France Enacts 2026 Finance Law: Key Tax Measures Published in Journal Officiel
PARIS, 21 February 2026 – The French government has officially promulgated the 2026 Finance Law (Loi de finances pour 2026), following its publication in the Journal Officiel on Friday, 20 February 2026. The enactment marks the conclusion of a contentious legislative period characterised by the use of constitutional powers to bypass parliamentary deadlocks and a final validation by the Constitutional Council.
Constitutional Approval and Promulgation
The 2026 Budget, officially designated as Loi n° 2026-103, was signed into law on 19 February 2026, after the Constitutional Council (Conseil constitutionnel) cleared the majority of its provisions. The Council’s decision (n° 2026-901 DC) dismissed several appeals from opposition parties, paving the way for the law’s immediate entry into force. The legislative journey was notably difficult, involving the use of Article 49.3 of the Constitution and the survival of multiple motions of censure in the National Assembly earlier this month.
The primary objective of this year’s budget is to address the national deficit, with the Court of Auditors (Cour des comptes) emphasizing the “crucial” necessity for France to reduce its deficit to 5% of GDP by the end of the 2026 fiscal year. However, auditors have warned that the target remains “highly uncertain” given the reliance on tax increases over spending cuts.
Key Fiscal Measures for 2026
The 2026 Finance Law introduces significant changes for both corporate entities and private individuals. A central pillar of the legislation is the introduction of a “wealth tax” mechanism and a temporary surtax on high-revenue corporations. Companies generating annual revenue of at least €1 billion will face an additional tax burden, including a new 20% levy on certain profits to bolster public finances.
For individuals, the law adjusts the income tax brackets for 2026 and introduces reforms to the “LMNP” (Non-professional furnished renter) status, aimed at rebalancing the French rental market in favour of long-term leases. Additionally, the law modernises the “BSPCE” (Bons de souscription de parts de créateur d’entreprise) scheme to better support scale-ups and start-ups within the French ecosystem.
Summary of the 2026 Finance Law
| Category | Details & Statutory Reference |
|---|---|
| Official Law Number | Loi n° 2026-103 du 19 février 2026 |
| Publication Date | 20 February 2026 (Journal Officiel) |
| Corporate Tax Hike | New 20% tax for companies with revenue > €1 billion |
| Deficit Target | 5% of GDP by year-end 2026 |
| VAT Reform | Transfer of VAT rules to Consolidated Tax Code (effective 1 Sept 2026) |
Frequently Asked Questions
When does the 2026 Finance Law take effect?
The law was promulgated on 19 February 2026 and published in the Journal Officiel on 20 February 2026. Most tax provisions apply retroactively to income earned from 1 January 2026, or as specifically scheduled within the text of the law.
What are the main changes for businesses?
Large corporations with annual turnovers exceeding €1 billion are subject to exceptional contributions. Furthermore, the law initiates a transition of Value Added Tax (VAT) provisions from the General Tax Code (CGI) to a new Consolidated Tax Code, a process set to be finalised by September 2026.
How does the budget impact individual taxpayers?
The law includes measures targeting high-net-worth individuals and modifies the tax advantages for furnished holiday rentals (LMNP). It also adapts the tax scale for 2026 income to account for inflation and fiscal objectives.