IFI 2026: are you affected, and how to file?
The Impôt sur la Fortune Immobilière (IFI — wealth tax on real estate) applies to taxpayers whose net taxable real estate assets exceed €1.3 million as at 1 January 2026. Less publicised than income tax, it is also less well understood — and valuation or tax base errors can be costly in both directions.
Who is affected?
You are liable for IFI if you are tax-resident in France and the net value of your real estate assets (held directly or indirectly) exceeds €1,300,000 as at 1 January 2026.
If you are tax-resident outside France, you remain liable in France only on real estate located in France (subject to applicable bilateral tax treaties).
An IFI household different from the income tax household
The IFI tax household does not always coincide with the income tax household. You must include your cohabiting partner's assets — but not those of your adult children, even if they are attached to your income tax return. An attached adult child forms their own IFI household.
What is included in the tax base?
IFI applies to all real estate assets and rights held directly or indirectly by the tax household:
- Primary residence (with a 30% allowance on its market value)
- Secondary residences, rental properties
- Buildings under construction as at 1 January 2026
- Building plots, agricultural land
- Company shares (SCI, SCPI, etc.) proportional to their real estate fraction
Exempt assets
Real estate assets used in your main professional activity, carried on as a sole trader or through a company in which you exercise your activity as your principal occupation, are entirely exempt.
Partial exemptions also apply to woodland (75%) and rural properties let under long-term farming leases (75% up to €101,897 in value, 50% above).
Deductible liabilities
The taxable estate is a net estate: you may deduct liabilities existing as at 1 January 2026 relating to taxable assets:
- Mortgage loans (outstanding capital)
- Improvement, construction, or reconstruction expenditure financed by borrowing
- Property tax (taxe foncière) due on taxable assets
Note: when the value of taxable assets exceeds €5 million and liabilities exceed 60% of that value, the fraction of liabilities exceeding this threshold is only deductible up to 50%.
The IFI 2026 progressive scale
IFI is calculated on a bracket basis applied to the overall net taxable estate (2026 DGFiP Income Tax Guide, p. 338):
| Bracket | Rate |
|---|---|
| Up to €800,000 | 0% |
| Between €800,000 and €1,300,000 | 0.50% |
| Between €1,300,000 and €2,570,000 | 0.70% |
| Between €2,570,000 and €5,000,000 | 1.00% |
| Between €5,000,000 and €10,000,000 | 1.25% |
| Above €10,000,000 | 1.50% |
A taper relief applies for estates between €1,300,000 and €1,400,000: amount = €17,500 – (1.25% × net taxable estate).
The plafonnement cap
IFI is reduced if the combined total of IFI and income tax exceeds 75% of your net income for the previous year. This capping mechanism, inherited from the former ISF wealth tax, limits the overall tax burden for taxpayers with modest income relative to their assets.
Tax reduction for charitable donations
A tax reduction of 75% of payments is granted for donations to eligible public-interest organisations, up to a cap of €50,000. The payments concerned are those made between the filing deadline for the 2024 income tax return and that for the 2025 income tax return.
Filing IFI: a dedicated form
IFI is not filed on the standard form 2042. It requires a specific form, form 2042-IFI, accompanied by annexes detailing assets and liabilities. You must also tick box ØIF on your main income tax return to indicate that you are filing a 2042-IFI.
IFI is payable by 15 September 2026.
A return that demands rigour
Correctly valuing SCI shares, calculating the taxable fraction of SCPI units, applying the primary residence allowance, deducting the right liabilities in the right proportions: IFI is technically demanding, and every item of assets and liabilities must be justifiable.
Fidencia.tax guides you through building your IFI tax base and completing form 2042-IFI and its annexes — without the risk of omitting a taxable asset or deducting a non-permitted liability.
File your IFI without errors — fidencia.tax
This article is provided for informational and educational purposes only. It does not constitute tax, legal, or financial advice. The rules presented are general in nature and may not apply to your personal situation. Consult a qualified professional (chartered accountant, tax lawyer, wealth management adviser) for any tax decision. Fidencia.tax is a filing assistance tool and does not replace professional advice.
Legal references: CGI articles 964 et seq.; 2026 DGFiP Income Tax Guide pp. 337–338 (scale, tax base, capping); BOI-PAT-IFI.