Council tax on second homes in a nutshell
Since 2023, no household pays council tax on its main residence. The tax survives, however, as the council tax on second homes and other furnished premises not used as a main residence, often shortened to THRS.
According to Service-Public, it is payable by anyone who has the use or enjoyment of a furnished home that is not their main residence, whether as owner, tenant or rent-free occupant. The position is assessed on 1 January of the tax year: if the home is at your disposal on that date, you owe the tax for the whole year, even if you sell in March.
The amount is calculated from the property's cadastral rental value, to which the rates voted by local authorities apply. The tax notice is made available in the last quarter of the year in your personal account on impots.gouv.fr.
THRS, property tax and CFE: three taxes not to confuse
Many Nice owners receive several notices in the autumn and mix them up. Each follows its own logic, and it helps to tell them apart before discussing holiday lets.
- Property tax on built property (taxe foncière): payable by the owner on 1 January, whether the home is occupied, let or empty. In Nice, the municipal rate fell by 4.4 points in 2026.
- Council tax on second homes (THRS): payable by whoever has the furnished home at their disposal on 1 January, where it is not their main residence. This is the tax the city surcharges by 60%.
- Business property contribution (CFE): payable on a business activity, which includes furnished letting, treated as commercial by the tax office. Its notice is not posted but placed in your professional account on impots.gouv.fr.
So the same flat can generate property tax and, depending on how it is used, THRS, CFE or both. The rest of this guide explains how the way you use the property determines the combination, and why a single week of family holiday can change the bill. If you hold the property through a company or in joint ownership, the rules on who is liable may differ: ask a notary or accountant to confirm your position.
The 60% surcharge voted by the City of Nice
Municipalities in high-pressure housing areas (zone tendue), where supply does not meet demand, may add a surcharge to the municipal share of the tax due on second homes. The legal range runs from 5% to 60%, by decision of the municipal council. Nice is in a high-pressure area.
The city made its choice in 2018: at the February 2018 council meeting it set the surcharge at 60%, the legal maximum, according to local press reports of the decision. The surcharge has applied ever since, and the city kept it in 2026.
To picture the effect, take a hypothetical example: if the municipal share of your bill, before surcharge, is €1,000, the 60% surcharge adds €600. On an upmarket flat in the Carré d'Or or on Mont Boron, with a high cadastral rental value, the gap quickly becomes significant.
The stated aim of this kind of surcharge is to encourage owners to put second homes back on the long-term rental market. In Nice it comes on top of very strict rules on letting second homes to tourists.
What changes in 2026: a rate cut voted in April
On 24 April 2026, Nice municipal council voted a 3.3-point cut in the rate of council tax on second homes, together with a 4.4-point cut in the municipal rate of property tax on built property and a reduction in the household waste collection tax. According to the local press, the 60% surcharge is however maintained.
In practice, the THRS notice you receive at the end of 2026 should therefore be calculated at a lower rate than in 2025, but still surcharged. The final amount also depends on the annual uprating of rental values, set nationally. Compare your 2026 notice with the 2025 one line by line: the rates column lets you check that the cut has been applied.
The rates are shown on the notice itself. If you are unsure about the calculation, contact the Nice personal tax office through the secure messaging in your personal account.
Holiday let on Airbnb: THRS, CFE or both?
This is the key question for an investor. The answer turns on one test: do you keep the use of the property for part of the year?
You keep the property for yourself at certain times
You let on Airbnb, but you stay there for a few weeks, or keep the flat at your disposal between bookings. Tax guidance is clear: an owner who lets a furnished home for several months of the year while keeping it at their disposal the rest of the time owes council tax for the year, including the let periods. The DGFiP's FAQ on furnished lettings confirms it: the tax is due if you keep the use of the property for part of the year.
In that case the surcharged THRS applies. And because furnished letting is a commercial activity, CFE may be added, unless an exemption applies (receipts of €5,000 a year or less, or the year the activity starts).
The property is dedicated exclusively to holiday letting
If the holiday let is not your personal home and is entirely devoted to letting, the official guidance states that it is not liable for council tax, but falls under CFE. This is the typical case of a studio bought to be let to visitors all year round, with no private use.
In Nice, this set-up requires a change-of-use authorisation: since 1 September 2026 it is temporary (5 years maximum, non-renewable), limited to one per owner or tax household, and capped in the quota zones. Letting a second home short-term without authorisation exposes you to a fine of up to €100,000 per property.
The tax office looks at the actual position on 1 January. Blocking a few weeks of the calendar for family use is enough to place you under the second-home regime. Your occupancy declaration must reflect reality.
The occupancy declaration in 'Gérer mes biens immobiliers'
Since 2023, all owners must tell the tax office how their homes are occupied, through the 'Gérer mes biens immobiliers' (GMBI) service in their impots.gouv.fr account. This declaration determines who owes THRS, and whether the property is a main residence, a second home or let.
Today, a new declaration is only required when something changes: buying a property, switching from a year-round let to holiday letting, the end of a tenancy, a change of tenant. According to Service-Public, it must be made before 1 July, and failing to declare, or declaring incorrectly, can lead to a €150 fine per property.
- You turn your former main residence into a holiday let: update the declaration
- You switch from Airbnb to a mobility lease: the flat is occupied by a tenant, so report it
- You buy a pied-à-terre in Nice: declare its occupancy before the following 1 July
Possible exemptions and relief
The surcharge does not hit everyone automatically. Service-Public provides that relief from the surcharge can be requested in three situations:
- You must live in a home near your workplace, separate from your household's main residence
- You live long-term in a care facility or retirement home, and your former main residence has become a second home
- You cannot live in the property for reasons beyond your control
In addition, a person admitted to a care home (Ehpad), retirement home or long-term care facility is exempt from THRS on their former main residence from the year after admission, subject to conditions. These measures must be requested from the tax office: they are not applied automatically. For a specific situation, contact your tax office or an adviser.
What impact on the profitability of an Airbnb in Nice?
For a second home let short-term, the surcharged THRS is a fixed cost, due whether the flat is let for 30 nights or 200. It comes on top of property tax, service charges and, where applicable, CFE. That is one reason why local taxation must be part of any yield calculation in Nice, just like the management commission or cleaning.
A few habits to keep it under control:
- Use the actual amount from your latest THRS notice in your forecast, not an estimate
- Weigh personal use against exclusive letting: a few weeks of private stays have a tax cost
- Compare with a year-round let or a mobility lease, where the flat is occupied by a tenant
- Under the real regime, ask your accountant what can be deducted for the activity
Our rental strategy comparison tool helps you set short-term, mobility lease and standard letting side by side. For income tax, see our guide to declaring your Airbnb income.
Main residence let for 120 days: the most favourable case
If you live in Nice and let your main residence while you are away, THRS does not arise: council tax has been abolished for main residences, and letting for a few weeks does not change the nature of the home. In Nice, this letting is allowed without authorisation up to 120 days a year.
As for CFE, letting your own home as a holiday let is in principle exempt, unless the local authority has decided otherwise. Your receipts remain subject to income tax as BIC, however. This combination of advantages explains why many Nice residents choose this option: less local tax, no change-of-use authorisation, and extra income during the busiest periods, from the February Carnival to summer.
To make those weeks truly profitable, our Airbnb concierge service in Nice handles the listing, guests, cleaning and linen for a commission of 20% excl. VAT (24% incl. VAT) of income, with no lock-in. You receive a detailed report every Friday.
