Taxe d'habitation and Airbnb rentals: are you (finally) exempt?

Ah, Airbnb… That lovely way of making your Paris studio pay for itself while you're away on holiday, or of turning your country house into a nice little source of passive income. But once the tax office joins the party, one question comes up: do you have to pay the taxe d'habitation (the French residence tax) if you let your property on Airbnb?

Spoiler alert: it depends. And not just by a whisker.

Quick recap: what exactly is the taxe d'habitation?

Until 2023, the taxe d'habitation was a local tax payable by whoever was occupying a property on 1 January of that year. Since the reform, this tax has been abolished for main residences, but it still applies to second homes and to furnished properties not occupied as a main residence.

Yes, even if your cat lives there full time, that doesn't count.

Letting on Airbnb: does this affect you?

If you let your property on Airbnb or any other short-term rental platform, you fall into a slightly special category in the eyes of the tax office: operators of furnished tourist accommodation.

And that's where it gets tricky. Because the tax office does love a subtlety.

If you let your main residence occasionally

Good news: you don't owe any taxe d'habitation on that property, since it is your main residence and, as such, has been exempt since the reform.

One caveat: it has to genuinely be your main residence, meaning you live there for at least eight months a year. Otherwise, bang: the tax office treats you as the owner of a second home, and the tax comes knocking again.

If you let a second home

This is rather less fun: you do owe the taxe d'habitation, even if you never set foot in the property. Letting it on Airbnb does not cancel out this tax, quite the opposite.

And in certain cities (hello Paris, Lyon and Marseille), a surcharge may even be added to the bill as part of the drive against empty homes. Yes, you read that correctly: you can be taxed more heavily simply because you don't live there

A special case: officially classified furnished tourist accommodation

Have you had your property officially classified as furnished tourist accommodation? You may be eligible for a possible exemption from the taxe d'habitation, but only if the property is occupied neither by you nor by a year-round tenant.

In that case, it is treated as business premises. Careful though: you could then switch over to the CFE (the French business property tax).

A small tip: it can be worth getting in touch with your local tax office to clarify the status of your property. They're friendlier than people think (sometimes).

The key takeaways

Situation	Taxe d'habitation payable?
Main residence, let occasionally on Airbnb	No
Second home, let on Airbnb	Yes
Classified furnished tourist accommodation, unoccupied	No (conditions apply)
Property let on a year-round basis	No (the tenant pays)

In conclusion: Airbnb, yes, but read the small print

Letting on Airbnb is a great opportunity. But do watch out for the tax pitfalls. The taxe d'habitation is now nothing but a memory for main residences, yet it remains very much alive for second homes, even if you're only ever the digital host for a weekend.

So take the time to review your position with a tax adviser or directly with the tax office. It could save you a few nasty surprises… and a few sleepless nights.

If you'd like to learn more about this complex business of tax declarations, take a look at our article on: The standards that apply to holiday rentals

 

Frequently asked questions

I rent my flat on Airbnb while I’m on holiday, do I owe the taxe d’habitation? No, as long as the property remains your main home. The reform removed the taxe d’habitation (the French residence tax) on main homes, and occasional letting on Airbnb does not change what the property is. This is the one situation that is genuinely simple.

How long must I live in the property for it to count as my main home? At least eight months a year. Below that, the tax authorities treat the property as a second home, and the residence tax comes back with it. That threshold decides most cases.

My second home is rented out on Airbnb, am I exempt? No. The residence tax still applies to second homes, even if you never set foot there and even if the property is let for a large part of the year. Cities such as Paris, Lyon and Marseille also apply a surcharge aimed at empty housing.

Does classification as a meublé de tourisme remove the residence tax? An exemption is possible, but only if you do not occupy the property yourself and no tenant lives there year round. The property is then treated as business premises. There is a flip side: you may move into the scope of the CFE, the French local business tax.

Who pays the residence tax when the property is let year round? The tenant, not the owner. This falls outside short term rental logic: the property is occupied by someone else, and that occupier is the one concerned.

Who should I ask to confirm my own situation? Your local tax office, which can clarify the exact status of your property, or a tax adviser. These cases often turn on one detail of occupancy, and a confirmation beats an assumption.