Paris Property Tax: Rates Among the Lowest Globally, Yet Rising for Second Homes

In some good news for Paris homeowners, basic local tax rates remain highly competitive compared to other global capitals. As confirmed in the 2026 fiscal session, the city continues to leverage high transaction volumes to keep baseline rates stable, a trend that has largely persisted for over a decade.

The Cost of Ownership in 2026

When you own a property in the capital, your fiscal responsibilities fall into three main categories: building dues, the French Real Estate Wealth Tax (IFI) Guide, and the two primary local taxes based on rental value: Taxe Foncière and Taxe d’Habitation.

Parisian rates for these taxes currently hover between 0.1% and 0.3% of the cadastral value—among the lowest in the world. The city hall has maintained this “low tax” promise primarily because the burgeoning property market generates significant revenue through stamp duty (registration taxes) on high-value transactions.

Transaction Trends and Revenue

Recent data from the Paris Notaires shows that while the market has stabilized, the volume of sales remains a massive source of income for the city. With stamp duty on existing properties at approximately 5.8%, the city can afford to keep basic property taxes flat for primary residents while still funding major urban infrastructure projects.

The “Pied-à-Terre” Surcharge

While basic taxes remain steady, the city council has maintained a strict strategy to combat the housing shortage. The taxe d’habitation surcharge on second homes and unoccupied properties is currently set at 60%.

This surcharge adds significant weight to the tax liabilities for the 90,000+ properties in Paris classified as vacant or secondary residences (occupied for less than 120 days a year). The goal is to prompt homeowners to transition these units into the Paris Long-Term Rental Market.

Frequently Asked Questions

What is Paris property tax?

• Paris property tax consists primarily of Taxe Foncière (paid by all owners) and Taxe d’Habitation (now only for second homes). Rates in Paris are among the lowest globally, typically 0.1% to 0.3%, though secondary residences face a significant 60% surcharge on the municipal tax portion.

Does the French Wealth Tax (IFI) apply to property in Paris?

• Yes. If the net value of your real estate assets in France exceeds €1.3 million, you are subject to the Impôt sur la Fortune Immobilière (IFI). This progressive tax applies to both residents and non-residents, with rates typically ranging from 0.5% to 1.5% depending on the total value of the portfolio.

What are the notary fees for buying a flat in Paris?

• For existing properties, total “notary fees” (which include transfer taxes) are approximately 7% to 8% of the purchase price. However, if you are buying a New Build Property in Paris, these fees are significantly reduced to approximately 2% to 3%.

Contact Paris Property Group to learn more about navigating the 2026 tax landscape when buying or selling property in Paris.