Legal news

Finance Act for 2026: What Changes for Individuals

The Finance Act for 2026 was adopted on 19 February 2026: adjustment of the income tax scale, introduction of a tax on small parcels, and the “Relance logement” (housing recovery) programme.

Here are the main measures.

Taxes

Adjustment of the income tax scale

The Finance Act for 2026 adjusts the income tax scale in line with inflation (+0.9%) in order to neutralise its impact on households’ tax burden.

Retention of the 10% allowance on pensions

Article 6 of the draft Finance Bill for 2026 proposed abolishing the 10% allowance on pensions when calculating income tax and replacing it with a fixed allowance of €2,000. The adopted Finance Act for 2026 cancels this measure and maintains this tax benefit.

Extension of the differential tax on high incomes (CDHR)

The differential tax on high incomes, introduced in 2025, is extended by the Finance Act for 2026. This tax aims to ensure a minimum taxation rate of 20% for the wealthiest taxpayers until the public deficit falls below 3% of GDP.

The differential rate applies to households with taxable income in 2025 exceeding:

• €250,000 for a single person
• €500,000 for a couple

Introduction of a tax on holding companies with large assets

The Finance Act for 2026 introduces a tax on holding companies with large assets, with a narrower scope than originally proposed. Initially set at 2% of assets not linked to economic activity, the measure has been amended and now applies only to the market value of certain “luxury assets” not related to business activity, such as yachts, collector cars, racehorses, and jewellery.

The following assets are excluded from the tax base:

• Cash
• Financial instruments
• Active shareholdings
• Works of art

The tax rate is 20% for financial years ending on or after 31 December 2026. The tax applies to holding companies controlled by individuals with assets of at least €5 million.

Doubling of the deduction ceiling for the “Coluche” scheme

The Finance Act for 2026 promotes charitable giving by increasing the tax reduction for donations. The ceiling for donations to public-interest organisations is raised from €1,000 to €2,000 per year, while the 75% tax reduction is maintained.

This applies to donations made at the end of 2025 for the 2026 tax return.

Consumption

Introduction of a tax on small parcels

The Finance Act for 2026 introduces a so-called “small parcel tax” of €2 per item to address competition from e-commerce platforms.

It comes into force on 1 March 2026 and applies to parcels:

• Valued under €150
• Coming from countries outside the European Union

Housing

Introduction of the “Relance logement” programme

The Finance Act for 2026 introduces a new tax scheme for individuals aimed at stimulating the supply of rental housing. The programme runs for three years and covers apartments in multi-unit buildings across the country:

• New-build properties
• Existing properties, provided that renovation works amounting to at least 30% of the property’s value are carried out

To participate, landlords must commit to renting the property as a primary residence (excluding close family members) for nine years and comply with a rent cap.

In return, the landlord may deduct from rental income:

• A portion of the purchase price (up to €12,000 per year)
• All rental-related expenses (renovation works, loan interest, property tax) up to €10,700

Support and Funding

Increase in the activity bonus (prime d’activité)

The Finance Act increases the average activity bonus by €50 per month per recipient. The benefit supplements the income of low-paid workers and encourages taking up or continuing employment for people over 18. The amount is calculated based on household composition and income.

Reopening of MaPrimeRénov’

The absence of a budget vote at the end of 2025 led to the suspension of MaPrimeRénov’. The adoption of the Finance Act for 2026 allows the scheme to fully reopen for all households under the same conditions as in 2025.

A prior appointment at a France Rénov’ advice centre is mandatory before applying.

MaPrimeRénov’ is the main state aid scheme for the energy renovation of houses and apartment buildings.

The aid is available to:

• Owner-occupiers
• Landlords
• Usufruct holders
• Holders of a real right of use
• Co-owners, provided all co-owners sign a sworn statement designating the applicant as responsible for the works

The following are not eligible:

• Bare owners without usufruct rights
• Legal entities

It is also possible to apply during a property purchase process with a preliminary sales agreement. Proof of ownership must be provided to receive the grant.

Reopening of other support schemes

The adoption of the Finance Act for 2026 enables the gradual reopening of the following schemes, which had been closed since 1 January 2026:

• Ma Prime Logement Décent
• Ma PrimeAdapt’
• Loc’Avantages

Revision of social benefits

The Finance Act for 2026 adjusts social benefits in line with inflation (+0.9%) from 1 April 2026. This concerns:

• RSA — increased to €653.33 per month
• AAH — increased to €1,042.62 per month
• APL — amount depends on household circumstances
• Family allowances — amount varies depending on household situation

Driving licence financing

Financing of preparation for light vehicle driving licence categories (A1, A2, B1, B) via the Personal Training Account (CPF) is now limited to unemployed individuals or employed persons receiving third-party funding.

In addition, the apprenticeship grant previously intended to finance driving licences is abolished.

Med venlig hilsen / Kind regards
Cabinet Nicolas BRAHIN
Advokatfirma i NICE, Lawyers in NIC
Camilla Nissen MICHELIS
Assistante – Traductrice
1, Rue Louis Gassin – 06300 NICE (FRANCE)
Tel : +33 493 830 876 / Fax : +33 493 181 437
Camilla.nissen.michelis@brahin-avocats.com
www.brahin-avocats.com