How Much Tax Does a Landlord Pay in France? Real Figures for Paris in 2026

Owning a rental property in Paris is far from straightforward when it comes to taxes. Unlike a single bill you can check off, landlords face multiple taxes calculated at the same time, including income tax, social charges, and the local taxe foncière. The amounts depend on the type of lease, the tax regime you choose, your residency status, and the expenses you can deduct.

Getting the structure right is essential. Ignore it and a property generating €18,000 a year could produce between €3,500 and €8,500 in combined income tax and social charges, depending entirely on regime and deductible expenses. Add taxe foncière, which increased 51.9% in 2023 and has stayed at 20.5% since, and the real cost of holding a Paris rental becomes significant.

This guide explains every layer of taxation for Paris landlords in 2026. It covers how income tax and social charges work for residents and non-residents, how micro and réel regimes change the calculation, what taxe foncière costs for Paris apartments today, and what the dispositif Jeanbrun from the Finance Law 2026 introduces for qualifying new acquisitions. By the end, you will have a clear framework to plan effectively, reduce risk, and optimize your net rental income.

Every Paris landlord owes at minimum two charges on rental income: income tax and social charges (prélèvements sociaux). They are calculated on the same taxable base and paid together through the annual tax return, but they are legally distinct mechanisms.

Income tax on rental income

Rental income is not taxed at a dedicated property rate in France. For French tax residents, it is added to the household's total taxable income and taxed at the applicable marginal rate (taux marginal d'imposition, or TMI). The 2026 income tax scale (loi de finances 2026, seuils revalorisés de +0,9% par rapport à 2025) runs as follows, per part of quotient familial:

• 0% up to €11,600
• 11% from €11,601 to €29,579
• 30% from €29,580 to €84,577
• 41% from €84,578 to €181,917
• 45% above €181,917

A landlord already earning a salary that places them in the 30% bracket pays 30% on every euro of net rental income added on top. There is no preferential rate and no separate property income category for residents. The effective tax rate on rental income tracks directly with total household income, not with the property itself.

One important precision: the TMI is the rate applied only to the fraction of income in that bracket. A landlord at the edge of the 30% tranche does not pay 30% on all of their rental income. But for most mid-to-upper earners in Paris, the rental income pushes cleanly into the 30% band, which is the relevant rate for the calculations below.

Social charges and what they add to the total

Social charges (prélèvements sociaux) apply at 17.2% on top of income tax, calculated on the same net taxable base. For a resident landlord in the 30% TMI band, the combined rate on net rental income is 47.2%. That combined figure is what matters for regime comparison: every euro of taxable base costs 47.2 cents in fiscal charges before any deduction.

Non-residents pay different social charge rates depending on nationality and health coverage status. EU and EEA residents holding a valid S1 health certificate pay 7.5% instead of 17.2%. UK nationals, under the post-Brexit arrangement confirmed by the French government (January 2021 circular), are treated similarly to EEA residents for French property income only and pay the 7.5% solidarity levy rather than the full 17.2%. American and other non-EU landlords pay 17.2%. On a taxable base of €15,000, the difference between 17.2% and 7.5% amounts to €1,455 per year. That is not a marginal distinction.

The two scenarios below use confirmed 2026 figures. They are realistic rather than theoretical, based on Paris-typical rental values and tax parameters in force for the 2026 tax year. Your actual liability depends on regime choice, property size, arrondissement, and deductible expenses.

