No, the capital is not always the most expensive city… at least, not when it comes to property taxes. To everyone’s surprise, another municipality breaks all records.
We often tend to think that Paris is the “most expensive city”. It must be said that from rent to a simple drink on the terrace, including food shopping or even public transport, prices are reaching new heights in the capital. And yet, despite the exorbitant cost of real estate, the City of Lights is far from being the first in the ranking when we talk about property tax: it is positioned surprisingly low in the list, alongside other towns in Île-de-France which are also renowned for their high prices in 2024.
Yes, against all expectations, Paris was even one of the least taxed cities in France last year. While the payment has just been closed for taxpayers, the National Union of Real Estate Owners (UNPI) has published the 2024 figures. Thus, with a rate of 21.19%, Paris comes third in the list of the 50 most populous cities, where the property tax is the lowest, behind its neighbors Boulogne-Billancourt (15.78%) and Asnières (20.19%). For comparison, the average rate in France is around 40%. But then, which municipality has the most expensive property tax in the country?
To everyone’s surprise, it is the city of Grenoble which breaks all the records. With a rate of no less than 68%, the capital of Isère is undoubtedly the city in which it is not a good idea to invest in real estate! Moreover, it is also one of the municipalities where property tax has increased the most over the last ten years, with an increase of 54% between 2014 and 2024. On average, property tax increased by 37% throughout France during this period. And this is where Paris officially regains its position as the most expensive city: it is clear that the capital is well and truly in the lead when it comes to price increases. The property tax there has increased by 88% in a decade, which places it far ahead of Strasbourg, Limoges, Annecy and even Grenoble, which therefore constitute the top 5 cities where the property tax has increased the most in ten years.
A real paradox, where Paris combines a low rate, but a spectacular rise, making the tax pressure just as real for owners. This discrepancy is explained by the rapid evolution of rental values which, without modifying the rate itself, causes the rating to rise in the long term.
