Understanding the Taxe d’Habitation in France

The Taxe d’Habitation is one of France’s local property taxes, traditionally paid each year by the person occupying a home on January 1st — whether they were the owner, tenant, or living rent-free. Its purpose was to help fund local services such as waste collection, public transport, and community facilities.

However, this tax has undergone a major reform. Since 2023, most main residences are now exempt, meaning homeowners who live full-time in their property no longer pay it. The reform was designed to reduce the burden on households, with the French government gradually phasing it out between 2018 and 2023.

Who Still Pays the Taxe d’Habitation?

Although the tax no longer applies to principal homes, it continues for second homes and certain vacant properties. If you own a holiday home or a pied-à-terre in France, you are likely still liable. The rate varies by commune, as local councils set their own percentages based on local budgets.

Some municipalities — particularly in areas with high housing demand such as Paris, Bordeaux, or the Côte d’Azur — apply a surcharge (majoration) of up to 60% on the standard rate for second homes. This is intended to discourage empty properties and make more housing available for residents.

How the Tax Is Calculated

The amount due is based on the property’s “valeur locative cadastrale”, which represents its theoretical annual rental value as determined by the tax authorities. This figure is adjusted each year and multiplied by the commune’s tax rate. Larger homes in desirable areas naturally attract higher bills.

You will usually receive your avis d’imposition (tax notice) in autumn, with payment due by mid-November if paying online or slightly earlier by cheque or cash.

Exemptions and Reductions

While the main residence exemption covers most people, there are still some reliefs for certain groups:

• Students living in university accommodation or shared rentals may be exempt.

• Low-income individuals, people with disabilities, and retirees with modest pensions may also qualify for reductions on second-home liabilities.

• If your second home is uninhabitable due to renovations or damage, you can request a temporary exemption by contacting your local centre des impôts fonciers.

The Difference Between Taxe d’Habitation and Taxe Foncière

It’s important not to confuse the two. The Taxe Foncière is paid by property owners each year, regardless of whether the property is occupied or rented out. The Taxe d’Habitation, by contrast, was historically linked to the occupant — and now only applies to second homes or vacant dwellings.

Key Takeaways

• Main homes: no longer taxed since 2023.

• Second homes: still taxed, often with a surcharge in high-demand areas.

• Vacant properties: may be taxed to encourage occupancy.

• Local rates: vary by commune, and bills arrive each autumn.

For anyone buying or owning property in France, understanding the Taxe d’Habitation helps you plan your annual costs more accurately — especially if you maintain a holiday home.