Tax increaseIn effectSocial security and healthcareNational

25% CSG on income from illegal activities taxed by the tax authorities

Article 65 of Act No. 2026-534 of 25 June 2026 on combating social security and tax fraud subjects sums taxed under Article 1649 quater-0 B bis of the General Tax Code (income presumed to come from illegal activities) to the general social contribution (CSG) at a rate of 25%. This CSG is not deductible from taxable income. These sums are counted as resources for means-tested benefits, and unemployment benefits cannot be combined with them for the same period. The higher rate applies to income taxable for 2026 and subsequent years.

Measure originators

InitiatorGVT

Amélie de Montchalin

Gouvernement

InitiatorGVT

Jean-Pierre Farandou

Gouvernement

InitiatorEPR

Stéphanie Rist

Ensemble pour la République

Impact on public finances

Brings in €13.7m/yr2026 estimate · Social security

Source of the estimate: Étude d'impact du projet de loi relatif à la lutte contre les fraudes sociales et fiscales (article 14, impacts budgétaires) (Indirect official figure)

A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.

Effective date

1 January 2026

Measure impact

People taxed on income from illegal activities pay CSG at 25% on those sums from 2026 income, with no deduction from taxable income; their unemployment benefits may be reduced by the amount of that income. The bill's impact assessment estimates the additional yield at €13.7 million.