The Taxe d’Habitation from 2023: Residual Scope
Following the full abolition of the taxe d’habitation on principal residences (Loi 2019-1479 du 28-12-2019 Art. 16), the tax now applies exclusively to (CGI Art. 1407):
- All furnished premises used for residential purposes (including their dependencies) that are not the taxpayer’s principal residence — principally secondary residences, holiday homes, pieds-à-terre, and similar;
- Furnished premises occupied by private organisations or companies that are not subject to the cotisation foncière des entreprises (CFE) — furnished offices, meeting rooms, and similar premises;
- Habitable vacant dwellings vacant for more than two years, in communes where the taxe sur les logements vacants (TLV) does not apply — subject to communal deliberation.
Premises are considered furnished when they contain sufficient furniture to permit effective residential occupation (CE 28-12-2012 n° 347252). The furniture need not be lavish — even sparse furnishing suffices (CE 10-5-2019 n° 411898). It is irrelevant whether the furniture belongs to the occupier or was provided by the owner (CE 26-11-1982 n° 30956). The test is whether the premises can be occupied for residential purposes as they stand. Dependencies — garages, parking within ~1 km, gardens, outhouses — are included; a separate assessment is raised where a dependency is at a different address.
Who Is Subject to the Tax (CGI Art. 1408)
The tax is assessed in the name of the person who has the disposal or enjoyment of the taxable premises as at 1 January of the tax year, whether as owner, tenant, or on any other basis. The test is not ownership but the right to occupy the premises at any time, even without actually occupying them. The occupation must be private and exclusive: premises open to the public are not caught.
- An owner-occupier of a secondary residence pays both the taxe foncière and the taxe d’habitation;
- Where a property is let bare (unfurnished), the tenant is subject to the taxe d’habitation (if the property is not their principal residence); the owner pays only the taxe foncière;
- For vacant dwellings >2 years (in non-TLV communes), the tax is assessed in the name of the owner, usufructuary, emphytéote, or holder of a bail à construction or réhabilitation;
- A timeshare attribution company is liable for premises attributed in enjoyment to its members;
- In an unoccupied succession indivision, the tax is assessed in the name of the indivision; each co-indivisaire’s liability is capped at their proportionate share (CE 30-9-2019 n° 419384).
Exemptions
Premises-Based Exemptions (CGI Art. 1407, II)
- Premises subject to the CFE where they do not form an integral part of the occupier’s personal residence;
- Rural agricultural buildings (in the same sense as for taxe foncière);
- Student accommodation in CROUS-managed university residences or equivalent.
Furnished tourist accommodation (meublés de tourisme) and chambres d’hôtes in zones de revitalisation rurale may also be exempt on communal deliberation.
Person-Based Exemptions (CGI Art. 1408, II and Art. 1414 B)
- Residents of EHPAD and small non-profit residential care units (annual declaration required);
- Persons recognised as indigent by the communal tax commission;
- Persons retaining enjoyment of their former principal residence while residing permanently in a care home or long-term care establishment (CGI Art. 1414 B): exemption from the year following admission. From 2023 (Loi 2022-1726 Art. 102): no longer conditional on the former residence remaining unoccupied.
The Tax Base and Calculation
The tax base is the full valeur locative cadastrale of the premises and dependencies (CGI Art. 1409) — the same base as for the taxe foncière, but without the 50% flat deduction that applies for TFPB purposes. The higher effective base reflects the fact that the taxe d’habitation is assessed on the occupier, not the owner, and includes no notional deduction for property costs.
The tax is calculated by multiplying the base by the rates voted annually by communes and their groupings. State management fees of 3% are added. The final notice also shows any surcharge for secondary residences and any applicable exemptions or reliefs.
The Secondary Residence Surcharge (CGI Art. 1407 ter)
In communes where the TLV applies, communal councils may vote an additional surcharge of 5% to 60% on the commune’s portion of the taxe d’habitation on furnished premises that are not the principal residence of the occupant. This surcharge targets secondary residences specifically and applies regardless of the identity of the owner — whether an individual, a private company, or a public body (Rép. Cherki: AN 24-1-2017 n° 94515).
- Persons required to reside away from their principal residence for professional reasons (e.g. employees posted to a location requiring a second residence);
- Persons residing permanently in a care home or long-term care establishment and benefiting from the Art. 1414 B exemption on their former principal residence;
- Persons who, for reasons outside their control, cannot use the dwelling as their principal residence: dwellings earmarked for rehabilitation or demolition within one year; dwellings offered for letting or sale at market price without finding a tenant or buyer (BOI-IF-TH-70 n° 250).
