Property tax in Paris: calculation and amounts in 2026

Property tax in Paris represents an annual charge of 1,200 to 3,500 euros for a standard apartment, depending on the surface area, the arrondissement and the construction date. Since the 52% increase voted by the Paris City Council in 2023, this tax has become an essential element of every Parisian owner’s annual budget, and a factor to integrate from the very start when calculating the profitability of a property purchase.

Introduction

Property tax (taxe fonciere) is the local tax paid annually by the owner of a property on January 1st. Contrary to popular belief, Paris is not the most heavily taxed city in France: its rate remains lower than that of many Ile-de-France municipalities and provincial cities. But the sharp 2023 increase changed the equation, and ongoing plans to reform cadastral rental values, announced for years, could further alter the amounts in coming years.

For a buyer, property tax is part of the recurring owner charges to anticipate before signing. This guide details the calculation mechanism, average amounts by arrondissement and exemptions applicable in 2026.

Table of contents

• The property tax calculation mechanism
• Average amounts by arrondissement in Paris
• The impact of the 2023 increase
• Exemptions and reductions
• The cadastral rental value reform
• Integrating property tax into your purchase budget

The property tax calculation mechanism

Property tax is not calculated on the market value of your property, but on its cadastral rental value, an administrative estimate of the theoretical annual rent. This value, determined by the tax administration, is based on the property’s physical characteristics (surface area, amenities, location) and is revised annually by a flat-rate coefficient.

The tax base corresponds to 50% of the cadastral rental value (a flat 50% deduction for costs is applied automatically). The rate voted by the local authority is then applied to this base.

In concrete terms, for a 65 sqm apartment in the 11th arrondissement with a cadastral rental value of 8,400 euros, the taxable base is 4,200 euros. Applying the Parisian rate of approximately 20.5%, the municipal property tax amounts to 861 euros. Additional taxes (special equipment tax, GEMAPI tax) add 200 to 400 euros, bringing the total to approximately 1,100 to 1,300 euros.

The cadastral rental value is often far below the actual rental market. An apartment that would rent for 1,800 euros/month (21,600 euros/year) may have a cadastral rental value of 8,000 euros. It is this historical disconnect that the cadastral value reform aims to correct.

Average amounts by arrondissement in Paris

Property tax amounts vary significantly by arrondissement, primarily due to differences in cadastral rental values.

For a standard apartment of 60 to 70 sqm, average annual amounts in 2026 sit around 1,100 to 1,400 euros in the outer arrondissements (18th, 19th, 20th), 1,400 to 2,000 euros in the intermediate arrondissements (10th, 11th, 12th, 14th, 15th), and 2,000 to 3,500 euros in the central and premium arrondissements (1st, 6th, 7th, 8th, 16th).

These differences reflect the variations in cadastral rental values, themselves linked to the date of last revision and building characteristics. A large Haussmannian apartment in the 8th with cellars and outbuildings can reach 4,000 to 5,000 euros in annual property tax.

For prestige properties exceeding 100 sqm in the central arrondissements, property tax frequently exceeds 3,500 euros and can reach 6,000 euros for the largest apartments.

The impact of the 2023 increase

In October 2023, the Paris City Council voted a 52% increase in the municipal property tax rate, taking it from approximately 13.5% to 20.5%. This increase, the first significant one since 2011, had a direct and immediate impact on 2023 tax notices.

For an owner who was paying 1,000 euros in property tax in 2022, the bill rose to approximately 1,520 euros in 2023. For a family apartment in the 5th arrondissement, the increase represented 800 to 1,200 euros more per year.

This increase was justified by financing city investments (transport, schools, environmental transition). However, it has reduced Paris’s relative attractiveness compared to certain inner-suburb municipalities where rates have remained stable.

In 2026, the municipal rate is stabilised at the post-increase level. No further significant increase has been announced, but the annual flat-rate revision of cadastral values (approximately 3.4% in 2025) mechanically pushes the tax amount up each year.

Exemptions and reductions

Several cases of exemption exist to reduce the property tax burden.

The new-build exemption applies for 2 years from January 1st following completion of construction. For a purchase off-plan delivered in 2026 in the 13th arrondissement, this exemption represents a saving of 2,400 to 3,000 euros.

The exemption for elderly owners applies to those over 75 on January 1st, subject to income conditions (reference tax income below approximately 11,885 euros for a single person in 2026). A partial reduction exists for those aged 65-75.

The energy efficiency works exemption may be granted by the Paris City Council for a period of 3 years, for properties completed before 1989 that have undergone energy improvement works costing more than 10,000 euros. The exemption covers 50 to 100% of the tax.

The involuntary vacancy reduction applies when a property intended for rental remains vacant for more than 3 consecutive months, through no fault of the owner. The application must be made to the local tax office.

Landlord-owners can deduct property tax (excluding the waste collection tax) from their rental income under the regime reel (itemised) tax system.

The cadastral rental value reform

The reform of cadastral rental values, initially planned for 2026, has been postponed with no firm timetable. Its principle is to recalculate cadastral values based on actual market rents, replacing values dating from 1970.

The potential impact in Paris is considerable. Central arrondissements, where market rents are far above current cadastral values, would see their property tax increase significantly. Conversely, some outer neighbourhoods could benefit from a reduction.

According to available simulations, an apartment in the 6th arrondissement with a current property tax of 2,500 euros could see its amount double after reform. A property in the 19th at 1,200 euros could remain stable or decrease slightly.

The government has announced that the reform would include smoothing mechanisms to avoid sudden increases. The exact terms are not yet defined. This uncertainty makes property tax a parameter to watch for any medium-term property investor.

Integrating property tax into your purchase budget

Property tax must be factored into the total cost of ownership, alongside co-ownership charges, home insurance and maintenance costs.

For a 70 sqm apartment in the 15th arrondissement purchased for 650,000 euros, the annual ownership budget breaks down approximately as follows: property tax of 1,600 euros, co-ownership charges of 2,400 euros, home insurance of 400 euros and a works provision of 1,000 euros, totalling approximately 5,400 euros per year (450 euros/month) excluding mortgage repayment.

For a buy-to-let investment, property tax weighs directly on the net yield. On a 25 sqm studio in the 10th arrondissement rented at 900 euros/month, a property tax of 700 euros/year represents 6.5% of gross rental income.

Always request the amount of the latest property tax from the seller or agent before making an offer. This information is not mandatory in the listing but is part of the elements our property hunters verify in the analysis of each property.

FAQ

What is the property tax rate in Paris in 2026?

The municipal property tax rate in Paris is approximately 20.5% in 2026, following the 52% increase voted in 2023. This rate is applied to the cadastral rental value of the property, not its market value. Paris nevertheless remains in the lower average among major French cities.

Is property tax prorated when buying mid-year?

Legally, the owner on January 1st owes property tax for the entire year. In practice, an agreement between seller and buyer provides for a proration on the day of sale, written into the final deed. The buyer reimburses the seller for the portion corresponding to the post-sale period.

What property tax exemptions exist in Paris?

New-build properties benefit from a 2-year exemption. Owners over 75 meeting income conditions may be exempt. Properties that have undergone energy efficiency works may benefit from a partial 3-year exemption by decision of the city council.

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