Increase in property taxes looms for households in 2026, set to be a continued financial strain
In the heart of France, residents are feeling the pinch of rising property taxes. Over the past decade, the average property tax in France has seen a significant increase, reflecting a combination of rising property values and adjustments in tax rates and bases [1]. This trend is evident in cities like Villeurbanne, Rhône, where a retiree now pays an extra 20 euros per month due to a 10% increase in property tax in 2025 [2].
This upward trajectory is not exclusive to Villeurbanne. Across France, property taxes have risen by an average of 33% over the past ten years [3]. In Saint-Étienne, Loire, the property tax surpasses the average of two annual loan payments in cities where housing is cheaper [4]. Here, a resident may pay as much as 150 euros per month, equating to more than three monthly loan payments [4].
The increase in property taxes can be attributed, in part, to the municipalities' efforts to compensate for a decrease in state funding [5]. This trend of increasing property taxes is expected to continue, according to Meilleurtaux [6].
A retiree interviewed in Villeurbanne, Rhône, considers the 10% increase in property tax as significant, stating that it amounts to 1% of his pension [7]. The approximate annual increase in property tax in Villeurbanne, Rhône, is 200 euros [8].
Last year, municipalities' revenues linked to the property tax increased by 2 billion euros [9]. In cities where housing is cheaper, the property tax represents an increasingly important part of households' expenses, averaging 1.3 monthly loan payments [10].
The president of the National Union of Real Estate Owners, Sylvain Grataloup, confirms the upward trend, stating that the property tax has increased by an average of 33% over ten years in France [3]. As for 2026, while official forecasts for property tax increases are not explicitly available, given the historical pattern of growth and France's relatively stable inflation rate, a continuation of moderate increases is expected, tracking inflation and market conditions [1][2].
As we move forward, more precise figures and forecasts from French government or official real estate tax reports may provide greater clarity regarding the future of property taxes in France.
Amidst this rise in property taxes, many French residents are reconsidering their personal-finance strategies, as the increase represents a substantial portion of their expenses. In turn, the ongoing growth of property taxes is evoking concerns in the business sector, potentially deterring potential home buyers or investors in the French market.
