Photo by Nataliya Vaitkevich via PexelsActual expenses let an employee replace the 10 percent flat-rate allowance with the exact amount of their professional expenses, whenever that amount exceeds the flat rate. This choice, to be made every year when filing the tax return, mainly concerns commuting costs, meals taken away from home and remote work. Understanding the calculation rules and the receipts required makes it possible to assess whether the actual expenses option is genuinely worthwhile for a given situation.
What are actual expenses and who can deduct them?
The French tax system applies, by default, a 10 percent flat-rate allowance on taxable salaries, meant to cover common professional expenses (transport, meals, documentation). This allowance is calculated and applied automatically, with no action required.
An employee who believes their real professional expenses exceed this flat rate can give it up and opt for the actual expenses deduction, meaning the deduction of the exact amount of their justified expenses. The option applies to the whole of that person’s salary income: it is not possible to combine the 10 percent allowance on part of a salary with actual expenses on the rest.
In a married or civil-partnered household, each member of the tax household individually chooses the regime that suits them best. Three conditions must be met for an expense to be deductible under actual expenses: it must directly serve the professional activity, have been paid during the tax year, and be supported by a valid receipt kept by the taxpayer.
Actual expenses or the 10 percent flat allowance: how to choose?
The choice between the two regimes mainly depends on the total amount of real professional expenses incurred over the year, compared with what the automatic allowance provides.
| Criterion | Flat-rate allowance (10%) | Actual expenses |
|---|---|---|
| Process | Automatic, no receipts needed | Opt-in, amount must be itemized |
| Amount | Capped every year (minimum and maximum revalued) | No maximum cap |
| Receipts | Not required | Mandatory, kept for 3 years |
| Benefit | Low professional expenses | High professional expenses (long commute, frequent meals) |
The 10 percent flat-rate allowance is revalued every year by the tax authorities, with a minimum and a maximum amount applicable per household member earning a salary (service-public.gouv.fr, updated April 2026). By contrast, the actual expenses deduction has no maximum cap at all: only the justified amount limits the deduction.
The tax saving generated by switching to actual expenses then depends directly on the household’s French income tax scale: the higher the marginal tax rate, the more an extra deduction reduces the tax due. A household that wants to measure this gain precisely can first check its French marginal tax rate, which determines the bracket against which every extra euro of deducted expense is applied.
How do you calculate transport and mileage costs?
Commuting costs between home and the workplace are the expense category most frequently claimed under actual expenses.
Mileage scale and commuting distance
The calculation of mileage costs relies on an official scale, published every year by decree and updated according to the vehicle’s fiscal power and the number of kilometers travelled. The simulator provided by the tax authorities gives the deductible amount directly from these two pieces of information.
The distance taken into account is in principle capped at 40 kilometers per trip, or 80 kilometers per working day. Beyond this limit, the employee must justify particular circumstances (relocation required for professional or family reasons, no closer housing available) for the additional kilometers to remain deductible. For electric vehicles, the amount obtained through the scale is increased by 20 percent.
Tolls, parking and loan interest
Beyond the mileage scale itself, several related costs tied to using the vehicle for professional trips remain deductible with receipts: toll fees, parking costs and loan interest incurred to purchase the vehicle used. These amounts are added on top of the mileage scale result, they are not already included in it.
Meal, remote work and professional equipment expenses
Several other common expense categories can be included in the actual expenses calculation, in addition to transport costs.
Meals taken away from home
An employee who cannot go home for lunch, due to distance or working hours, can deduct a flat rate of 5.45 euros per meal, from which any contribution already paid by the employer, for example through meal vouchers, must be subtracted. Meal expenses above this flat rate remain possible but must then be fully justified with detailed receipts.
Remote work expenses at home
Allowances paid by the employer to cover remote work expenses at home are exempt from tax within a limit set by the tax authorities and updated every year (2.70 euros per day, 59.40 euros per month and 626.40 euros per year under the scale published on service-public.gouv.fr). Beyond this automatic exemption, an employee working remotely can also deduct, under actual expenses, a share of electricity, heating and internet connection costs, calculated in proportion to the floor area and the time actually dedicated to the professional activity.
Computer equipment, office furniture and supplies bought for professional use are likewise deductible, in full if used exclusively for work, or on a pro-rata basis in case of mixed personal and professional use.
How do you report actual expenses on a tax return?
Switching to actual expenses involves two separate reporting obligations. The total amount of professional expenses for which the deduction is claimed must first be entered on the dedicated line of the tax return. The breakdown of that amount, item by item, must then be provided in a supporting note kept by the taxpayer.
An often overlooked point: allowances and reimbursements paid by the employer for professional expenses must be added back to taxable salary once the actual expenses option is chosen, since these amounts will then be covered by the deduction itself. Receipts (invoices, expense notes, certificates) are not attached to the tax return, but must be kept for three years and produced if requested by the tax authorities.
Special cases: relocation, dual residence and specific professions
Certain situations open up expense categories that are less well known than transport or meals. Relocation costs incurred for professional reasons, for example on a transfer or a new, distant position, are deductible with receipts.
Dual residence costs are also accepted when the professional activity requires living in a place far from where the spouse or civil partner works, provided the distance is not the result of mere personal preference. Rent, charges and meal costs linked to this second residence are then included in the calculation.
Certain professions (teachers, journalists, musicians, sales representatives, artists) also benefit from specific expense categories recognized by the tax authorities, such as setting up a home office or buying instruments and professional equipment. Interns, students and jobseekers can in turn deduct expenses linked to their situation, even without being taxed in the current year, in order to carry them forward if needed.
For households looking more broadly to reduce their tax bill beyond the choice between actual expenses and the flat allowance, other complementary options exist, detailed in our guide on how to reduce your taxes in France, including payments into a retirement savings plan or the use of certain tax relief schemes.
Frequently asked questions
Which professional expenses can be deducted under the actual expenses regime?
Commuting costs between home and the workplace, meal costs incurred away from home, remote work expenses, dual residence costs and, for certain professions, equipment or training expenses are deductible under the actual expenses regime. Each expense must relate directly to the professional activity, have been paid during the tax year, and be supported by a valid receipt.
How do you calculate the amount of your actual expenses?
The calculation adds up every justified professional expense incurred during the year: mileage costs assessed using the official scale, meal costs either at the flat rate or the real amount, remote work costs within the exemption limit, and other specific expenses. The total is then compared with the 10 percent flat-rate allowance to determine the more advantageous option.
Are actual expenses more advantageous than the 10 percent flat allowance?
Actual expenses become advantageous as soon as the total of justified professional expenses exceeds the 10 percent flat allowance automatically applied to the salary. An employee with a long commute or regular meal costs away from home often crosses this threshold, unlike an employee who lives close to their workplace.
What is the cap on the 10 percent flat-rate allowance?
The 10 percent flat-rate allowance is capped every year by the tax authorities, with a minimum and a maximum applicable to each member of the tax household earning a salary. This cap is revalued annually, so it is worth checking the amount in force on the official tax website at the time of filing.
Do you need to provide receipts for actual expenses?
Receipts are not attached to the tax return itself, but they must be kept for three years and produced to the tax authorities if requested. Claiming an expense without a supporting receipt exposes the taxpayer to a reassessment and the loss of the corresponding deduction.