IFI 2026: calculation, thresholds and tax brackets

The IFI (Impot sur la Fortune Immobiliere, or real estate wealth tax) applies to taxpayers whose net taxable real estate assets exceed 1,300,000 euros on January 1 of the tax year. The progressive tax schedule comprises six brackets, from 0% to 1.5%, with a tapering mechanism for assets close to the threshold. This guide details the technical calculation of the IFI in 2026.

Introduction

The IFI replaced the ISF (solidarity wealth tax) in 2018, refocusing wealth taxation exclusively on real estate assets. For Parisian property owners, where portfolio values quickly cross the threshold due to high prices per square metre, mastering the IFI calculation is a concrete wealth management concern. In 2026, in Paris, an apartment of 120 m² in a central arrondissement can on its own exceed the taxation threshold.

This article focuses on the calculation mechanics: brackets, thresholds, allowances, tapering and deductible debts. For a broader overview of the IFI framework and reduction strategies, see our comprehensive IFI guide.

Table of contents

• IFI tax base: which assets are taxed?
• At what level of wealth do you start paying the IFI?
• What are the IFI tax brackets in 2026?
• Which allowances and debts reduce the tax base?
• How much IFI do you pay on a typical Parisian portfolio?
• Frequently asked questions

IFI tax base: which assets are taxed?

The IFI tax base encompasses all real estate rights and assets held directly or indirectly on January 1 of the tax year. This includes built properties (primary residence, secondary residence, rental properties), land, SCI shares, SCPI and OPCI shares for their real estate fraction, and real property rights (usufruct, bare ownership under certain conditions).

Real estate assets used for the taxpayer’s professional activity are exempt, provided the activity is exercised as the main occupation. A commercial property held by a non-operating investor falls within the tax base. Forestry and rural assets benefit from partial exemptions under certain conditions.

Valuation is based on actual market value on January 1. In Paris, notarial references by arrondissement and property type form the most commonly used valuation basis. A property hunter familiar with market prices by neighbourhood can help refine this valuation, particularly for atypical properties.

At what level of wealth do you start paying the IFI?

The IFI trigger threshold is set at 1,300,000 euros in net taxable real estate assets. Below this amount, no IFI is owed. However, when the threshold is exceeded, the tax brackets apply from 800,000 euros, not from 1,300,000 euros. This distinction is fundamental and often misunderstood.

A tapering mechanism softens the threshold effect for portfolios between 1,300,000 euros and 1,400,000 euros. The taper is calculated as follows: 17,500 euros minus (1.25% x net taxable assets). For example, for a portfolio of 1,350,000 euros, the taper amounts to 17,500 euros minus (1.25% x 1,350,000 euros) = 17,500 euros minus 16,875 euros = 625 euros. This taper reduces the IFI calculated under the standard brackets.

Beyond 1,400,000 euros in assets, the tapering disappears and the tax brackets apply in full.

Net taxable assets	IFI before taper	Taper	IFI due
€1,300,000	€2,500	€1,250	€1,250
€1,325,000	€2,675	€938	€1,738
€1,350,000	€2,850	€625	€2,225
€1,375,000	€3,025	€313	€2,713
€1,400,000	€3,200	€0	€3,200

The table shows why the taper exists: without it, crossing the €1,300,000 threshold by a single euro would trigger €2,500 of tax outright. With it, entry into the IFI starts at €1,250 and the step is smoothed across €100,000 of assets. Across that band, each additional €25,000 of assets costs roughly €490 of IFI, an effective marginal rate close to 2%, well above the 0.70% shown in the brackets.

What are the IFI tax brackets in 2026?

Six brackets, from 0% up to 800,000 euros to 1.50% above 10,000,000 euros. The IFI tax schedule comprises six brackets. The first bracket covers assets from 0 to 800,000 euros and is taxed at 0%. The second bracket, from 800,001 euros to 1,300,000 euros, is taxed at 0.50%. The third bracket, from 1,300,001 euros to 2,570,000 euros, is taxed at 0.70%. The fourth bracket, from 2,570,001 euros to 5,000,000 euros, is taxed at 1%. The fifth bracket, from 5,000,001 euros to 10,000,000 euros, is taxed at 1.25%. Above 10,000,000 euros, the rate is 1.50%.

In practice, net taxable assets of 2,000,000 euros generate an IFI of: (500,000 x 0.50%) + (700,000 x 0.70%) = 2,500 euros + 4,900 euros = 7,400 euros. The effective average rate is then 0.37% of total assets.

