French Government Launches Consultation on 2026 Property Tax Changes Amid Criticism

The French government has announced a "flash consultation" involving parliamentarians and local authorities to examine necessary updates to the property tax system for 2026. The consultation aims to enhance transparency, clarity, and fairness in property taxation by revising the calculation base, particularly focusing on comfort elements such as running water, electricity, and sanitation facilities. These factors currently inflate the taxable area and, consequently, the property tax owed by owners.

This update is projected to increase taxes for approximately 7.4 million property owners by 2026. The ministries responsible for Public Action and Accounts, and Territorial Development and Decentralization, stated that this initiative seeks to make the tax system more equitable and understandable.

However, the announcement has drawn criticism across the political spectrum. André Laignel, vice president of the Association of Mayors of France, expressed that local authorities did not request this tax base revision and argued that the timing of this consultation is inappropriate. He described the effort as potentially a "false maneuver." The National Union of Property Owners (UNPI) also condemned the planned increase, labeling it arbitrary and lacking transparency.

Government spokesperson Maud Bregeon has pledged that an update on the tax increase will be provided within a few months, underlining that local governments stand to benefit from the reform. Nonetheless, the consultation's reception highlights tension between governmental plans and the concerns of both political representatives and property owners ahead of these significant changes.