Increase in French Property Tax in 2026: What You Should Know

Are you wondering if your local property tax will rise in 2026 and why? Whether you are a homeowner, future buyer, or rental investor, it’s important to understand the upcoming property tax reform, the expected increase, and how the calculation is determined.

The 2026 property tax adjustment stems from an update of cadastral bases. This reform aims to make the taxable property base more accurate. Below, we explain the government decisions, the revised calculation method, projected amounts, and the timeline.

You will also find practical guidance on how this increase may affect your real estate plans. For personalized advice, consult your local Capifrance advisor.

Understanding the 2026 French Property Tax Reform

In 2026, the French Government and the Tax Administration (DGFiP) will carry out an operation to verify and update property tax bases. According to Bercy, the main objective is to improve tax fairness by aligning taxable values with the current characteristics of dwellings. This reform also aims to enhance the financial stability of local revenues.

Some property files used to calculate taxes date back to the 1970s and may not reflect modern amenities such as running water, electricity, plumbing, or heating. The 2026 reform will re-evaluate the cadastral rental value for properties that were previously underestimated.

The Government presents this measure as part of the 2026 budget, aiming to generate additional revenue for municipalities, intercommunalities, and departments, to fund public services and local investments.

The reform has sparked debate. Political parties and associations have criticized it as “cosmetic” or a way to “fill local coffers,” while others caution about its impact on homeowners’ purchasing power.

The DGFiP plans a communication and correction process, sending letters or emails to affected owners in early 2026, allowing them to correct information before the final re-evaluation is applied.

What the Housing Data Update Involves

Updating housing records means completing or correcting the information used to calculate the cadastral rental value. Data such as surface area, room types, and comfort features will be verified. The initial operation targets approximately 7.4 million dwellings in mainland France that are missing at least one comfort element.

Most homes now include these amenities, so the update will automatically add weighted square meters to the taxable base.

The impact differs regionally: around 25% of houses and 15% of apartments may see an increase, with variations depending on the department.

Financially, the DGFiP estimates an average increase of €63 per affected property, equivalent to about €12.50 per added square meter. Fully implemented, the reform could generate roughly €466 million in additional local revenue.

Reasons Behind the Property Tax Increase

Several motivations are cited:

Correcting outdated tax bases.
Meeting the 2026 budgetary targets.

Authorities emphasize fairness, ensuring each owner pays according to the actual features of their property. The reform harmonizes the taxable base without modifying local tax rates.

Critics argue that taxing basic amenities is paradoxical, calling it a “cosmetic” revenue measure without public consultation.

Property owners are advised to monitor DGFiP communications and understand the updated method. Mistakes can be contested if the recorded information is inaccurate.

How Property Tax Will Be Calculated in 2026

The core calculation remains: cadastral rental value × local tax rates. The change lies in how the rental value is determined. The DGFiP will add missing comfort elements, increasing the taxable base.

For each absent element deemed present, additional square meters are included, raising the taxable base and, consequently, the tax if local rates remain unchanged. The final increase depends on local tax rates.

The DGFiP has published a weighting table for these adjustments. The average increase is indicative and may differ by municipality. Owners can contest any incorrect entries. Notifications with detailed instructions will be sent in early 2026.

Comfort Elements Considered in the Calculation

The DGFiP specifies the following additions to weighted surface area:

Running water: +4 m²
Electricity: +2 m²
Bathtub: +5 m²
Shower: +4 m²
Sink: +3 m²
Toilet: +3 m²
Heating or air-conditioning: +2 m² per equipped room

Multiple elements accumulate, potentially raising the taxable base significantly. While local rates are unchanged, total tax may increase substantially in municipalities with high rates.

Contesting an Increase

The DGFiP will contact potentially affected owners with a letter or email explaining recorded comfort elements and the contesting procedure.

Deadline to respond: April 2026
Documentation window: Until June 2026 (photos, invoices, diagnostics)
Possible home inspections may be requested.

Administrative and legal appeals remain possible if disagreements persist. Owners should retain all documents related to their property’s condition and equipment.

Who Will Be Affected

The reform potentially impacts all property owners, with effects varying by property type, occupancy, and location:

Owner-occupiers: Most affected, especially in older homes with outdated data.
Landlords/rental investors: Net rental returns decrease, as the increase cannot be passed to tenants.
Future buyers: Must account for higher taxes in financing plans.
Owners of secondary residences: Higher risk due to both re-evaluation and local rates.
Owners of undeveloped land: Indirectly affected if municipalities adjust buildable land rates.
Co-owners: Shared equipment (heating, elevators) may increase taxable bases.

Understanding Property Tax

Property tax is an annual local tax due on January 1st for both built and unbuilt properties. It is calculated as cadastral rental value × local rates.

It differs from the former housing tax (mostly abolished) and capital gains tax (paid upon sale).

Impact on Real Estate Plans

The increase raises annual costs for homeowners and reduces returns for investors. It must be considered in financial planning, borrowing capacity, and negotiations.

A professional advisor can simulate the impact and optimize real estate decisions.

Payment and Terms

Notices: Early September
Payment: November
Monthly payments: Possible via the taxpayer portal

Key Takeaways

2026 reform updates outdated cadastral bases
~7.4 million homes may be affected
Average increase: €63 per property
Comfort elements add weighted square meters to the taxable base
DGFiP notifications in early 2026
Impacts rental returns and buying capacity
Monthly payments help budgeting

FAQ

Will property tax disappear in 2026?
No. Property tax remains but may increase for many owners due to updated bases.

How do I set up monthly payments?
Activate monthly payment via your impots.gouv.fr account.

When will the 2026 property tax bill arrive?
Typically in early September.

Who must pay property tax?
Any owner on January 1st of the tax year.

How to contest an incorrect increase?
Follow the procedure in the DGFiP notice sent in early 2026.