Retirees can benefit from a reduction or exemption from property tax in 2026. The income conditions to benefit from this tax advantage have been broadened.
With one in 4 inhabitants retired, France is one of the countries in Europe with the most retirees on its territory. Retirees who, the vast majority of them, are owners. Of the 17.3 million French retirees, around 73% own at least one property according to data from the Department of Research, Studies, Evaluation and Statistics (DREES).
While holding a property title confers many advantages, notably financial security, it also obliges the owner to pay local taxes every year, the first of which is the property tax. Moreover, within a few weeks, the tax administration will send all owners their property tax notice. This document indicates the total amount of local tax to be paid in 2026.
The problem is that owners’ bills have continued to rise for several years. After an increase of 7.1% in 2023, an increase of 3.9% in 2024, followed by an increase of 1.7% in 2025, the property tax will increase by another 0.8% this year. Result: the average amount of property tax increased to 1,117 euros in 2025 and should settle at around 1,125 euros in 2026.
However, retirees have an advantage over other owners. Several schemes allow them to considerably reduce the amount of their property tax, or even obtain a total exemption. The conditions for access to these tax advantages were widened in 2026, allowing a greater number of retirees to benefit from them.
To benefit from a reduction or exemption from property tax, retirees must meet certain income conditions. Their resources must not exceed thresholds set by law. The tax administration published an update of these ceilings on June 30 in the Official Bulletin of Public Finances (BOFIP). They were revalued by 0.9%.
Thus, in 2026, a retired owner living alone must declare a reference tax income (RFR) of less than 12,793 euros to be eligible. For a retired couple, this threshold is set at 19,626 euros. Each additional half-tax share increases the ceiling by 3,416 euros. As a reminder, the RFR taken into account corresponds to the income received by retirees during the year 2025.
The extent of the tax advantage granted to retirees meeting these income conditions depends on their age on January 1, 2026. People aged 65 to 75 can benefit from a reduction of 100 euros on the amount of their property tax. People over 75 years old obtain a total exemption from this local tax. In short, they will not have to pay anything. For married or civil partnership couples subject to joint taxation, it is enough for only one of the two spouses to reach the required age for the couple to benefit from the corresponding tax advantage.
Certain categories of retirees automatically benefit from a property tax exemption, without age or income conditions. Beneficiaries of the solidarity allowance for the elderly (ASPA) or the supplementary disability allowance (ASI) are exempt from paying this local tax.
