Monaco Tax 2026: No Income Tax, but What Employees Really Pay

The key figures

Monaco has no personal income tax for its residents. The Monaco government traces it to an ordinance issued by Prince Charles III in 1869, and there is no wealth tax, property tax or council tax either (Gouvernement Princier). But “no income tax” doesn’t mean “no deductions”: every employee pays social contributions of about 13% of gross pay, French nationals pay French income tax even if they live in Monaco, and the nine in ten employees who live in France or Italy are taxed where they live.

Who pays income tax on a Monaco salary

The rule for French nationals comes from article 7(1) of the Franco-Monegasque tax convention of 18 May 1963: French nationals who move to Monaco, or who can’t prove five years of habitual residence there at 13 October 1962, are taxed in France “in the same conditions as if they had their home or residence in France”. French tax guidance reads that as covering anyone who can’t show they lived in Monaco before 13 October 1957, and, following a 2014 Conseil d’État ruling, leaves out French nationals born in Monaco who have lived there ever since (BOFiP). They file with the tax office in Menton.

For the far bigger group, people who live in France and work in Monaco, the logic is simpler. France taxes its residents on their income from anywhere (CGI art. 4 A, BOFiP), and nothing in the convention gives Monaco a tax on salaries; article 12 of the convention deals with “salaried workers … of Monaco living in France” and their French income tax. In 2025, 81.5% of private-sector employees in Monaco, about 48,000 people, lived in France, and 8.3% in Italy (IMSEE, Observatoire de l’Emploi 2025).

The Monaco government also stresses that the absence of income tax only covers activities and people “effectively and really established” in Monaco, and doesn’t override other countries’ rules.

What every employee pays: social contributions

Monaco has its own social security funds, run by the Caisses Sociales de Monaco. The rates from 1 October 2026 (unemployment from 1 January 2026), as a share of gross monthly pay:

The employer’s 13.45% for health includes 0.25% for occupational health and 0.05% for the wage guarantee fund. Since 1 January 2024 the top-up pension has been Monaco’s own CMRC rather than the French AGIRC-ARRCO. Employers also insure against work accidents privately, at about 3% in 2026 according to CLEISS. Sources: Caisses Sociales de Monaco, employers’ letter, October 2026, CLEISS.

A worked example: the median salary

Half of Monaco’s private-sector employees earned more than €3,475 a month gross in 2025 (IMSEE). On that salary:

Our calculation from the official rates. For a resident who isn’t French, €3,014.28 is take-home pay. Someone living in France then owes French income tax on it, worked out on their household’s French tax return.

VAT and other taxes

VAT in Monaco is charged “on the same bases and at the same rates as in France”: 20% standard, 10% reduced and 5.5% on essentials (Gouvernement Princier; convention art. 15). The only direct tax is a tax on business profits, paid by companies that make more than 25% of their turnover outside Monaco.

Limits

This is general information, not tax advice. Your own position depends on your nationality, where you live, your household and any other income; a tax adviser or the French tax office in Menton can confirm it. The worked example is ours, for a full-time private-sector employee. For what jobs in Monaco pay, see average salary in Monaco; for the rules on living there, see Monaco residency.

Questions

Does Monaco have income tax?

Not for its residents. The absence of income tax goes back to an ordinance issued by Prince Charles III in 1869, and Monegasques and residents are not subject to income tax, with one exception: French nationals, who under the 1963 Franco-Monegasque convention are taxed in France as if they lived there (Gouvernement Princier).

Is Monaco a tax haven?

It is often called one because residents pay no income tax, wealth tax, property tax or council tax. But that only covers people and businesses really established in Monaco, and it doesn't change other countries' rules: French nationals and anyone living in France pay French income tax, US citizens must still file US returns, and every employee pays social contributions of about 13% of gross pay. VAT is 20%, as in France.

Do you pay tax if you work in Monaco but live in France?

Yes, in France. France taxes its residents on their worldwide income, and the 1963 convention gives Monaco no tax on salaries, so a Monaco salary is declared and taxed in France like any other. Article 12 of the convention deals with exactly this case: salaried workers of Monaco living in France.

Do French people living in Monaco pay tax?

Yes. Under article 7 of the 1963 convention, French nationals who moved to Monaco, or who can't prove five years of habitual residence there at 13 October 1962, pay French income tax as if they lived in France. French tax guidance applies it to anyone who can't show they lived in Monaco before 13 October 1957, and since a 2014 Conseil d'État ruling it excludes French nationals born in Monaco who have always lived there. They file with the tax office in Menton.

What do employees pay out of their salary in Monaco?

Contributions to the state pension (CAR, 6.85% up to €6,276 a month), the top-up pension (CMRC, 4.008% up to €4,067 a month and 9.716% above) and unemployment insurance (2.40% up to €16,020 a month). Health insurance (CCSS) is paid by the employer only. On the median salary of €3,475 a month that is €460.72, or 13.26%.

More on working in Monaco

• Working in Monaco: the overview, with pay, tax and the rules in one place
• Jobs in Monaco: Live listings, who employs the most people, pay by sector, and the priority hiring and work permit rules
• Average salary in Monaco: Official private-sector pay from IMSEE: the median, the average, pay by sector and take-home pay
• Monaco residency: Who needs a residence card, the four card types, what you must prove and where to apply
• Living in Monaco: Property prices by district, how renting works, where Monaco's workers live and what moving involves
• Minimum wage in Monaco: €12.31 an hour from 1 June 2026, plus Monaco's 5% allowance, with rates by age and overtime
• Public holidays in Monaco: All 12 public holidays in 2026, what happens when one falls on a Sunday, and pay for working them

Sources

• Gouvernement Princier (MonServicePublic), La fiscalité monégasque (updated 27 August 2026)
• Gouvernement Princier (MonEntreprise), TVA (updated 27 August 2026)
• Franco-Monegasque tax convention of 18 May 1963, arts. 7, 12 and 15 (impots.gouv.fr) (in force 1 September 1963)
• BOFiP-Impôts, BOI-INT-CVB-MCO-10 (French tax guidance on the Monaco convention) (2 June 2021)
• BOFiP-Impôts, BOI-IR-CHAMP-10 (French residents taxed on worldwide income, CGI art. 4 A) (28 July 2016)
• Caisses Sociales de Monaco, contribution rates for employers (rates from 1 October 2026)
• Caisses Sociales de Monaco, Lettre d'information aux employeurs (October 2026) (October 2026)
• CLEISS, Les cotisations à Monaco (October 2026)
• IRS, U.S. citizens and residents abroad: filing requirements (reviewed 28 September 2026)