Local Rates 2025

Local Rates 2025

6th Sept 2025

A study published this week reveals that local rates bills will rise less sharply in 2025 than in previous years.

With municipal elections on the horizon, local authorities across the country have opted for fiscal restraint, according to a comprehensive annual study by the financial consultancy Finances et Stratégies locales (FSL) and official figures from French tax office (DGFiP).

In a move that reflects both political caution and budgetary prudence, all of France’s largest towns and cities — those with populations exceeding 100,000 — have chosen to freeze their local property rates for 2025.

The two main local rates are the taxe foncière and the taxe d’habitation sur les résidences secondaires. The former is paid by all property owners, whilst the latter only by second-home owners, who pay both taxes. The bills are sent out each autumn for payment in one lump sum or by monthly direct debit. The bill varies by the type, size, location and characteristics of the property, but average annual rates bills for the taxe foncière are upwards of €1,000.

The standstill decision marks a significant shift from previous years, when several major municipalities raised rates.

The FSL study notes that such fiscal restraint is a recurring pattern ahead of local elections, with similar trends observed in 2019 and 2013. The next local elections are in March 2026.

The current political and economic climate has further reinforced this cautious approach. The late-2024 political crisis delayed the adoption of the 2025 national budget, leaving many local councils uncertain about their financial outlook.

Additionally, new financial burdens have forced local authorities to balance tight budgets with the need to maintain public services and investment capacity.

Smaller Councils

While large councils have uniformly maintained their tax rates, the situation is more varied in smaller municipalities.

Among towns with populations between 40,000 and 100,000, only two — Créteil and La Roche-sur-Yon — have increased their property tax rates, by 1% and 7% respectively.

Conversely, eight mid-sized towns, including Cannes, Carcassonne, and Castres, have reduced their rates, offering residents a rare reprieve.

The most notable increases, however, are concentrated in France’s smallest communities.

In villages with fewer than 500 inhabitants, 13.2% have raised their tax rates, while in those with populations between 500 and 3,500, the figure rises to 14.4%.

Official DGFiP data underscores the widespread trend toward stability: 86.3% of French municipalities have kept their taxe foncière rates unchanged for 2025, up from 82.1% in 2024. Only 1.1% have opted for a reduction, while 12.6% have implemented increases — mostly in smaller towns.

This disparity suggests that electoral pressures and financial constraints weigh differently depending on the size and resources of the municipality.

Annual Revaluation

For most homeowners, any increase in their 2025 property tax bill will stem not from local rate hikes, but from the annual revaluation of rental values used to calculate the tax.

The revaluation is inflation linked, and is determined by the central government.

This year, the national adjustment stands at 1.7%, a significant drop from the 3.9% increase in 2024 and the 7.1% surge in 2023.

While the current fiscal pause is welcome news for homeowners, experts warn that it may be temporary. With state funding to local governments continuing to decline, a post-election “catch-up” effect could see tax rates rise after the 2026 municipal elections.

Related Reading:

• Guide to Local Property Taxes

• Local Rates by Commune 2024