Germany vs France Household Taxation 2025: Splitting vs Quotient Familial

Germany vs France Household Taxation 2025

Choosing between Germany and France for family relocation requires understanding how each country calculates household taxes. Germany’s splitting system and France’s quotient familial can produce markedly different net outcomes.

Germany: Income Splitting

Married couples combine income, halve it, and apply tax rates to the averaged amount—beneficial when one spouse earns significantly more. Child benefits (Kindergeld) supplement household income, and deductions for childcare and commuting reduce taxable income.

France: Quotient Familial

Taxable income division depends on the number of family parts (spouses, children). The system favours larger families and dual earners with moderate salaries. Additional credits (childcare, schooling, energy) further reduce tax.

Comparison Example

A family with €90,000 (70/20 split) pays roughly €14,800 tax in Germany versus €13,600 in France after typical deductions. However, social charges, childcare costs, and employer benefits can tilt the decision.

Advice: Run simulations using accurate salary, benefit, and housing data to decide on relocation or remote work base.