Heritage: five figures that show its weight in French inequalities

This Tuesday, May 13, Emmanuel Macron will be the guest of an interview broadcast on TF1, during which he will be questioned, among others, by Cécile Duflot, Executive Director of Oxfam France. The former Green minister intends to confront the head of state on the sensitive issue of inheritance tax. The NGO, which campaigns for a more equitable redistribution of wealth, has been advocating for several years for a reform of inheritance tax, considered an essential lever in the fight against inequality.

As inheritance plays an increasingly important role in household wealth, the issue is sparking a lively debate between social justice and commitment to family inheritance . Here are five key figures to help you understand the economic, social, and fiscal implications of inheritance in France.

In 2023, inheritance tax generated €16.6 billion for the French state, more than double the amount collected in 2011 (€7 billion), according to a report by the Court of Auditors . This increase is due to legislative changes, the increase in the number of deaths, and the rise in the value of assets, particularly real estate.

This increase of more than 137% in twelve years is explained in particular by the increase in the number of deaths, linked to the aging of the population, as well as by the continued rise in real estate and asset values. France is among the OECD countries where revenue from inheritance tax is the highest as a proportion of GDP (0.74%).

Around 40% of French households report having already received an inheritance during their lifetime, according to an INSEE study published in 2024.

Households that received an inheritance have an average gross wealth of €439,700, compared to €317,100 for all households. The gap is also marked in terms of median wealth, an indicator less sensitive to the very wealthy: it reaches €269,300 for households that inherited, compared to €177,200 for all households. An heir has approximately €90,000 more than the national median.

The share of wealth derived from inheritance has increased from 35% in the 1970s to nearly 60% today, according to a 2022 report from the Economic Analysis Council. In other words, the majority of wealth held by individuals no longer results from their work or personal savings, but from intergenerational transmission.

This phenomenon contributes to "freezing social positions," the same note details. Individuals from modest backgrounds begin their adult lives with little or no assets, which hinders their access to property ownership, entrepreneurship or productive investments.

Contrary to popular belief, nearly 85% of inheritances in France are not subject to inheritance tax , reports the Ministry of the Economy, thanks to allowances and exemptions.

In the direct line—between parents and children—each heir can receive up to €100,000 from each parent without being taxed. This threshold is renewable every fifteen years. Beyond this allowance, inheritance tax applies according to a progressive scale ranging from 5 to 45%. The maximum rate only applies to the portion of the inheritance exceeding €1.8 million per child.

This tax is also largely mitigated by a series of tax measures such as the Dutreil Pact – which facilitates the transfer of businesses – or donations through dismemberment of ownership. For example, in the context of a business transfer valued at €100 million to two children, the application of the Dutreil Pact can reduce the effective tax rate to 10.7%, compared to 44.4% without this measure, explains the Court of Auditors.

Inheritance tax is probably the least popular tax among the French, according to a survey by Odoxa for Challenges published in 2024 (1). While some taxes are perceived as legitimate – those on corporations (81%), real estate wealth (79%) or even income (73%) – inheritance tax is perceived as illegitimate by 77% of French people.

It is such an unpopular tax that the French unanimously demand that it be reduced rather than increased: 84% think that inheritance tax should be reduced, compared to only 13% who think that it should be increased.