French property tax hits owners of lower-value homes disproportionally

French property tax hits the buyers of lower-value properties disproportionately, and can represent up to two months of mortgage repayments in some areas, according to a report by broker Meilleurtaux.

The taxe foncière property tax, which is payable by all property owners in France, increased by an average of 10.8% in 2024.

While the average taxe foncière bill is €811 for an apartment and €1,019 for a house, in places with greater housing pressure it can be much higher.

This is due to the way that the tax is calculated: the taxe foncière rises in line with the property market, by accounting for sales values and rental prices in the commune.

Accordingly, it rises more in communes with greater rental pressure.

Read more: How do over-75s apply for taxe foncière exemption in France?

However, the new study by Meilleurtaux shows that this tax hits harder in less expensive areas. 

“It depends on the property market prices," Maël Bernier, head of communications at Meilleurtaux told Europe 1.

"Paris is a textbook case. To buy 70 square metres, you have to be able to pay back €3,800 a month [mortgage repayments] so €1,257 in property tax [a year] isn't going to change the world".

In an area where property prices are lower, such as Perpignan or Nîmes, the rate is proportionally higher.

"To buy a 70 square metre property, you have to pay €571 a month [mortgage repayments], which is very low. But the property tax is going to represent two months of payments: more than €1,200 [a year]. So the burden is proportionately greater.”

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Reductions and exonerations are available

You can apply for a reduction of your taxe foncière bill if:

• It exceeds 50% of your income

• It is for a rental property that has been vacant for at least 3 months, either due to not finding a tenant, ongoing building work or damage. This can also apply to a part of the property (if the car park is unavailable, for example)

• You are aged between 65 and 75 with a taxable annual income of less than €11,885

You can apply for an exemption from taxe foncière if:

• Your home is less than two years old

• You have added a room to your house, built an outbuilding, garage or swimming pool these extensions are exempt from taxe foncière for two years.

• The home is a renovated rural building (barn or warehouse) completed within the past two years

• If you are over 75 and your reference annual tax income is less than €11,885

• If you receive ASPA, ASI or ANAH benefits