A sea serpent. The revaluation of rental values of housing, which serves as the basis for calculating the property tax, owed by all property owners, deserves this nickname more than ever. This update is postponed againaccording to the finance bill (PLF) for 2026 presented to the Council of Ministers this Tuesday, October 14, that Capital was able to consult.
As a reminder, the calculation of the property tax is based, in part, on the potential annual rent of the accommodation, reduced by a flat-rate reduction of 50%. The problem is that rental values date from… 1974. As a result, they do not take into account, for example, rents which have increased because certain neighborhoods have gentrified or because buildings have been renovated.
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A three-year postponement
The finance law for 2020, via its article 146, had finally provided for a review of rental values in 2026 but the 2023 budget postponed it to 2028. The finance bill for 2026 postpones this deadline again, by three years, to 2031. Its article 27 in fact modifies the wording of article 146 of the finance law for 2020, by providing that “the results of the revision of the rental values of residential premises are taken into account from the establishment of the bases (property tax notice) for the year 2031”and no longer the year 2028.
Concretely, in the event of adoption by Parliament of this article of the draft budget for 2026, if you live in a neighborhood that has become more and more chic over time, you risk seeingr your property tax will increase in 2031, instead of 2028. Conversely, if you live in a building built in the 1960s and which has deteriorated, the rental value of your home and, therefore, your property tax could be reduced from 2031, and no longer from 2028.
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Professional premises also affected
This revision of the rental values of housing is part of “consistently” with the revision of the rental values of professional premisesalso postponed by the PLF 2026. The latter, which began in 2017 and which was to be reflected in the 2026 property tax notices, is in fact postponed to 2027. The time for the government to “determine the best solution” to avoid “from next year too big variations in local taxes for taxpayers”variations which would result from “the expiration, in 2025, of mitigating mechanisms” of this updating of the rental values of professional premises.
