Property tax by city: the 2026 ranking to decide whether to buy or rent

Property tax by city in 2026: why the ranking matters for the buy or rent decision

Between 2020 and 2025, local property taxes increased sharply in many major European and French cities, often by more than 20%, and in some cases by over 50%. In 2026, property tax has become a key factor in any serious buy or rent calculation. Two similar apartments, bought at the same price but in different cities, can generate more than €1,000 difference in annual property tax.

In a simulator like buy-or-rent.net or acheter-ou-louer.com, this cost is captured by the parameter taxe_fonciere_annuelle (annual property tax). Understanding how property tax by city behaves in 2026 is essential if you want to compare buying and renting with real numbers instead of intuition.

How is property tax by city calculated?

The exact formula varies by country, but in most European systems the annual property tax bill depends on two main elements:

• A notional rental value assigned by the tax administration, based on size, location, quality and type of property.
• Local tax rates voted by the city, region or county, which can differ drastically from one city to another.

Simplified formula:

Annual property tax ≈ Notional rental value × Global local rate

In practice, for a 60 m² apartment in 2026, you often see:

• In a large, high-tax city: €1,400 to €1,800 / year
• In a medium-size city: €800 to €1,200 / year
• In a small town or peri-urban area: €450 to €800 / year

This €1,000 gap per year, over 20–25 years, can be equivalent to several years of rent or to a sizable part of your closing costs. That is why property tax by city must be a core element of any buy or rent analysis.

2026 property tax profiles: typical city categories

Exact rankings change every year, but you can usually group cities into several broad categories based on property tax levels in 2026.

1. High-tax cities (often > €1,500 / year for 60–70 m²)

Typical profile:

• Large metropolitan areas or cities > 100,000 inhabitants
• Significant public investment and budget pressure
• Strong property tax increases between 2021 and 2025, with further rises in 2026

Numerical example:

• 65 m² apartment bought for €320,000
• Property tax 2026: €1,700 / year
• Annual revaluation: +3% / year (this is the “property tax increase” parameter in the simulator)

Over 10 years:

• Year 1: €1,700
• Year 10 (after 3% / year) ≈ €2,215
• Total over 10 years ≈ €19,800

Those almost €20,000 need to be compared with the cost of renting, but also with what your money could earn if invested in financial assets (ETFs, index funds, savings accounts) instead of being tied up in a home purchase.

2. Medium-tax cities (€800–1,200 / year for 60–70 m²)

Typical profile:

• Medium-size cities or outer suburbs of major metro areas
• Moderate tax rates, but regular annual increases
• Lower purchase prices per m² than in top-tier cities

Numerical example:

• 70 m² apartment bought for €230,000
• Property tax 2026: €1,000 / year
• Annual revaluation: +2% / year

Over 20 years:

• Year 1: €1,000
• Year 20 ≈ €1,486
• Total over 20 years ≈ €24,300

In a buy or rent comparison, these €24,300 sit on top of mortgage interest (loan rate around 3.6% in 2026), borrower insurance (0.25–0.45%), notary or closing fees (7–8% on older properties, 2–3% on new builds), and maintenance.

3. Low-tax cities (< €800 / year for 60–70 m²)

Typical profile:

• Small towns, rural areas or peri-urban communities
• Historically low tax rates or broad tax base (many owners, business parks)
• Sometimes more moderate increases, but always dependent on local politics

Numerical example:

• 80 m² house bought for €200,000
• Property tax 2026: €600 / year
• Annual revaluation: +1.5% / year

Over 25 years:

• Year 1: €600
• Year 25 ≈ €834
• Total over 25 years ≈ €17,500

Here, property tax is a smaller share of total ownership costs compared with maintenance, renovations and insurance. Buying in such areas can be fiscally attractive, but you must also consider rental market depth, resale prospects, and your own life plans.

Integrating property tax into the buy or rent calculation

The buy or rent question is not simply about comparing the mortgage payment with the monthly rent. In 2026, with rising property tax by city, you need a comprehensive framework.

Key simulator parameter: taxe_fonciere_annuelle

On buy-or-rent.net or acheter-ou-louer.com, you can enter your estimated taxe_fonciere_annuelle (annual property tax). Three practical tips:

• Start from real data: use the actual 2026 bill (or a robust estimate) for the specific property you are targeting, for example €1,200 / year.
• Add a realistic growth rate: simulate a 2–4% yearly increase, in line with recent trends and inflation.
• Choose a realistic horizon: over 15, 20 or 25 years, compounding has a major impact.

The simulator will then compare this cost with the evolution of your rent if you stay a tenant, using the annual rent increase parameter (often linked to an inflation or rental index).

Detailed example: buy or rent in a high-tax city in 2026

Buying scenario:

• Purchase price: €350,000
• Notary/closing costs (older property, ~7.5%): €26,250
• Agency fees: 4% or €14,000 (either included in price or on top)
• Down payment: €50,000
• Loan amount: €300,000
• Loan rate: 3.6% over 25 years
• Borrower insurance: 0.30% / year of initial principal
• Property tax 2026: €1,800 / year, +3% / year (taxe_fonciere_annuelle)

Renting scenario:

• Initial monthly rent for a similar unit: €1,450
• Annual rent increase: 2% (linked to a rental index)
• Down payment of €50,000 invested at 4% / year (investment rate) in a diversified ETF portfolio

Over 10 years in this high-tax city:

• Owner: pays mortgage instalments, insurance, and cumulative property tax of about €19,800, plus building charges and maintenance.
• Tenant: pays rent rising from €1,450 to roughly €1,767 over 10 years, but no property tax and no notary fees; the invested €50,000 could grow to around €74,000 at 4% / year.

