France plans 1.8% Livret A rate and likely 2% income‑tax bracket rise in 2027

The French government is expected to raise the Livret A interest rate to 1.8% on 1 August 2026, up from 1.5%. The change follows the official formula that averages the six‑month €STR and inflation (2.4% in May 2026) and reflects a mechanical correction rather than an improvement in purchasing power. About 58 million account holders will see an annual gain of roughly €69 per full‑rate account, while net real returns remain negative.

Separately, INSEE projects inflation at around 2% for 2026, a figure that traditionally guides the automatic revaluation of the income‑tax brackets each year. If the government follows the long‑standing practice, the 2027 tax schedule could see a roughly 2% upward adjustment of the brackets, affecting all taxpayers. The 2027 budget is slated for presentation in late September, and the potential new rates have been outlined based on the inflation assumption.