Quick answer
Beyond income tax, France's main specific taxes in 2026 are the real-estate wealth tax (IFI) above EUR 1.3 million of net property, taxe foncière, taxe d'habitation on second homes, inheritance and gift tax from 5% to 60%, VAT at 20% (10%, 5.5%, 2.1% reduced), and a 3% to 4% surcharge above EUR 250,000 of income.
Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad
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Find my savings →You know about French income tax. The surprises usually come from the other taxes: on property, wealth, gifts, inheritances and high incomes. After this guide, you will know what each one costs in 2026, who pays it, and where the legal levers are.
France specific taxes in 2026: the key figures
| Tax | 2026 rule | Legal basis |
|---|---|---|
| Real-estate wealth tax (IFI) | Net real estate above EUR 1.3 million on 1 January; rates 0.5% to 1.5% from EUR 800,000 | Art. 964 and 977 CGI |
| Taxe foncière | Owner on 1 January; rate voted locally on half the cadastral rental value | Local taxation rules, CGI |
| Taxe d'habitation | Second homes only since 2023; optional surcharge in tight housing areas | Art. 1407 and 1407 ter CGI |
| Inheritance, children | EUR 100,000 allowance per parent, then 5% to 45% | Art. 777 and 779 CGI |
| Cash gift to a descendant | Extra EUR 31,865 exempt if donor under 80, renewable every 15 years | Art. 790 G CGI |
| High-income contribution (CEHR) | 3% / 4% above EUR 250,000 / 500,000 of reference income (single) | Art. 223 sexies CGI |
| Minimum 20% high-income tax (CDHR) | Applies to 2025 and 2026 income above the same thresholds | Finance laws 2025 and 2026 |
| VAT | 20% standard; 10%, 5.5% and 2.1% reduced | Art. 278-0 bis to 279 bis CGI |
What changed for 2026
- Minimum tax on very high incomes extended. The contribution différentielle sur les hauts revenus (CDHR) now covers 2026 income too. For 2026, you declare it online between 1 and 15 December 2026 and pay a 95% instalment then (Service-Public).
- Social levies split in two. Under the 2026 Social Security Financing Act, the general rate on investment income rose to 18.6%. Life insurance, PEL, CEL and PEP stay at 17.2%, and so do rental income and property gains (Service-Public).
- E-invoicing live. Since 1 September 2026, every VAT-registered business in France must be able to receive electronic invoices. Small businesses issue them from 1 September 2027.
Is this guide for you?
Read on if you…
- own, or plan to buy, property in France;
- have high income, large assets, or expect to give or inherit;
- live abroad but keep French real estate or family ties.
Probably not your case if you…
- rent your home and earn a moderate salary: income tax and VAT are your main French taxes;
- only want income tax deductions. See our guide to personal deductions and benefits in France.
How does the French real-estate wealth tax (IFI) work?
The impôt sur la fortune immobilière (IFI) only counts real estate: homes, rental flats, land, property rights, and some shares in property companies and property funds. Shares, savings and crypto are outside.
| Net taxable real estate | Rate |
|---|---|
| Up to EUR 800,000 | 0% |
| EUR 800,001 – 1,300,000 | 0.5% |
| EUR 1,300,001 – 2,570,000 | 0.7% |
| EUR 2,570,001 – 5,000,000 | 1% |
| EUR 5,000,001 – 10,000,000 | 1.25% |
| Above EUR 10,000,000 | 1.5% |
You only pay if net real estate exceeds EUR 1.3 million on 1 January 2026. Once you do, the scale starts at EUR 800,000. Between EUR 1.3 and 1.4 million, a décote of EUR 17,500 minus 1.25% of the net value softens the bill (Service-Public, IFI calculation).
Three rules shape the bill:
- Main home. Its value gets a 30% allowance.
- Debts. Debts existing on 1 January are deductible if you can document them.
- Cap. For French residents, IFI is reduced when it plus the previous year's income taxes exceed 75% of that year's worldwide income.
