New Property Tax Hits 3 Million Homes with Higher Rates
The government will merge two existing local levies on vacant homes into a single tax. The change takes effect on January 1, 2027, under the 2026 finance law.
What the reform does
The taxe sur les logements vacants and the taxe d’habitation sur les logements vacants will combine. The new levy is called taxe sur la vacance des locaux d’habitation, or TVLH.
Under the reform, revenues from the TVLH will go directly to communes. The tax will apply to all vacant dwellings nationwide.
Who will be affected
The TVLH covers properties in both tense and non-tense markets. Current rules split treatment between “zone tendue” and other communes.
About 3.1 million homes meet the INSEE definition of vacant. Many of these units are for sale, for rent, or awaiting renovation.
Existing rules that will change
Today, the TLV hits homes in zone tendue after one year of vacancy. The state collects that tax at 17% the first year and 34% thereafter.
Outside tense areas, the THLV applies after two years of vacancy. Municipal councils choose whether to apply it. The THLV rate follows the local tax on secondary residences.
New rates and local powers
In areas already classified as zone tendue, the TVLH will match the TLV baseline: 17% for year one and 34% for subsequent years. Communes may raise rates beyond those baselines.
Municipalities outside tense zones will set the TVLH by vote, with a legal ceiling of 50% of the property’s rental value.
Majorations and an example
- Communes can set higher maxima of up to 30% for the first year.
- They can set up to 60% from the second year onward in some cases.
For a property with a cadastral rental value of €8,000, the baseline tax equals €1,360 in year one. The baseline rises to €2,720 in the second year.
With higher municipal rates, that same property could face up to €2,400 in year one and up to €4,800 in year two.
Local control and homeowner concerns
By giving communes the authority to choose or increase rates, the reform shifts power to local councils. Owners fear higher bills from 2027 onward.
Many property owners worry that the new property tax will hit 3 million homes with higher rates. Filmogaz.com will monitor municipal decisions closely.
Vacancy definition and context
A dwelling is generally considered vacant if it is unfurnished. It must also be occupied fewer than 90 consecutive days within the calendar year.
INSEE data show most vacant units are simply on the market or need work. The overall stock amounts to roughly 3.1 million dwellings.
