Vacant housing: Paris will raise the tax to 30% and then 60% from 2027

From January 1, 2027, owners of vacant properties in Paris will be taxed at a rate of 30% of the cadastral rental value after one year of vacancy and 60% from the second year onward. The Paris City Council adopted these rates on Saturday; they correspond to the maximum amounts authorized by the 2026 Finance Law.

Rates increased from 17% to 30% from the first year

La Finance law for 2026 creates, starting with taxes levied in 2027, a tax on vacant residential premises. In municipalities with a marked imbalance between housing supply and demand, its rate is set at 17% for the first year of taxation and at 34% from the second year onwards.

The municipalities concerned can, however, raise these rates up to 30% after one year of vacancy and 60% from the second year onwards. Paris has chosen to apply these caps from January 1, 2027.

The tax is calculated based on the cadastral rental value of the property. Properties whose vacancy is beyond the taxpayer's control, as well as properties occupied for more than 90 consecutive days during the reference period, are specifically excluded.

The City has identified 150.000 vacant dwellings in Paris.

According to the City of Paris, the capital has 150.000 vacant homes, representing 9% of its total housing stock. The municipality cites a "persistent imbalance between supply and demand."

Of these properties, "approximately 80.000 are structurally vacant" and would therefore be subject to the tax, estimates Jacques Baudrier, deputy mayor for housing under Paris Mayor Emmanuel Grégoire. The communist politician hopes that the rate increase will allow around 20.000 homes to be put back on the rental or sales market.

"A historic victory after 10 years of battle," Jacques Baudrier rejoiced after the vote.

According to the deputy mayor for housing, the measure should also "discourage some owners from engaging in tax optimization by declaring their second homes as vacant." He believes it should "halt the decline in the number of primary residences in Paris and thus reverse the population decline."

The opposition denounces a "tax onslaught"

The right-wing opposition disputes the figures put forward by the municipality regarding vacant housing and questions the effectiveness of the measure. For Grégory Canal, co-chair of the Paris Liberté group with Rachida Dati, raising the tax "will serve no purpose."

"You're setting the tax at the maximum rate when the legal average is 17%. That's not an incentive, that's fiscal harassment." the elected representative from The Republicans party stated.

The Paris Liberté group also points out that property tax increased by 52% in Paris under Anne Hidalgo's previous term.