On 27 August 2026, the DGFiP published its annual comparative study on the direct local tax rates voted by French municipalities (communes) and intermunicipal cooperation establishments with their own tax powers (EPCI à fiscalité propre) for the 2026 fiscal year. The study, based on data transmitted by local authorities during the spring 2026 budget votes, covers the four main direct local taxes: property tax on built properties (TFPB), property tax on unbuilt properties (TFPNB), housing tax on secondary residences (THRS), and the territorial economic contribution (CET) components — business premises contribution (CFE) and value-added contribution (CVAE). The analysis highlights national trends, regional disparities, and the impact of the ongoing housing tax reform on primary residences. The report serves as a reference for taxpayers, local elected officials, and fiscal policy researchers.
Key Takeaways
- Moderate Average Increase: The national average rate for the four taxes combined rose by 1.2% compared to 2025, below the inflation rate. However, significant heterogeneity exists: urban centers with high demographic pressure saw average increases of 2.5% to 3%, while rural communes often maintained stable or slightly decreasing rates.
- EPCI Rate Convergence: The study notes a continued convergence of tax rates within integrated EPCI structures (communautés d’agglomération, communautés urbaines, métropoles), where the gap between the highest and lowest municipal rates within the same EPCI has narrowed to an average of 15%, down from 22% five years ago, reflecting fiscal harmonization obligations.
- Housing Tax Phase-Out Impact: With the complete exemption of housing tax on primary residences effective since 2023, the THRS on secondary residences and vacant properties remains the only housing tax component. The report shows a 4% average increase in THRS rates, as some communes compensate for lost primary residence revenue by adjusting rates on the remaining taxable base.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement