In 2026, France’s property development tax will see a decrease of approximately 4%. Learn about the implications for construction projects across the country.
France’s property development tax is set to take a significant turn in 2026, bringing some relief to property developers and homeowners. After years of substantial increases—7% in 2022 and 8% in 2023—the national scales for this local tax will decrease by approximately 4.06%. This adjustment follows annual trends driven primarily by the construction cost index, which has remained stable over the previous year.
The development tax, which applies to various construction and extension projects—including garden sheds and swimming pools—will see adjustments in reference values per square meter of surface area. Specifically, the rates will drop from €930 to €892 in the provinces and from €1,054 to €1,011 for the Île-de-France region.
This decrease, effective January 1, 2026, means that property developers can expect a potential reduction in their development tax liabilities. However, the overall amount payable will still depend on local rates set by municipalities. As a result, individuals engaging in construction or extension operations should stay updated on their local governing body’s decisions regarding tax rates.
In summary, while the new scale offers a welcomed relief after several inflationary years, developers must consider local variations in rates to fully understand the impact on their upcoming projects. This change in the property development tax reflects a broader trend of stabilization in the construction industry, giving hope for a more balanced economic environment in the years to come.