Who counts what? Residents declare property in France and abroad. Non-residents declare only French property and French property-company shares. A newcomer who was non-resident for the five previous calendar years is taxed only on French property for five years (art. 964 CGI on Service-Public).
You declare IFI with your income tax return, in spring. Without a French income return, as many non-residents are, you file form 2042-IFI with form 2042-IFI-COV. Gifts to general-interest bodies reduce IFI by 75% of the amount, up to EUR 50,000.
Which local and property taxes apply?
Taxe foncière
The owner or usufructuary on 1 January pays it, resident or not. The base is half the cadastral rental value, revalued each year, and local authorities vote the rates. Notices go out from September, in the last part of the year (Service-Public).
Taxe d'habitation on second homes
Taxe d'habitation on main homes was abolished on 1 January 2023. It still applies to furnished homes that are not your main residence, based on your situation on 1 January. Owners, tenants and free occupants with permanent use can all owe it. Towns in tight housing areas can vote a surcharge.
Buying and selling property
Buying an existing home triggers registration duties collected by the notary, plus the notary's regulated fees. Use the official cost simulator listed on Service-Public before you sign, because departmental rates differ.
Selling? Property gains and their 17.2% social levies are covered in our guide to capital gains tax in France.
How are gifts and inheritances taxed in France?
France taxes each heir, not the estate, with allowances and rates that depend on the relationship (Service-Public, inheritance).
| Heir | Allowance | Rates |
|---|---|---|
| Spouse or PACS partner | Fully exempt | 0% |
| Child (per parent) | EUR 100,000 | 5% to 45% |
| Sibling | EUR 15,932 (exempt under three conditions) | 35% up to EUR 24,430, 45% above |
| Nephew or niece | EUR 7,967 | 55% |
| Unrelated person | EUR 1,594 | 60% |
For children, the scale reaches 20% at EUR 15,933 of taxable share and 45% above EUR 1,805,677. A disabled heir gets an extra EUR 159,325 allowance.
Giving during your lifetime
Each allowance covers gifts from the same donor to the same person over 15 years. A child gets EUR 100,000 from each parent, taxed above that on the same 5% to 45% scale. Grandchildren get EUR 31,865, a spouse or PACS partner EUR 80,724. On top, a cash gift to an adult descendant is exempt up to EUR 31,865 if the donor is under 80 (art. 790 G CGI on Service-Public). A child can therefore receive EUR 131,865 tax-free from each parent.
When does French inheritance tax apply across borders?
If the deceased or donor lived in France, worldwide assets are in scope. If not, French assets are taxed, and worldwide assets too when the heir has been French tax resident for at least six of the last ten years, according to PwC's summary (secondary). Treaties can change the outcome, so read our guide to France's international tax treaties.
Which extra taxes hit high earners?
- CEHR. The contribution exceptionnelle sur les hauts revenus adds 3% on reference income between EUR 250,001 and 500,000 for a single person, and 4% above. Couples pay 3% between EUR 500,001 and 1,000,000, and 4% above.
- CDHR. It tops up your bill so that income tax, CEHR and flat levies reach 20% of adjusted reference income. For the comparison, the taxes you paid are increased by EUR 1,500 per dependant and EUR 12,500 for jointly taxed couples. Late or short payment costs a 20% penalty.
- Social levies. 18.6% on most investment income in 2026, 17.2% on rental income, property gains and life insurance.
A single person with EUR 400,000 of reference income pays EUR 4,500 of CEHR. Planning a business exit? Our guide to legal forms of business in France covers the dividend side.
What about VAT for individuals and small businesses?
The standard rate is 20%. A 10% rate covers restaurant and takeaway meals and renovation of homes over two years old. A 5.5% rate covers most food and energy-saving works. A 2.1% rate covers medicines reimbursed by social security (Service-Public, food VAT rates).
Small businesses under the franchise thresholds, EUR 85,000 for sales and EUR 37,500 for services, charge no VAT (Service-Public). Most freelancers also pay the CFE, a local business property tax.
