News about Tax vehicle registration
French motorists may soon face higher costs. On Tuesday, December 2, senators approved two amendments raising the national ceiling of the regional tax applied to vehicle registration certificates (the “carte grise”). The maximum rate would increase from €60 to €70, as part of the 2026 budget discussions. This change could translate into additional expenses for drivers. Here is what you need to know.
The Senate Votes to Increase the Tax Ceiling
During the review of the 2026 Finance Bill, senators voted to increase the national ceiling that regions may apply to the vehicle registration tax, commonly known as the cheval fiscal rate. Although each regional council sets its own tariff, the raised ceiling allows them to increase the cost by up to an additional €10.
Several regions — including Normandy, Grand Est, Provence-Alpes-Côte d’Azur, and Brittany — already apply the current maximum rate of €60. In 2023, this tax generated around €2 billion for regional governments, representing approximately 7% to 8% of their total resources, according to the association Régions de France as reported by Le Figaro. According to Senator Stéphane Sautarel (LR), who proposed one of the adopted amendments, this tax “constitutes an important source of funding for public services.”
Why Raise the Ceiling?
The main goal is to provide additional revenue to regional authorities. The amendments note that regions have made a “historic effort” to expand their investment spending. At the same time, their inflation-adjusted revenues have decreased by 1.2%, forcing many of them to take on more debt in order to finance major investments requested by the State, including economic recovery plans and measures to support the ecological transition.
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Additional Costs for Motorists
This measure is far from welcome for many residents. David Amiel, Minister for Public Service and State Reform, expressed his opposition to the increase. He reminded senators that this tax applies to families needing a larger vehicle and to workers who must purchase a new car for professional reasons. He described the proposed change as “a new tax on middle-class French families, regardless of income.”
The raised ceiling would directly increase the cost of obtaining a vehicle registration certificate in regions that decide to adopt the new maximum rate. Under Article L 421-42 of the Code of Taxes on Goods and Services, the regional tax is calculated by multiplying the regional tariff by the vehicle’s fiscal horsepower.
Example:
If your car has 5 fiscal horsepower, and your region already charges the current ceiling of €60, raising it to €70 would generate a €50 increase (5 HP × €10 extra).
Keep in mind that the regional tax is only one component of the total cost of the vehicle registration certificate, as explained on the official Service-Public website.
How ESCEC International Can Help You
Tax changes in France can be complex — especially when they affect vehicle costs, business expenses, or personal budgeting. ESCEC International, a professional accounting and tax advisory firm, can help you:
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Understand how regional tax changes impact your personal or business finances
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Optimize your tax strategy and ensure compliance
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Anticipate future financial obligations linked to mobility or business operations in France
Whether you are an individual or a business owner, ESCEC International provides expert guidance to help you navigate the French tax landscape with clarity and confidence.
