2026 tax freeze an exception

In 2026, 79% of French municipalities kept their property tax rates unchanged, offering a rare reprieve for homeowners. This was a notable deviation from recent years, as local governments had been raising taxes to cope with rising costs and debt.

2027 tax increases likely

For 2027, many municipalities are expected to raise property taxes to address incompressible costs like energy, salaries, and infrastructure. With budgetary pressures mounting, local authorities are turning to tax increases to avoid growing deficits.

La Montagne sets example with 4-point increase

In La Montagne, Loire-Atlantique, a 4-point tax increase is under consideration, adding about 100 euros annually to each household’s bill. This move reflects the broader trend of rising local taxes across France.

Occitanie faces high tax pressure

In Occitanie, the average property tax rate is 46.47%, significantly higher than the national average of 40.57%. Some departments in the region have seen substantial tax increases over two decades, straining household budgets.

Four departments exceed 50% tax rate

Four departments in Occitanie—Aude, Gers, Tarn-et-Garonne, and Tarn—have property tax rates above 50%. These high rates place a heavy financial burden on families and may reduce the appeal of real estate in these areas.

Property tax surged 93.4% since 2005

From 2005 to 2025, France’s property tax increased by 93.4%, far outpacing cumulative inflation of 37.4%. This growth has disproportionately affected retirees and others with fixed incomes, who now pay significantly more in taxes than they did two decades ago.

UNPI calls for tax reform

The National Union of Property Owners (UNPI) is urging a shift from property tax to a local user contribution, which would spread the cost of public services more evenly among all residents, including renters.

Tax changes may impact rental markets

The upcoming tax increases could affect real estate investors, especially as the government plans to limit depreciation for furnished rentals. Landlords may face challenges in maintaining profitability while meeting higher tax obligations.