Example – Daniel, 52, British consultant living in Nice
On 1 January 2026, Daniel's main home is worth EUR 1,200,000 and his rental flat EUR 500,000, with no mortgage. The 30% allowance brings the home to EUR 840,000, so his net IFI base is EUR 1,340,000. Scale: 0.5% on EUR 500,000 (EUR 2,500) plus 0.7% on EUR 40,000 (EUR 280), so EUR 2,780. Décote: EUR 17,500 minus 1.25% of EUR 1,340,000, so EUR 750. Daniel pays EUR 2,030 of IFI in 2026.
Daniel's IFI hinged on one allowance and one décote. Your property mix may hide similar levers.
Heavnn reviews your French property, wealth and income taxes together and shows where the savings are.
Find my savings →Common mistakes (and what they cost)
- Leaving foreign property out of the IFI → reassessment plus late-payment interest of 0.20% a month.
- Filing the IFI late → a 10% surcharge, rising to 40% if you file more than 30 days after a formal notice.
- Gifting too late → you miss a fresh 15-year allowance window, and EUR 100,000 above the allowance costs a child EUR 18,194 of gift tax.
- Forgetting the CEHR and CDHR in the year of a big exit → 3% or 4% on top of the flat tax on the gain.
- Assuming non-residents escape local taxes → taxe foncière and taxe d'habitation follow the property, not the owner's residence.
Frequently asked questions
Does France still have a wealth tax?
Only on real estate. The IFI applies when your household's net real estate exceeds EUR 1.3 million on 1 January. Rates run from 0.5% to 1.5%, starting at EUR 800,000. Residents count worldwide property; non-residents count only French property. Your main home gets a 30% allowance, and documented debts are deductible.
Do non-residents pay taxe foncière in France?
Yes. Taxe foncière is due by whoever owns the property, or holds its usufruct, on 1 January, wherever they live. Local authorities set the rates, and notices go out from September. If the home is furnished and not your main residence, you will usually owe taxe d'habitation on second homes as well.
How much is inheritance tax in France?
It depends on the relationship. Each child gets a EUR 100,000 allowance per parent, then pays 5% to 45%. Spouses and PACS partners are fully exempt. Siblings pay 35% to 45% after a EUR 15,932 allowance, nephews and nieces 55%, and unrelated heirs 60% after EUR 1,594.
How much can I give my children tax-free in France?
Each parent can give each child EUR 100,000 free of gift tax every 15 years. On top, a cash gift to an adult child is exempt up to EUR 31,865 if you are under 80, also renewable every 15 years. A child can therefore receive EUR 131,865 from each parent without gift tax.
What is the high-income contribution in France?
The CEHR adds 3% on reference income between EUR 250,000 and 500,000 for a single person, and 4% above. Couples pay 3% between EUR 500,000 and EUR 1 million, and 4% above. For 2025 and 2026 income, the CDHR also makes sure these households pay an average rate of at least 20%.
What VAT rates apply in France in 2026?
The standard rate is 20%. A 10% rate applies to restaurant and takeaway meals and home renovation works. A 5.5% rate covers most food and energy-saving works. A 2.1% rate applies to medicines reimbursed by social security. Small businesses under the franchise thresholds charge no VAT.
Related guides
- Capital gains tax in France
- Personal tax deductions and benefits in France
- France's international tax treaties
- Tax fraud rules and penalties in France
- The French tax system at a glance
- Specific taxes applicable in Malta
- Specific taxes in Austria
- All country tax guides
Sources
- Calcul de l'impôt sur la fortune immobilière – Service-Public.gouv.fr (DILA)
- IFI: personnes et biens concernés – Service-Public.gouv.fr (DILA)
- Droits de succession – Service-Public.gouv.fr (DILA)
- Droits de donation – Service-Public.gouv.fr (DILA)
- CEHR and CDHR – Service-Public.gouv.fr (DILA)
- Prélèvements sociaux sur les revenus du capital – Service-Public.gouv.fr (DILA)
- Taxe d'habitation sur les résidences secondaires – Service-Public.gouv.fr (DILA)
- PwC Worldwide Tax Summaries – France: Other taxes (secondary)
This guide is general information, not personalised tax advice. See how we research and review.
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