Property tax reform proposed for 2028

Starting in 2028, the property tax in France may be recalculated based on the actual sale price of real estate, rather than outdated evaluations from the 1970s. This change is part of an amendment proposed by Philippe Juvin, general rapporteur of Les Républicains, which aims to modernize the tax system and address growing disparities in how property taxes are assessed.

New system based on real estate transactions

The proposed system would automatically adjust the cadastral rental value of a property at the time of a sale or transfer, using the actual price paid. This value would then determine the property tax, replacing the old, static assessments. The process would be automatic, triggered by the registration of a notarized deed, without requiring taxpayer action.

Regional impact varies

The reform would affect different regions in distinct ways. In metropolitan areas where property prices have risen sharply since the 1970s, property taxes could increase significantly. In contrast, rural areas or regions with declining populations might see a decrease in tax liability as the new system aligns with current market values.

Outdated cadastral values and rising tax costs

Current cadastral rental values, used as the basis for property tax, largely date back to 1970. Despite major changes in urban development, housing prices, and property ownership, no comprehensive revision has been made. This has led to significant disparities between assessed values and actual market prices, contributing to rising tax burdens.

Rapid increase in property tax costs

Between 2005 and 2025, the average property tax in France increased by 93.4%, far outpacing inflation, which rose by only 37% during the same period. In 2026, the average national property tax was 635 euros, with higher rates in regions like Occitanie and cities such as Montpellier.

Impact on different property owners

First-time buyers and those purchasing in high-demand areas will face the most immediate effects. For instance, buying a home in Toulouse or Nîmes in 2029 will result in property taxes based on the actual, higher sale price. Long-term owners who have not sold or transferred their property will continue to pay taxes based on the old cadastral values until their next transaction.

Potential behavioral effects on the market

The reform could influence real estate purchasing behavior. Some households might try to buy property before 2028 to avoid higher taxes, creating temporary market pressure. Inherited properties in high-value areas could lead to increased tax burdens for heirs, possibly encouraging sales after inheritance.

Next steps for the reform

The Juvin amendment, approved by the finance committee, now requires approval by the National Assembly in plenary session and later by the Senate. The government has not yet officially endorsed the change. If passed, the reform would take effect on January 1, 2028, creating a two-speed tax system where property owners who do not sell or transfer will continue to pay based on older values.