Overview

• President Emmanuel Macron has firmly rejected any reintroduction of the taxe d’habitation, abolished in 2023 to boost household purchasing power.
• Government officials, including Sophie Primas, emphasize that no decisions have been made regarding new local contributions for the 2026 budget.
• Prime Minister François Bayrou is set to present the government’s budget orientation in mid-July, which will address the €40 billion savings requirement.
• Proposals for modest local contributions have been floated, but Macron insists these must not constitute a return to the housing tax in any form.
• Consultations with local officials and associations continue as the government seeks to balance municipal funding needs with national fiscal discipline.