French Council Tax (Taxe d’Habitation) for Americans in France: What Still Applies
France abolished the taxe d’habitation on primary residences as of January 1, 2023. If you are an American living in France and your French property is your main home, you no longer owe this tax. However, the taxe d’habitation remains fully in effect for second homes, vacation properties, and furnished properties that are not your primary residence. For Americans who own a second home in France while living elsewhere, this tax still applies and can be significant, especially in high-demand areas where local surcharges of up to 60% are added.
The taxe d’habitation is a local property tax assessed on the occupant (not the owner) of a furnished, habitable property as of January 1 of each year. It is separate from the taxe fonciere (land tax), which is paid by the property owner regardless of occupancy. For a broader overview of all French property taxes, see our French property tax guide for expats.
For Americans in France, the key question is whether the taxe d’habitation affects your U.S. tax return. In most cases, it does not, because the IRS treats it as a property tax, not an income tax. Here’s who still pays, how it’s calculated, and how it interacts with your U.S. filing.
Living in France as a U.S. Citizen?
Who Still Pays the Taxe d’Habitation?
| Situation | Taxe d’Habitation Due? |
|---|---|
| Primary residence in France (you live there full-time) | No (abolished since Jan 1, 2023) |
| Second home in France (vacation property, you live elsewhere) | Yes |
| Property in France while your primary residence is in another country | Yes (treated as a second home by default) |
| Long-term rental property (tenant occupies as their primary residence) | No (the tenant is liable, and since it’s their primary residence, it’s abolished for them) |
| Short-term rental / Airbnb property | Depends; the owner may be liable unless paying CFE (business tax) |
| Vacant, unfurnished property | No taxe d’habitation, but may be subject to taxe sur les logements vacants (TLV) in certain areas |
| Employer-provided housing (you live in France on assignment) | No (it’s your primary residence, so abolished) |
| Student housing (primary residence for 9+ months) | No (abolished for primary residences) |
The most important change for American expats: If you moved to France and it is your primary residence, you no longer pay the taxe d’habitation. The original version of this tax applied to all occupants. The 2023 abolition removed it for all primary residences, regardless of income, nationality, or property value.
How Does the Taxe d’Habitation on Second Homes Work?
The tax is calculated based on the cadastral rental value (valeur locative cadastrale) of the property, which is the theoretical annual rent the property could achieve on the open market. Local councils (communes) set the tax rate, which varies significantly by location.
Surcharges in High-Demand Areas
Since 2023, thousands of communes in housing-shortage zones (zones tendues) have the authority to impose a surcharge of 5% to 60% on the taxe d’habitation for second homes. This surcharge is designed to discourage leaving properties empty in areas where housing is scarce.
Cities that commonly apply the surcharge include Paris, Lyon, Bordeaux, Marseille, Nice, Toulouse, Montpellier, and many coastal and mountain resort areas.
Example: You own a second home in Nice with a cadastral value that produces a base taxe d’habitation of EUR 1,500. If Nice applies a 40% surcharge, your total bill becomes EUR 2,100.
Payment and Deadlines
- Tax notices are issued in the autumn (typically November)
- Payment deadline is usually mid-to-late December
- You can set up monthly direct debit payments through your account on impots.gouv.fr
Declaration of Occupancy (Declaration d’Occupation)
Since 2023, all property owners in France must file a one-time online declaration of occupancy via impots.gouv.fr, indicating whether each property is a primary residence, a second home, a rental, or vacant. This declaration determines your taxe d’habitation liability. You only need to update it if your situation changes (for example, you move into the property full-time). A EUR 150 fine per property applies for failure to file.
Can I Claim the Taxe d’Habitation on My U.S. Tax Return?
