What are the possible exemptions and reductions for France’s taxe foncière?

The first notices for France’s main annual property tax, taxe foncière, will begin arriving this month for some homeowners. 

The tax is paid by the owner of any property or land in France on January 1 of each year. 

However, there are a number of reductions and exemptions for the tax, depending on both the circumstances of the owner and of the property itself.

Below, we look at the major exemptions. 

Age, income, and benefit exemptions

The main exemptions are for elderly people and disability benefit recipients.

A total exemption is given to people aged 75 or above, if their revenu fiscal de référence (RFR, annual household income) is below certain ‘modest’ levels.

This information is shown on income tax notices, and the information from the previous year (i.e, for 2025 the information shown on the 2024 notice) is used to calculate eligibility.

The threshold changes annually. The maximum threshold increases proportionally depending on the number of ‘parts’ in the household. 

Similarly, those who receive the French pension top-up benefit Aspa, the Allocation d’adultes handicapés (AAH) or who are recipients of the Allocation supplémentaire d’invalidité (Asi) are also exempt if their income is below a certain threshold.

This is the case if they are the sole-owner of the home, everyone in the home receives the same benefits, or all other members of the household are dependents of the owner.

Homeowners eligible for these exemptions should have them applied automatically by the tax authorities.

However if you believe you should have received a discount and have not you should contact your local tax office (see the ‘Contacts et RDV’ section of your personal space on the French tax site).

People aged 65 - 74 on January 1 who would be eligible for the 75+ discount based on their ‘modest’ income can receive a €100 reduction from their tax bill.

Exemption for major renovations, expansions, etc 

Changing the use of a property (i.e from a commercial property to residential, or building a house on an empty plot of land) results in changes to the amount of taxe foncière that needs to be paid. 

Additionally, major improvements, renovations and extensions will often see the amount of the tax rise as the overall value of the property increases. 

However, a two-year exemption is in place from such increased amounts being added to your taxe foncière bill. 

It requires the changes to be declared within 90 days of completion (which itself is a legal requirement) and should be applied automatically. 

Note that it does not exclude you from paying the taxe d’aménagement or ‘garden shed’ tax associated with many property improvements. 

This two-year exemption also applies to newly-built homes, if the request is made before the first year that the tax is eligible.

Energy saving measures 

Local authorities can decide to reduce or completely exempt certain properties from taxe foncière if they have undergone certain eco-friendly renovations. 

The exemptions run from 50% to 100% and usually apply to properties built before 1989.

Check with local authorities before or during the works to see if you are set to be exempt, as this does not apply in all areas. 

New-builds that are certified as being extremely energy-efficient may also receive partial or full-exemptions for the first five years (as opposed to the general two years). This also applies to office space converted into residential property/ies.

Beneficiaries will need to contact the tax office to receive the exemption before the first year they are eligible to pay the tax.