The relief is granted on a réclamation contentieuse filed by 31 December of the year following the year in which the tax roll is enforced. Requests based on inability to use the property as a principal residence are assessed case by case; a general assertion of market conditions does not suffice.
Assessment Rules
The taxe d’habitation is due in every commune where the taxpayer has disposal of taxable premises. It is assessed for the full year based on the situation as at 1 January of the tax year (CGI Art. 1415). Changes occurring during the year (moves, modifications) are irrelevant for that year’s tax. Where a taxpayer is assessed who had vacated the premises before 1 January, the assessment may be relieved (d’office or on claim), and the new occupant is then assessed up to the relieved amount.
The Annual Declaration Obligation (CGI Art. 1418)
From 2023, all property owners must declare the occupation status of all their residential premises annually (CGI Art. 1418).
Payment, Claims, and Audit
The taxe d’habitation is paid by the deadline shown on the tax notice, subject to a 10% surcharge for late payment. Electronic payment is required where the amount exceeds €300 (0.2% penalty otherwise). Monthly instalment payment (mensualisation) is available for the secondary residence tax but not for the vacant dwelling taxe d’habitation.
Owners or head tenants may be required to pay the taxe d’habitation of tenants or sub-tenants who have vacated the premises, but may discharge this liability by informing the public accountant of the tenant’s departure (CGI Art. 1686). Taxpayer claims must be filed by 31 December of the year following the enforcement of the tax roll. The administration may correct omissions or insufficient assessments by supplementary roll until 31 December of the following year (LPF Art. L173).
Our French law practice advises on secondary residence taxe d’habitation exposure, surcharge dégrèvement claims, the annual declaration obligation, care home exemption conditions, and the interaction with the taxe foncière and TLV for residential property owners in France.
Book a ConsultationLegal Notice. This article is provided for general information and educational purposes only. It does not constitute legal or tax advice. Local rates and surcharge percentages are voted annually and vary by commune. The annual online declaration under CGI Art. 1418 applies to all property owners from 2023. Always consult a qualified French tax adviser before any decision based on taxe d’habitation rules.
Key Legal References
Abolition of taxe d’habitation on principal residences: fully abolished from 2023; taxe d’habitation now applies only to furnished premises that are not the taxpayer’s principal residence
Taxable premises from 2023: furnished residential premises not used as principal residence; furnished premises of private companies not subject to CFE; habitable vacant dwellings over 2 years in non-TLV communes (on communal deliberation); rural agricultural buildings and CFE-liable premises exempt
Secondary residence surcharge: 5–60% on commune’s portion; only in TLV communes on deliberation; applies to all owner types including legal entities; dégrèvement for professional posting, care home residents with Art. 1414 B exemption, and persons unable to use dwelling as principal residence for reasons outside their control
Taxable persons: person having disposal or enjoyment of premises at 1 January of tax year (owner, tenant, free occupant); exemptions for indigent persons; test is right to occupy at any time, not actual occupation
Tax base: full valeur locative cadastrale without any flat deduction (contrast with 50% deduction for taxe foncière)
Care home residents exempt on former principal residence: exemption applies from year following admission; from 2023 no longer conditional on former residence remaining unoccupied
Care home exemption condition removed from 2023: no occupation condition on former principal residence for persons in care homes or long-term care establishments
Assessment: full year assessed at 1 January of tax year; changes during the year irrelevant; assessed in every commune where taxpayer has disposal of taxable premises
Annual declaration obligation: all property owners must declare occupation status of all residential premises online via Gérer mes biens immobiliers before 1 July each year; penalty €150 per premises for omission or inaccuracy; also serves TLV assessment and audit
Penalty for omission or inaccuracy in annual property occupation declaration: €150 per premises, recovered as taxe foncière
Owner or head tenant liability for absconded tenant’s taxe d’habitation; discharge by informing public accountant of tenant departure
Administration corrections by supplementary roll: until 31 December of the year following the year in which the tax roll is enforced
Furnished premises: sufficient furniture to permit effective residential occupation; sparse furnishing suffices
Sparse furnishing sufficient to constitute furnished premises for taxe d’habitation purposes
Whether furniture belongs to occupier or owner is irrelevant for furnished premises test
Indivision unoccupied: tax assessed in name of indivision; each co-indivisaire’s liability capped at their proportionate share
Legal entity secondary residence: surcharge applicable to furnished premises held by a legal entity that are not occupied as a principal residence
Surcharge dégrèvement for inability to use as principal residence: dwellings for demolition/rehabilitation within 1 year; dwellings offered for sale or letting at market price without finding a taker
