The PUMa tax (Universal Health Coverage), officially known as the Subsidiary Health Contribution (CSM), is a contribution intended to fund health insurance for people residing in France who have high investment income but little or no earned income.
Here’s how to calculate the amount you’ll owe for the year 2026 (based on your 2025 income).
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Speak with our team1. Are you liable? (The 2 thresholds)
You only pay this tax if you meet both of the following conditions:
- Low earned income: Your professional income (salaries, business income) is less than €9,612 (i.e., 20% of the PASS*).
- High investment income: Your investment income (rental income, dividends, capital gains) exceeds €24,030 (i.e., 50% of the PASS).
The couple’s exemption: If you are married or in a civil partnership and your spouse earns more than €9,612 per year, you are exempt from this tax, regardless of your own income level.
2. The calculation formula
If you are liable, the amount is calculated using a formula that includes an allowance and a reduction coefficient if you work part-time.
$$ \text{Tax} = 6.5\% \times (A - 24,030) \times \left(1 - \frac{R}{9,612}\right) $$- A: Your investment income (capped at €384,480).
- R: Your earned income (salaries, etc.).
- €24,030: The flat-rate deduction (50% of the PASS).
3. Concrete examples (2026 data)
| Situation | Investment Income (A) | Earned Income (R) | Estimated Tax |
|---|---|---|---|
| Pure annuitant | €60,000 | €0 | €2,338 |
| Small salary + Dividends | €60,000 | €4,806 (mid-threshold) | €1,169 |
| Standard employee | €100,000 | €20,000 | €0 (Exempt) |
4. What you need to know for the assessment
- Income taken into account: Rent (unfurnished or non-commercial furnished), dividends, investment interest (excluding tax-exempt Type A savings accounts), and capital gains on securities/real estate.
- Maximum cap: The tax cannot exceed approximately €23,429 per year (the calculation stops if your capital income exceeds eight times the Social Security ceiling).
- Timeline: URSSAF automatically calculates this tax based on your tax returns. You receive the payment notice in November of each year for the previous year’s income.
How to avoid or reduce it?
The most common strategy for business owners (particularly SASU companies) is to pay themselves a gross annual salary of at least €9,612. This instantly eliminates the PUMa tax, which is often much more cost-effective than paying the tax on large dividends.
*PASS 2026 estimated at €48,060.
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