Scenario A: Unfurnished rental, resident landlord, micro-foncier

• Property: 50m² apartment, 11th arrondissement
• Gross rental income: €18,000/year (€1,500/month)
• Micro-foncier flat allowance (30%): -€5,400
• Taxable base: €12,600
• Income tax at TMI 30%: €3,780
• Social charges at 17.2%: €2,167
• Total income tax + social charges: €5,947
• Taxe foncière (50m² apartment, Paris 11th, estimated 2026): approximately €1,100
• Approximate total annual fiscal charge: €7,047

Scenario B: Furnished rental, non-resident landlord (American national), micro-BIC

• Property: furnished 55m² apartment, 7th arrondissement
• Gross rental income: €30,000/year (€2,500/month)
• Micro-BIC flat allowance (50%): -€15,000
• Taxable base: €15,000
• Income tax at non-resident flat rate of 20% (income below €29,315 threshold): €3,000
• Social charges at 17.2% (non-EU rate): €2,580
• Total income tax + social charges: €5,580
• Taxe foncière (55m² apartment, Paris 7th, estimated 2026): approximately €2,200
• Approximate total annual fiscal charge: €7,780

What changes under régime réel in Scenario A: If the same landlord opted for régime réel with a €900/month mortgage and typical management fees of €1,620 (9% of €18,000), plus taxe foncière of €1,100 and insurance of €400, total deductible expenses would reach approximately €12,920. Net taxable income would fall to €5,080. Income tax at 30%: €1,524. Social charges at 17.2%: €874. Total income tax and social charges: €2,398, compared with €5,947 under micro-foncier. The flat allowance is simpler. It is not always cheaper.

The taxe foncière line in both scenarios is worth noting: it represents 15-25% of the total annual fiscal charge and is fully deductible under régime réel. Under micro regimes, the flat allowance is assumed to cover it.

The most important structural decision for a Paris landlord is whether the property is furnished or unfurnished. It determines the tax category, the available regimes, and the deduction logic entirely.

Micro-foncier and régime réel for unfurnished rentals

Unfurnished rental income is categorised as revenus fonciers. If annual gross income from all unfurnished rentals stays at or below €15,000, the micro-foncier regime applies automatically. The tax administration deducts a flat 30% allowance and taxes the remaining 70%. No expense receipts are needed, no charge breakdown required.

Once gross income exceeds €15,000, or if you choose to opt in voluntarily, the régime réel applies. You declare actual expenses: taxe foncière, property management fees, mortgage interest, insurance, co-ownership charges (charges de copropriété), and eligible repair costs. In Paris, these items accumulate quickly. Taxe foncière on a mid-sized apartment typically runs €1,200-€2,500 per year (see the taxe foncière section below for the 2026 calculation). Management fees at 8-10% of gross rent on €18,000 total €1,440-€1,800. For landlords carrying a mortgage, régime réel almost always wins on the math.

One deduction non-resident landlords regularly overlook: if expenses under régime réel exceed rental income, the resulting foncier deficit can be carried forward to offset rental income in future years. Up to €10,700 can also be offset against global income in a single year. The dispositif Jeanbrun (Finance Law 2026) raises this cap to €21,400 for qualifying energy renovation work on the property.

Micro-BIC and LMNP for furnished rentals

Furnished rental income falls under Bénéfices Industriels et Commerciaux (BIC), not revenus fonciers. The micro-BIC regime applies to gross furnished income up to €77,700 per year and provides a 50% flat allowance. That is a significantly more generous starting point than micro-foncier. The remaining 50% is taxed at the marginal rate.

An important distinction from January 2025: for meublés de tourisme non classés (unclassified short-term vacation rentals), the Loi Le Meur of November 2024 reduced the micro-BIC allowance to 30% and capped the threshold at €15,000. Long-term furnished rentals, which represent the standard arrangement for corporate, diplomatic, and expat tenancies in Paris, are unaffected and retain the 50% allowance.

Under régime réel as a Loueur Meublé Non Professionnel (LMNP), landlords can deduct actual expenses and also depreciate the property and its furniture by component over time. For a Paris apartment purchased at €600,000, the annual depreciation on the structure alone can offset a large portion of gross income, reducing the taxable base close to zero in the early years of ownership. Since 2025, depreciation amounts previously deducted are reintegrated into the capital gains calculation at the point of sale. That is a trade-off, not a trap, but it needs to be part of the long-term calculation.

