Housing Tax in France: Calculation and Exemptions

The housing tax in France has evolved over recent years. As of 2025, it no longer applies to primary residences. However, it still remains in effect in some cases, such as for secondary homes or vacant properties. This updated guide clearly explains what the housing tax is, how it works, and in which situations you may be exempt.

What is the housing tax?

Until 2023, the housing tax was a local tax owed by the occupant of a property, whether tenant, owner, or someone living there rent-free. Since January 1, 2023, this tax has been abolished for all primary residences.

In 2025, it applies only to secondary residences, furnished but unrented properties, or certain vacant homes depending on their location.

For example, in a temporary furnished rental with no occupant on January 1st, the owner is responsible for paying the tax.

How is the tax calculated?

The tax is based on the cadastral rental value of the property. This estimated value reflects the theoretical annual rent the property could generate on the open market. It also includes features like garages or gardens. This base is re-evaluated each year.

Then, local authorities (municipality, intercommunality) apply a locally voted rate. Therefore, the rate may vary from one area to another.

Here are the main factors that influence the amount of the tax:

• The location of the property
• Its size, comfort, and amenities
• Its use (primary or secondary residence)

Who still has to pay the tax in 2025?

In 2025, you are liable for the housing tax in the following cases:

• You own a secondary residence
• Your property is furnished but unoccupied as of January 1st
• Your property is in an area subject to the vacant housing tax (TLV)

Possible exemptions and reductions

Exemptions are rare. However, certain profiles may qualify. For example:

• In particular, people over 60 years old, widows, or individuals with disabilities may receive a reduction, even for a secondary residence, subject to income conditions.
• Students living in a CROUS university residence or renting a room in a private home may be exempt, provided the property is not considered a secondary residence.

That said, automatic exemptions have become rare. Generally, primary residences are no longer affected by this tax.

Key takeaways

• Since 2023, the primary residence is exempt. Therefore, if you live there year-round, you won’t have to pay this tax.
• In summary, the tax still applies to secondary residences and certain vacant homes.
• It is calculated based on the cadastral rental value.
• If in doubt, contact your local tax office.

Do you rent out a furnished property or own a second home? Lodgis can help you with your tax and administrative formalities.

Follow the essential steps to rent out your property effectively.