Property tax exemption: income cannot be exceeded

The news was published on 07/02/2026 at 15:55. – Editorial staff of DemarchesAdministratives.fr

Find out about the new income caps to take advantage of the 2026 property tax exemption or cap.

Good news for some owners: income limits qualifying for property tax exemption or limitation have been overestimated. As a direct consequence, more households will benefit from a reduction or even elimination of property taxes this year. Here are the details about the new thresholds and the conditions that must be met to benefit from them.

Why do income limits increase every year?

There are no income thresholds that determine the tax benefits associated with the property tax. They are revised annually by the tax administration, usually in accordance with changes in consumer prices. This automatic reassessment prevents a simple adjustment to income, such as an increase in pension or salary, from causing the owner to lose a benefit to which they were entitled in the previous year.

For 2026, these ceilings have been raised, as confirmed by the Official Gazette of Government Finance (BOFiP), updated on 30 June 2026. This increase mechanically benefits more households, particularly low-income pensioners and people with disabilities, who are the main beneficiaries of these measures.

New thresholds for full property tax exemption

Some owners may be completely exempt from property taxes in their primary residence. depending on age, status or disability conditions, in addition to income conditions. This is especially true for people over 75, recipients of the Aging Solidarity Allowance (ASPA) or Supplementary Allowance for Disability (ASI), and recipients of the Disabled Adults Allowance (AAH) under certain conditions.

To take advantage of this benefit in 2026, your 2025 tax base must not exceed:

• €12,793 for part of the family coefficient;
• Increase by €3,416 for an additional half share

Thus, a couple without dependent children (i.e. two shares) has a ceiling of €19,625.

Maintaining certain exceptions thanks to a certain ceiling

The second threshold, slightly higher, allows remain eligible for certain benefits even if income exceeds the previous ceiling. This mechanism applies in particular to people who were already exempt from paying tax in the previous year and whose income has increased slightly, thereby avoiding too strict a threshold effect.

This ceiling is set for 2026 at:

• €16,209 for one part;
• increased by €3,416 for an additional half share.

Property tax cap based on income

Except in cases of complete release, there is a cap system that limits the amount of property tax to a share of household income, for owners occupying their primary residence and not exceeding a certain level of resources. This mechanism prevents the frugal owner from spending a disproportionate share of his income on this tax.

The basic tax revenue ceiling for 2026 is set at:

• €30,083 for the first part;
• + 7,029 € for the first additional half of the promotion;
• + 5 533 € for each subsequent half of the share.

Thus, this system is aimed at a wider audience than the previous two exceptions, since it does not require age or disability, but only the availability of resources and occupancy of the premises as the main residence.