For a full breakdown of how each regime operates in practice, see the rental income tax rules for furnished and unfurnished homes in Paris.

The taxe foncière is an annual local property tax paid by the owner, not the tenant. It applies whether the property is occupied, rented, vacant, or used as a secondary residence.

How the 2026 calculation works

Taxe foncière = (cadastral rental value × 50%) × communal rate

The City of Paris communal rate has been fixed at 20.5% since 2023, following the 51.9% increase that year (from 13.5% to 20.5%), as confirmed by the Paris city council budget (La Finance Pour Tous, 2025). The communal rate was not increased for 2025. For 2026, the national cadastral base revaluation coefficient is +0.8% (based on November 2025 inflation data, per the 2026 Finance Law).

The result in practice:

• 40-50m² apartment in Paris: taxe foncière of approximately €400-€1,200 per year
• 55-70m² apartment in a central arrondissement (1st-7th): approximately €1,500-€3,000 per year
• Outer arrondissements (18th, 19th, 20th): materially lower bills than the central districts due to lower cadastral reference values

The bill may also include the TEOM (taxe d'enlèvement des ordures ménagères, waste collection tax), calculated at approximately 15% of the cadastral rental value. This charge can be passed on to tenants by agreement.

Deductibility and regime interaction

Taxe foncière is fully deductible under régime réel for both unfurnished rentals (revenus fonciers) and furnished rentals under the LMNP framework. Under micro-foncier or micro-BIC, the flat allowance is understood to cover taxe foncière along with all other expenses. No separate deduction is available in the micro regimes.

Exemptions apply for new-build properties during the two years following completion of construction, subject to declaration within 90 days of completion (forms H1 or H2 to the relevant service des impôts fonciers). Specific income-based reductions may also apply for qualifying landlords.

Non-residents who own and rent out French property are taxed in France on that income regardless of where they live. The French state exercises territorial tax jurisdiction over all property located within its borders.

Flat rates and social charges for non-residents

Non-residents are subject to a minimum flat income tax rate of 20% on net rental income up to €29,315 (2025 income, to be confirmed for 2026 on impots.gouv.fr). Above that threshold, the rate becomes 30%. Both rates apply to net income after the flat allowance or actual deductions under the chosen regime.

The social charges distinction is significant and often misunderstood:

• American and other non-EU landlords: 17.2% social charges on the taxable base
• EU/EEA residents with S1 health certificate: 7.5% solidarity levy (Contribution Sociale de Solidarité)
• UK nationals: 7.5% on French property income only, under the post-Brexit arrangement

On a taxable base of €15,000, the annual difference between 17.2% and 7.5% is €1,455. For landlords holding several Paris properties, this difference scales accordingly.

Tax treaties and double taxation

France maintains double taxation agreements with the United States, the United Kingdom, and most EU member states. Under these agreements, tax paid in France on rental income is generally credited against the landlord's home-country liability. American landlords filing US returns use the Foreign Tax Credit to offset their French tax against US income tax on the same rental income, typically resulting in little or no additional US liability on that income. British landlords follow similar treaty logic, though the post-Brexit situation introduces complexity that benefits from professional review.

All non-resident landlords must file a French income tax return (déclaration de revenus des non-résidents) every year, regardless of income level. Late filing carries automatic penalties starting at 10% of tax owed. Expatriation is not a recognised reason for an exemption.

The Finance Law for 2026 (L. n° 2026-103, published in the Journal Officiel n° 0043 on 20 February 2026, effective from 21 February 2026) introduced the dispositif Jeanbrun, also known as the statut du bailleur privé. This scheme replaces the Pinel program, which ended on 31 December 2024. Unlike Pinel, Jeanbrun uses annual property depreciation instead of flat tax reductions, as detailed in the official Jeanbrun 2026 guide.

