French property wealth tax (IFI) 2026: threshold, rates

Who pays the IFI and on which assets

According to service-public.gouv.fr, the IFI applies to the foyer fiscal IFI (IFI tax household), which is not quite the same as for income tax: a single person, or two people living as a couple (married, in a Pacs (civil partnership) or cohabiting), plus the assets of minor children whose assets they administer. The 2026 practical guide (brochure pratique) of the DGFiP (Direction générale des finances publiques, the French tax authority) specifies that an adult child attached to their parents’ tax household forms an IFI household on their own.

The tax base depends on tax residence:

• resident in France: property located in France and abroad;
• resident outside France: property and property rights located in France only;
• new arrival not resident in France during the previous 5 calendar years: taxed on French property only for 5 years.

The tax base includes: houses, flats and outbuildings (garage, cellar, parking space), whether occupied or let, buildings under construction on 1 January, land, property rights (usufruct, right of use), shares in companies to the extent of their property assets, and the property portion of surrenderable unit-linked assurance-vie (life insurance) contracts. Holdings representing less than 10% of the capital of a property-owning company are, subject to conditions, outside the tax on indirectly held property.

In the case of démembrement (split ownership), as a general rule the usufruitier (usufructuary, holder of the life interest) declares the property at its full-ownership value; certain situations provided for by law, such as the surviving spouse’s statutory usufruct, divide the tax between the usufructuary and the nu-propriétaire (bare owner).

The 2026 scale and tapering relief

The tax is calculated on the net taxable value, by band (service-public.gouv.fr, F138; 2026 guide, p. 338):

Tapering relief: if net taxable assets are between €1,300,000 and €1,400,000, the tax is reduced by €17,500 − 1.25% × net taxable assets. Service-public.gouv.fr gives the example of assets of €1,350,000: gross IFI of €2,850, relief of €625, leaving €2,225 to pay.

Applying the same scale, net taxable assets of €2,000,000 give €500,000 × 0.50% + €700,000 × 0.70% = €7,400, with no tapering relief.

Two mechanisms can then reduce the bill:

• donations to certain public-interest organisations: a reduction of 75% of the donations, up to a limit of €50,000;
• plafonnement (cap): if the IFI plus the taxes on the previous year’s income exceed 75% of that income, the excess is deducted from the IFI.

The 30% main-residence allowance and exemptions

Each property is declared at its valeur vénale (market value) on 1 January, i.e. the price at which it could have been sold on the market. The main residence benefits from a 30% allowance on that value (service-public.gouv.fr; 2026 guide). A main home valued at €1,000,000 therefore enters the tax base at €700,000.

The 1 January date is decisive: a property sold subject to a condition precedent before that date remains in your assets until the condition is fulfilled, and changes occurring between 1 January and the return are not taken into account, unless they have retrospective effect (service-public.gouv.fr, F562).

Exempt, in full or in part and subject to conditions: property used for your main professional activity, homes let by a loueur en meublé professionnel (professional furnished letting landlord), woods and forests (up to 75%) and rural property let on long leases (for 3/4 up to €101,897, for half above that, according to the 2026 guide).

Deductible debts

Assets are taxed net: debts existing on 1 January, supported by evidence and relating to taxable assets, are deducted (service-public.gouv.fr; 2026 guide). Deductible debts include in particular those relating to:

• the acquisition of property or property rights (outstanding capital on the loan);
• improvement, construction, reconstruction or extension works;
• maintenance works borne by the owner;
• taxes due on that property, such as the taxe foncière;
• the acquisition of company shares, in proportion to their property assets.

Not deductible are the taxe d’habitation (council tax), which is payable by the occupier, and the portion of income tax relating to rental income. Debts relating to a fully exempt property are not deductible. Finally, above €5 million of taxable assets, the portion of debts exceeding 60% of their value is only allowed at 50%.

Declaring and paying the IFI

The IFI is declared at the same time as the income tax return, in the spring: in 2026, with 2025 income (service-public.gouv.fr, F31444). In practice:

• filing online is compulsory if your main residence has internet access and you are able to do so;
• on paper, form 2042-IFI and its schedules are used, attached to the income tax return; according to the 2026 guide, box ØIF on the income tax return must be ticked;
• a taxpayer who does not file a personal income tax return (non-resident, attached adult child) files the 2042-IFI with form 2042-IFI-COV.

The tax notice sets the payment date. Above €300, payment online is compulsory. The penalties: a 10% surcharge for late payment; for late filing, 10% within 30 days of a formal notice, then 40%, plus late-payment interest of 0.20% per month. An undervaluation made in good faith of up to 10% is tolerated without late-payment interest.

The 2027 return, covering assets on 1 January 2027, will open in April 2027, according to service-public.gouv.fr.

Which professional to consult

The market value of each property is the main item in the IFI: a notaire (notary) or an agent immobilier (estate agent) can provide a reasoned valuation as at 1 January. For land or a property with uncertain boundaries, the géomètre-expert (chartered land surveyor) establishes the surface areas. If you finance a purchase with a loan, the courtier en crédit (mortgage broker) can cost the loan, whose outstanding capital will be deductible. Calculating the tax itself is a matter for the tax office or a tax adviser.