French wealth tax (IFI) for residents: threshold, tax brackets, 30% allowance, and deductible debts.

You are liable for the French wealth tax (IFI) if your net taxable real estate assets exceed €1,300,000 on January 1st. Once this threshold is crossed, the tax brackets start at €800,000, with rates ranging from 0.50% to 1.50%. Two factors influence the calculation: the 30% allowance on your primary residence and the deduction of debts related to your taxable assets.

This page deals with people who are tax residents of France.

Who is liable, and by what date?

The IFI (French wealth tax) is assessed per household: a single person, or a couple (married, in a civil partnership, or cohabiting) with their minor children under legal guardianship. The IFI household can be different from the income tax household. An adult child, even if included in their parents' tax household for income tax purposes, constitutes an IFI household in their own right.

The reference date is January 1st. For the IFI 2026, it is January 1st, 2026. Assets are valued at their market value on that date, i.e. at the price at which they could have been sold on the market.

The threshold is €1,300,000 of net taxable assets. Below this threshold, no IFI (French wealth tax) is due, even if your real estate assets exceed €800,000.

What goes into the database

This includes buildings, whether used for your personal purposes or rented out, historical monuments, buildings under construction, undeveloped land, real rights such as usufruct, and shares in companies holding real estate, up to the value of that real estate.

Certain assets are excluded from the base or partially exempt, under certain conditions:

• real estate used for industrial, commercial, craft, agricultural or professional activity carried out as the main activity by a member of the household, in individual form (annex 1 of the declaration to be filed, with box 9BZ to be ticked); ;
• forests and shares in forestry groups, exempt at 75 % under certain conditions; ;
• Rural properties leased on a long-term basis and shares in non-operating agricultural land groups are exempt by three-quarters up to a value of €101,897, and then by half beyond that. This €101,897 limit applies separately to rural properties and shares in agricultural land groups.

The detailed conditions for these exemptions, those for business assets held through a company, and those for furnished professional rentals are not addressed here. They are verified on a case-by-case basis.

The IFI tax scale

This scale applies to assets as of January 1, 2026 (2026 declaration).

The discount is between €1,300,000 and €1,400,000

For net taxable assets of at least €1,300,000 and less than €1,400,000, a discount reduces the tax. This discount is calculated as €17,500 minus 1.25 times the net taxable assets. The net IFI (French wealth tax) is the IFI calculated according to the standard tax scale, minus this discount.

The line item at €1,350,000 follows the example published by the administration on service-public.gouv.fr.

The 30% tax allowance on the main residence

The main residence is declared at its actual market value less 30%. A main residence valued at €1,000,000 is therefore included in the base at €700,000.

In a joint tax return, only one property benefits from the allowance. The amount is entered in box 9AA of the 2042-IFI tax return.

Deductible debts

A debt is deductible if it meets these conditions:

• it exists on January 1st of the tax year; ;
• It was contracted by a member of the household and is effectively being borne; ;
• it relates to a taxable asset: acquisition, works, or taxes such as property tax; ;
• It is justified.

If the asset is only partially taxable, the deduction is proportional. Work-related debts are entered in box 9GF, other debts in box 9GH.

Debt ceilings for large fortunes

When the value of taxable assets exceeds €5,000,000 and deductible debts exceed 60% of this value, the excess debt is deductible only up to 50%. This limit does not apply to debts that the taxpayer can demonstrate were not incurred primarily for tax purposes.

For example, with €6,000,000 in taxable assets and €4,500,000 in debts, all subject to the limit, the 60 % threshold is €3,600,000. The €900,000 excess is counted as €450,000. The debts taken into account are €4,050,000 and the net taxable assets are €1,950,000.

What this page does not cover

The list of non-deductible debts, and the relationship between the 30% allowance and debts related to the main residence, are not addressed here. These should be verified before completing the tax return.

Income and gift cap

Capping. The French wealth tax (IFI) is reduced by the excess of the total (IFI plus taxes due in France and abroad on the previous year's income) over 75% of the net worldwide income (after professional expenses) of the previous year. It is reserved for taxpayers domiciled in France for tax purposes. It is declared in boxes 9PR and 9PX. Specific cases are not addressed here.

Gifts. A 75% IFI reduction for gifts to certain organizations of general interest is possible, up to a limit of €50,000 (boxes 9NC and 9NG).

Declare and pay

The IFI (French Wealth Tax) is declared with the income tax return, either online or on form 2042-IFI attached to the paper 2042 return, by checking box ØIF. If no income tax return is required, form 2042-IFI-COV is completed and box 9GN is checked.

These dates are for the 2026 campaign, which has now ended. The dates for the 2027 campaign are not yet known as of the date of this page.

Numerical example (fictitious profile)

Situation. A couple residing in France owns, as of January 1, 2026, their primary residence, valued at €1,200,000, and a rented apartment worth €700,000, purchased with a loan. The outstanding balance on this loan is €180,000 at that date. They own no other assets.

Issue. The gross assets amount to €1,900,000. However, the €1,300,000 threshold is assessed on the net taxable assets: the amount of IFI depends on the base reconstructed line by line, and an omission of allowances or debts changes the result.

Strategy. Reconstruct the base on January 1st: main residence with the 30 % allowance in box 9AA, apartment in box 9AB, debt deducted.

Result.

Variants of the same case: €4,180 IFI if the debt is not deducted (based on €1,540,000), and €5,440 without the 30% % allowance (based on €1,720,000).

The profile is fictitious and the values are assumed. The calculation does not take into account any caps, gifts, or exemptions. These figures illustrate the mechanism and do not predict the outcome in your specific situation.

What changes depending on your situation

• The composition of your IFI household.
• The market value of each asset on January 1st.
• The presence of assets used for your professional activity.
• Debts existing on January 1st, their purpose and supporting documentation.
• The importance of your assets: the debt cap only applies to taxable assets exceeding €5,000,000.
• Your income from the previous year and your taxes, for the capping.

No results are promised: the rule depends on your situation.