Assets of 3,000,000 euros generate: 2,500 euros + 8,890 euros + 4,300 euros = 15,690 euros, or an average rate of 0.52%.

Which allowances and debts reduce the tax base?

The primary residence benefits from a flat 30% allowance on its market value. For an apartment of 150 m² in the 7th arrondissement valued at 2,400,000 euros, the value retained for IFI is 1,680,000 euros. This allowance is the most significant provision in the framework.

Deductible debts include outstanding mortgage loans (capital remaining on January 1), maintenance works owed by the owner but not yet paid, the previous year’s property tax, and debts related to the acquisition or improvement of taxable assets.

Important note: since 2018, bullet loans (prets in fine) are subject to a fictitious straight-line amortisation for IFI purposes. In other words, the deductible debt is reduced each year by a flat amount corresponding to the loan term, even though the capital is only repaid at maturity.

For an investor holding their portfolio through an SCI, the SCI shares are valued at the level of the company’s net real estate assets after debts. Partners’ current accounts constitute deductible debts for the company, but not for the partner holding the receivable.

How much IFI do you pay on a typical Parisian portfolio?

Two concrete cases: 3,270 euros for a couple whose net taxable assets reach 1,410,000 euros, 10,620 euros for an investor at 2,460,000 euros net of debts. Here is the calculation, step by step.

First example: a couple owns a primary residence in the 6th arrondissement valued at 1,800,000 euros and a rental studio in the 11th valued at 350,000 euros. The outstanding loan on the studio amounts to 200,000 euros.

Tax base calculation: primary residence after 30% allowance = 1,260,000 euros. Studio = 350,000 euros minus 200,000 euros in debt = 150,000 euros. Net taxable assets = 1,410,000 euros.

IFI owed: (500,000 x 0.50%) + (110,000 x 0.70%) = 2,500 euros + 770 euros = 3,270 euros.

Second example: an investor holds three rental apartments in Paris (total value 2,800,000 euros), a primary residence in Île-de-France (800,000 euros) and SCPI shares (200,000 euros in real estate fraction). Total debts amount to 1,100,000 euros.

Tax base: primary residence after allowance = 560,000 euros. Rental properties + SCPI = 3,000,000 euros. Gross total = 3,560,000 euros. Net of debts = 2,460,000 euros.

IFI owed: (500,000 x 0.50%) + (1,160,000 x 0.70%) = 2,500 euros + 8,120 euros = 10,620 euros.

For substantial portfolios, the question of direct versus indirect ownership arises. A property hunter involved early in the acquisition process can guide buyers towards appropriate legal structures, in coordination with the buyer’s wealth management advisor.

The IFI cap provides that the total of IFI and income taxes cannot exceed 75% of the taxpayer’s income. If this threshold is exceeded, the excess reduces the IFI. This mechanism protects taxpayers whose assets are high but whose income is modest.

The IFI declaration is filed at the same time as the income tax return, using form 2042-IFI. No separate declaration is required. The deadline follows the income tax calendar, generally between May and June.

Frequently asked questions

What is the exact IFI trigger threshold in 2026?

The IFI trigger threshold is set at 1,300,000 euros in net taxable real estate assets. However, the progressive brackets apply from 800,000 euros. In other words, a 1,400,000 euro portfolio is taxed on the bracket above 800,000 euros, not above 1,300,000 euros.

Does the 30% allowance on the primary residence apply automatically?

Yes, the 30% allowance on the market value of the primary residence applies automatically, without any specific procedure. It only covers the property occupied as the taxpayer’s primary residence on January 1 of the tax year. Secondary residences do not qualify for any allowance.

Are SCPI and OPCI shares included in the IFI tax base?

Yes, shares in SCPI, OPCI and any real estate investment vehicle are included in the IFI tax base at their value representing real estate assets. Management companies communicate the taxable fraction for IFI purposes each year.

How are properties valued for IFI calculation?

Properties are valued at their market value on January 1 of the tax year, meaning the price at which they could be sold on the open market. In Paris, the price per square meter references published by notaires for each arrondissement serve as the standard basis. Deductible debts (outstanding loans) are subtracted.

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Looking to optimise your Parisian property portfolio in light of the IFI? Our property hunters help you identify assets offering the best balance between yield and tax exposure. Contact us to discuss your strategy.