In most cases, no. The IRS classifies the taxe d’habitation as a property tax, not an income tax, which means:
| U.S. Tax Treatment | Result |
|---|---|
| Foreign Tax Credit (Form 1116) | Not available. The FTC only applies to foreign income taxes. |
| Itemized deduction for foreign property tax | Not available. The Tax Cuts and Jobs Act (TCJA), made permanent by the OBBB, specifically excludes non-U.S. property taxes from the state and local tax (SALT) deduction. |
| Rental expense on Schedule E | Available only if you pay the taxe d’habitation as a rental property owner (for example, on a short-term rental property where you are liable rather than a tenant). In that case, it qualifies as a rental operating expense. |
Bottom line for most Americans in France: The taxe d’habitation on your second home is a cost of ownership. It does not reduce your U.S. tax bill in most situations.
What About the Taxe Fonciere?
The taxe fonciere (land tax) is a separate annual tax paid by the property owner, regardless of whether the property is occupied. It applies to both primary residences and second homes. Unlike the taxe d’habitation, the taxe fonciere was not abolished and continues to apply to all property owners.
The taxe foncière is also classified as a property tax for U.S. purposes and follows the same rules: it is not creditable on Form 1116 and is not deductible as a SALT itemized deduction for foreign property.
For the full breakdown of French property taxes (taxe fonciere, taxe d’habitation, capital gains, rental income, and IFI wealth tax), see our French property tax guide.
Other French Taxes That Do Affect Your U.S. Return
While the taxe d’habitation does not help your U.S. tax situation, France’s income-based taxes do qualify for the Foreign Tax Credit:
| French Tax | Creditable on U.S. Return? |
|---|---|
| Impot sur le revenu (income tax) | Yes |
| CSG (contribution sociale generalisee) | Partially (the portion treated as income tax) |
| CRDS (contribution pour le remboursement de la dette sociale) | Generally no (treated as social charge, not income tax) |
| Prelevements sociaux (social charges on investment income) | Depends on specific charge; some qualify |
| Taxe d’habitation | No |
| Taxe fonciere | No |
| Plus-value immobiliere (capital gains tax on property) | Yes |
France is a high-tax country, with combined marginal rates on employment income exceeding 45% at higher brackets. For most Americans in France, the FTC eliminates U.S. income tax entirely. For a full guide to filing in both countries, see our France country guide.
Frequently Asked Questions
For primary residences, yes, as of January 1, 2023. For second homes, vacation properties, and non-primary-residence properties, no. It remains fully in effect and may include surcharges of up to 60% in housing-shortage areas.
No, as long as the property is your primary residence and you’ve filed the declaration of occupancy on impots.gouv.fr classifying it as such.
Yes. If your primary residence is outside France, any property you own in France is treated as a second home and is subject to the taxe d’habitation.
Generally no. It is a property tax, not an income tax, and non-U.S. property taxes are excluded from both the FTC and the SALT itemized deduction under current law. The exception is if you pay it as a rental property expense on a short-term rental you operate.
A mandatory online filing through impots.gouv.fr where all French property owners declare how each property is used (primary residence, second home, rental, or vacant). This determines taxe d’habitation liability. You file it once and update only if your situation changes.
It varies significantly by commune and property. The tax is based on the cadastral rental value multiplied by local rates. In high-demand zones, a surcharge of 5% to 60% may be added. As a rough guide, second-home taxe d’habitation can range from a few hundred euros in rural areas to several thousand in Paris or the Côte d’Azur.
At Greenback, we help Americans in France coordinate their U.S. and French tax obligations, including determining which French taxes qualify for the Foreign Tax Credit, filing FBAR and FATCA for French accounts, and handling the interaction between French property taxes and your U.S. return.
If you’re ready to be matched with a Greenback accountant, click the get started button below. For general tax questions for Americans in France, contact our Customer Champions.
File Your U.S. Taxes From France With Confidence
This article is for informational purposes only and should not be considered tax advice. French tax rules change frequently, and local commune rates vary significantly. For the latest French tax guidance, visit impots.gouv.fr or service-public.fr. For U.S. tax guidance on foreign property taxes, see IRS Publication 514. Always consult with qualified tax professionals regarding your specific situation.
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