Whether buying or renting is preferable will depend on future resale price, rent dynamics, property tax by city, and your personal financial goals. There is no universal answer.

How to use a 2026 property tax ranking in practice

Step 1: identify the tax band of your target city

For a standard property (60–70 m² apartment or 80–100 m² house), identify:

• City A (metropolis): €1,500–2,000 / year
• City B (mid-size): €900–1,200 / year
• City C (small town): €500–800 / year

This simple classification lets you quickly position your target city within the 2026 property tax ranking.

Step 2: project property tax over 20–25 years

Assume a reasonable 2026–2046 scenario:

• Annual inflation: 2.0–2.5%
• Annual property tax increase: 2.5–3.5% depending on the city

City A (high tax, €1,800 / year, +3.5%) over 20 years:

• Year 1: €1,800
• Year 20 ≈ €3,510
• Total ≈ €49,800

City B (medium tax, €1,000 / year, +3%) over 20 years:

• Total ≈ €26,900

City C (low tax, €600 / year, +2.5%) over 20 years:

• Total ≈ €15,600

The gap between City A and City C over 20 years is more than €34,000. That amount can represent:

• Roughly 10 years of €280 / month rent, or
• A substantial extra down payment for a later purchase.

Step 3: compare this with rent inflation

If you keep renting, you pay no property tax, but your rent usually rises with inflation or a rental index.

Example for City A:

• Initial rent: €1,500 / month
• Annual rent increase: 2%
• Total rent paid over 20 years ≈ €442,000

The owner in the same city will pay:

• Mortgage principal and interest
• Property tax ≈ €49,800
• Notary/closing costs, insurance, maintenance, and possibly renovation

But the owner ends up with an asset which might be worth more (or less) depending on real estate price trends. Comparing these paths requires a full cash-flow and net-worth analysis, which a simulator can provide.

Other simulator parameters you should not ignore

Property tax by city is crucial, but it is only one part of the picture in a buy or rent analysis.

• Loan rate (~3.6% in 2026): drives the interest cost over time. A 0.5 percentage point change can mean tens of thousands of euros.
• Borrower insurance (0.25–0.45%): often overlooked, but it significantly raises the effective cost of borrowing.
• Notary / closing fees: 7–8% in older properties, 2–3% in new builds. They are paid upfront and have no equivalent cost for tenants.
• Renovation costs: especially energy-efficiency upgrades (DPE, insulation, heating systems). These can affect both your bills and, in some jurisdictions, the tax base.
• Annual inflation: erodes the real value of your mortgage payments, rent, and property tax, but also influences investment returns.
• Investment rate: what you could earn by investing your savings instead of using them as a down payment (e.g., 3–5% / year in diversified ETFs).
• Prepayment penalties: if you sell and repay early, penalties can reach up to 3% of the remaining principal or 6 months of interest.

A robust simulator like buy-or-rent.net or acheter-ou-louer.com lets you combine all these parameters, including taxe_fonciere_annuelle, into one coherent projection over 10, 15, 20 or 25 years.

Using the 2026 property tax ranking before buying

1. Compare several cities or neighborhoods

If you are hesitating between two cities:

• City A: estimated property tax €1,800 / year
• City B: estimated property tax €900 / year

For a 20-year horizon with 3% annual tax growth in both:

• City A: ≈ €48,000 total property tax
• City B: ≈ €24,000 total property tax
• Difference: about €24,000

You then need to check whether:

• Purchase prices differ significantly between cities
• Rents are much higher in one city than the other
• Long-term price appreciation is expected to be stronger in one market

The best option will depend on all of these elements together, not on tax alone.

2. Adjust your maximum housing budget

High property tax eats into your monthly housing budget:

• If you can afford €2,000 / month for housing and property tax is €2,400 / year (€200 / month), you have €1,800 / month left for your mortgage, insurance and building fees.
• If property tax is only €720 / year (€60 / month), your borrowing capacity is higher for the same global budget.

In a buy or rent decision, it is therefore useful to simulate several cities with different tax levels and see how your borrowing capacity and long-term net worth change.

3. Anticipate resale and market perception

Very high property tax can, over time, reduce the attractiveness of some neighborhoods and weigh on prices. Conversely, a city with moderate taxation and strong public services can remain attractive and support property values. There is no guaranteed rule, but property tax by city should clearly be part of your location filter before buying.

Conclusion: property tax by city is a central pillar of the 2026 buy or rent equation

In 2026, wide differences in property tax by city make it impossible to answer the buy or rent question with simple rules of thumb. Between a town at €500 / year and a metropolis above €2,000 / year, the cumulative 20-year gap may exceed €30,000.

To make a sound decision, you need to:

• Know roughly where your target city ranks in terms of property tax
• Enter a realistic taxe_fonciere_annuelle and tax growth rate into a simulator
• Compare this cost with projected rents and potential investment returns on your savings

This article provides general figures and scenarios, but it is not personalized financial advice. Your income, savings, time horizon, risk tolerance and life plans all matter greatly.

To quantify your own 2026 buy or rent scenario, taking into account property tax by city, mortgage rates, inflation and investment alternatives, use a dedicated tool: Simulate your situation on buy-or-rent.net (or acheter-ou-louer.com).