How the Depreciation Mechanism Works

Under Jeanbrun, landlords can deduct an annual amortisation allowance directly from unfurnished rental income (revenus fonciers). The deduction is capped depending on the rent level agreed:

• Loyer intermédiaire (about 15% below market rate): maximum €8,000/year
• Loyer social (about 30% below market rate): maximum €10,000/year
• Loyer très social (about 40% below market rate): maximum €12,000/year

Up to 80% of the acquisition price forms the amortisable base. If this creates a foncier deficit, up to €21,400 can be offset against total taxable income for qualifying energy renovation work. Otherwise, the standard cap is €10,700 per year.

What This Means for Paris Landlords

A Paris landlord acquiring a new-build apartment in the 15th arrondissement under a loyer intermédiaire arrangement can deduct up to €8,000 per year. With a 30% marginal tax rate and 17.2% social charges, this produces combined tax savings of approximately €3,776 annually, not counting other deductions under régime réel.

Conditions and Limitations

• Minimum rental commitment: 9 years at the capped rent.
• Breaking the commitment: Full repayment of all fiscal advantages plus interest.
• Eligible properties: Collective residential buildings; maisons individuelles are excluded.
• Rental requirements: Must be unfurnished and rented as the tenant’s primary residence.

Certain rentals are not eligible, such as furnished rentals, civil code leases, or corporate or diplomatic tenancies.

For landlords targeting executives, diplomats, or senior professionals at market rates, Jeanbrun is generally inapplicable. In such cases, the civil code lease and LMNP régime réel are more appropriate. Always check the full eligibility conditions on legifrance.gouv.fr before including Jeanbrun in an acquisition plan.

For landlords renting to corporate tenants, diplomats, or senior professionals, a civil code lease (bail code civil) offers superior tax efficiency compared with standard unfurnished leases. Classified as a furnished rental for French tax purposes, it generates BIC income under the LMNP framework, giving access to either:

• Micro-BIC: 50% flat allowance on income up to €77,700.
• Régime réel: full property depreciation, often more favourable than the 30% micro-foncier allowance for unfurnished rentals.

Unlike standard leases under the loi du 6 juillet 1989, civil code leases provide flexibility in duration, early exit clauses, and contractual terms, making them ideal for corporate or diplomatic assignments where tenancy length is externally dictated. Paris rent control (encadrement des loyers) still applies to leases signed from July 2019 onwards—a detail many landlords overlook.

Example: A corporate tenant paying €4,500/month (€54,000/year) for a furnished 3-bedroom in the 7th or 8th arrondissement, combined with régime réel LMNP depreciation on a €900,000 property, can reduce taxable rental income close to zero in the first decade. This is a standard structure for non-resident landlords holding premium Paris properties.

If you are structuring a Paris rental for diplomatic or corporate use, see the guide to Paris rent control rules and the overview of essential Paris home contracts to understand how the encadrement des loyers and lease type interact.

Managing a Paris rental remotely and staying compliant with French fiscal rules, rent control obligations, and DPE requirements requires active oversight that does not come automatically with property ownership.

Relocation in Paris manages short and medium-term furnished rentals in Paris, with particular depth on civil code lease arrangements for corporate and diplomatic tenants. The service covers tenant selection, lease drafting, compliance checks against the encadrement des loyers, ongoing charge management, and the annual income documentation that non-resident landlords need for their French tax return. For American and British landlords, especially, having clean, structured income records at year-end reduces the complexity of filing in both France and their home country.

Property management fees for a Paris rental typically run at 8-10% of gross annual rent. Those fees are fully deductible under régime réel, which changes the real cost of the service. A landlord in the 30% TMI band with 17.2% social charges effectively recovers 47.2% of the fee through the tax deduction. On a €54,000/year rental with a 9% management fee (€4,860), the after-tax cost of the service is approximately €2,566. That figure represents the actual cost of having professional management, not the headline number.