Property tax: who pays it and how is it calculated?

Property tax on built properties is payable by the owner or usufructuary of the property on January 1st of the tax year. It is due even if the property is rented. The tax base is equal to half the cadastral rental value; the rates are set by local authorities. If you sell during the year, the tax authorities do not take the change of ownership into account.

This page describes these rules based on information from service-public.fr and economie.gouv.fr. It does not provide rates or coefficients for the 2026 revaluation; these values should be verified with the relevant government department. It does not address joint ownership, bare ownership, or exemptions (see the dedicated page).

Who pays, depending on the situation

January 1st determines the debtor

According to service-public.fr, property tax is due from the owner or usufructuary on January 1st, and the tax authorities do not take into account changes of ownership during the year. Economie.gouv.fr uses the same date for both the owner and the usufructuary.

Selling during the year: a division agreed upon between the parties

The seller and buyer can agree, usually at the notary's office on the day of the sale, to divide the property tax proportionally to the year, based on the most recent property tax bill. This division makes no difference to the tax authorities: they do not take into account changes of ownership during the year.

The property is rented

Property tax and the household waste collection tax (TEOM) remain payable by the owner even if the property is rented. Service-public.fr specifies that the TEOM is one of the charges that can be recovered from the tenant.

Sale as a life annuity with reservation of use

Service-public.fr indicates that it is the buyer who must pay the property tax every year.

What is taxable

A structure is taxable if it is permanently fixed to the ground, cannot be moved without being demolished, and constitutes a true building, including any fixtures and fittings that are an integral part of it. Mobile homes and caravans are exempt, unless they are fixed in place by masonry anchors.

How is the tax calculated?

Three elements are involved in the calculation.

1. The cadastral rental value. Economie.gouv.fr describes it as a theoretical annual rent that the owner could receive from the property if it were rented out. It is updated and revalued each year. The 2026 coefficient is not given here: it must be verified with the tax authorities.
2. The tax base. Service-public.fr: it is equal to half the cadastral rental value. Economie.gouv.fr, for its part, describes a flat-rate reduction of 50 % which takes into account management fees.
3. The rates. They are voted on by local authorities. This page does not list any: your tax notice indicates those that apply to your property.

The calculation described by economie.gouv.fr multiplies the taxable base by the applicable tax rates.

Report the changes

If your property has not been modified within the year, you do not need to do anything. Otherwise, the declaration must be made no later than 90 days after the completion of the work, via the Public Finances website or using forms H1 (detached house), H2 (apartment) or IL (change of physical characteristics or use).

Income-based cap

For primary residences, the cap eliminates the portion of the tax exceeding 50% of the household's income. This assumes that the taxpayer was not subject to the IFI (French wealth tax) the year preceding the tax year. For the 2026 tax (income received in 2025), service-public.fr sets income limits in mainland France not exceeding €30,083 for one tax unit, €42,645 for two tax units, and €53,711 for three tax units. Applications must be submitted to the public finance center no later than December 31st of the year following the tax collection date (economie.gouv.fr).

Property tax calculation: numerical example (fictitious profile)

Situation. A Lyon-based owner is selling an apartment on June 30, 2026. Hypothetical profile assumptions: last property tax notice of €1,825 (hypothetical amount), 365-day year, day-by-day allocation between the parties, with the day of sale being counted on the seller's side.

Issue. Who pays for what in 2026, and on what basis?

Strategy. Apply the January 1st rule with respect to the administration, then agree with the buyer, generally at the notary's office, on a pro rata division based on the last known notice.

Result.

The seller pays €1,825 to the tax authorities and then receives €920 from the buyer, if the deed stipulates this split. As a reminder, the tax base is half the cadastral rental value: a value of €4,000 would result in a tax base of €2,000. This base is unrelated to the hypothetical tax assessment in the example, as the amount of a tax assessment depends on tax rates, which are not used here. The profile is fictitious: the amounts are hypothetical and the calculation does not prejudge your situation.

Property tax calculation: what changes depending on your situation

• Your status as of January 1st. Owner, usufructuary or buyer in a life annuity with reservation of use: the liable party is not the same.
• The date of the sale. It counts towards the division of assets at the notary's office, but not towards the administration.
• Your municipality and your inter-municipal authority. The rates are voted on locally.
• A property held in joint ownership or with divided ownership. This page does not deal with these cases: they must be examined on a case-by-case basis.
• Work to be done during the year. A declaration may be required within 90 days.

The rule depends on your situation. No results are guaranteed.