Property tax in Paris: calculation, exemptions, and changes in 2026

If you are a property owner in Paris, you have probably felt the shock: the property tax jumped by 52% in 2023. An unprecedented increase in the capital, which transformed an often-overlooked budget line into a significant expense for many landlords.

This guide provides you with a comprehensive breakdown of the system — properties concerned, calculation method, payment schedule, available exemptions, and perspectives for 2026 and beyond.

Which properties are affected?

Property tax is a local tax owed by any property owner, whether they occupy their property, rent it out, or leave it vacant. It is calculated as of January 1st of each year — it is the situation on this date that determines the taxpayer liable for the entire year.

Property tax covers both built properties (apartments, houses, commercial premises, cellars, parking spaces) and non-built properties (gardens, yards, building land).

Key point for landlords: even when the property is rented, it is always the owner who pays the property tax — not the tenant. It cannot be passed on to the tenant under a standard residential lease. However, it is fully deductible from your property income under the actual regime (régime réel), or from your BIC under the LMNP actual regime.

How is property tax calculated in Paris?

The calculation is based on two parameters: an assessment basis set by the tax administration, and a tax rate voted by local authorities.

Property tax = Taxable base × Tax rate

The taxable base

For built properties, the taxable base is equal to 50% of the cadastral rental value of the property. This rental value is supposed to represent the theoretical annual rent that the owner would collect if they rented out their property. The 50% allowance is intended to cover management, insurance, and maintenance costs.

💡 In Paris, cadastral rental values vary by arrondissement, surface area, and property characteristics — which explains the differences in amounts observed from one property to another, even with an identical tax rate across the city.

For non-built properties, the allowance is 20% (and not 50%). In high-demand areas like Paris, the rental value of building land can be increased by up to €3/m².

Applicable rates in Paris

In Paris, five bodies benefit from the property tax and each vote their own rate: the Council of Paris, the Île-de-France region, the Île-de-France public land establishment, the Société du Grand Paris, and the Métropole du Grand Paris. The contributions are added together to form the total amount of the tax.

Concrete example — Parisian apartment, cadastral rental value €5,800:

To this are added the rates of the other bodies and the household waste collection tax (TEOM), mentioned separately on the tax notice.

Important: if you have carried out major works or modified your property during the year, the resulting increase in the cadastral rental value applies on January 1st of the following year — not immediately.

Calendar and payment terms

The tax notice is sent during the second half of the year. Deadlines vary depending on the chosen format.

The payment deadline is generally set around October 15th. In the case of monthly payments, direct debits begin in January and are spread over 10 months, with a possible adjustment from October to December.

For amounts under €300, several payment methods are available: cash, bank card, check, TIP SEPA, or direct debit. Beyond €300, only monthly payments, direct debit at maturity, and online payment are accepted.

In case of late payment: a 10% surcharge is automatically applied, to which late payment interest may be added if the payment remains deferred.

In case of an error on your notice: pay first, then file a claim (online, by mail, or at the counter of your tax office). You have until December 31st of year N to contest the tax of year N−1.

Reporting obligations

In most cases, the administration automatically calculates the property tax without any action on your part. But certain situations require an active declaration.

If your property has not undergone any modification, simply check that the cadastral information is accurate in your personal space on impots.gouv.fr ("Gérer mes biens immobiliers" section) — surface area, use, equipment.

If you have carried out major works (partial demolition, extension, elevation, change of use), you must inform the administration via the dedicated form available on impots.gouv.fr. The declaration must be made within 90 days of the completion of the works.

Available exemptions in Paris

Exemption for new construction or works

New builds, reconstructions, and building additions benefit from a total property tax exemption for 2 years from completion. This exemption is total for properties used as a residence (primary or secondary), and partial for commercial or industrial premises.

Exemption for energy efficiency improvements

For housing completed before 1989 that has undergone energy renovation works, Paris can grant a 50% to 100% exemption for 3 years, under certain conditions:

💡 For landlords concerned by the DPE (Energy Performance Certificate): this exemption is a leverage not to be neglected if you undertake works to move your property out of class F or G. It reduces your tax burden during the investment repayment period.

Exemption for involuntary rental vacancy

If your property intended for rent remains unoccupied for at least 3 months for a reason beyond your control (damage, mandatory works, unexpected departure of the tenant), you can request a partial relief by filing a claim with the administration.

Exemptions related to age and personal situation

💡 Good to know: if you no longer meet the resources conditions to benefit from an age-related exemption, it is nevertheless extended for an additional 2 years.

Cap at 50% of income

If your reference tax income is low and your home is your primary residence, you can request a cap on your property tax at 50% of your reference tax income. The portion exceeding this threshold is refunded to you.

Conditions: be the owner-occupier of your primary residence, not be subject to the IFI (wealth tax), and have an RFR below the applicable ceiling (€29,288 for one share in 2024). The form to use is the 2041-DPFT-SD.

In case of sale during the year

The rule is simple: property tax is always owed by the owner as of January 1st of the year, even if the property is sold during the year. The seller is the legal taxpayer for the entire year.

However, a pro-rata distribution between seller and buyer is common in notary practice. It must be expressly provided for in the sales agreement — the buyer is not legally bound to it in the absence of a clause.

The 2023 increase and the 2026-2028 outlook

Until 2022, Paris applied a rate of 13.5% — well below the national average of 35.6%. The situation changed abruptly.

For 2025 and 2026, as inflation has slowed down, the revaluation of rental values should be more moderate. The rate voted by the Council of Paris remains at 20.5%.

The deadline to watch is 2028: this is the theoretical effective date of the reform of cadastral rental values, whose bases date back to 1970. This reform, underway since 2017, aims to update rental values to bring them closer to the real real estate market. For Parisian owners whose cadastral values are currently undervalued compared to market prices, this review could result in another significant increase in property tax — independently of any municipal decision on rates.

Do you want to optimize the management of your property in Paris?

BAUVAUT assists Parisian owners in renting out and daily managing their properties — short term, mobility lease, Civil Code lease, or long-term rental. We guide you toward the professionals adapted to your tax situation and handle all rental procedures. Contact us for a free initial discussion.