tax, including:
People on low incomes are exempt generally in view of the high allowance that is made against income.
How to pay the Puma tax
Puma tax payments can be made online via your personal account in your space on the Urssaf website.
First-time users can create an account on the website by providing their 15-digit social security number and a temporary code from the first payment notice.
Alternatively, payments can be made by cheque or bank transfer.
On the website you can also review your Puma record regarding tax liability and contribution amounts or phone Urssaf for information on 08 06 804 267.
They will also be able to help with payment issues or if you believe you should be exempt but receive a notice to pay Puma tax.
Many people from exempt groups have mistakenly received payment notices in past years.
