2026 Council Tax surcharge: Renting out a room long-term to offset your costs

In the face of the intensifying housing crisis, French tax legislation is toughening significantly for owners of unoccupied or underused properties. With the 2026 council tax surcharge coming into force, keeping a secondary residence empty for a large part of the year or having a vacant property is becoming a real financial drain. At Roomlala, we know just how heavily these new charges can weigh on your family budget or your property's profitability.

Fortunately, there are legal, community-focused, and highly advantageous solutions to counter this tax pressure. Renting out part of your home on a long-term basis, whether via a student lease or a mobility lease, allows you not only to avoid these penalties but also to generate tax-free income. In this article, we break down the new 2026 legal framework for you and explain how renting a homestay room can turn your taxes into guaranteed income.

Read also: CIN regulations in Italy: Why long-term room rentals are appealing to hosts in late 2026, 2027 Finance Bill and furnished rentals: What hosts need to know this autumn and 2026 Housing Law: What changes for room rentals in Spain

Understanding the 2026 council tax surcharge and tax pressure

The year 2026 marks a decisive turning point in French local taxation. Following Decree no. 2025-1267 of 22 December 2025, more than 3,600 municipalities are now classified as 'tense zones'. This classification is not just a simple administrative label: it allows these municipalities to apply a massive surcharge on secondary residences. This surcharge on council tax for secondary residences (THRS) can now reach up to 60%, depending on the votes of municipal councils. For an owner, the year-end bill can therefore soar by several hundred, or even thousands, of euros.

But that is not all. The legislature has also decided to tackle totally unoccupied housing head-on. The 2026 Finance Act enacted the merger of the tax on vacant homes (TLV) and the council tax on vacant homes (THLV). From 1 January 2027, these two taxes will merge into a single tax (the TVLH), the rates of which will be revised upwards again. The government's objective is clear: to force unused square metres back onto the market to house students and workers.

Please note, a crucial point of vigilance is required here: many owners think they can offset these taxes by engaging in short-term seasonal rentals (such as Airbnb). This is a strategic error. Short-term tourist rentals do not change the tax status of your property. Since the accommodation does not constitute the primary residence of your transient tenants, you remain liable for the council tax surcharge and the tax on vacant homes. To free yourself from these charges, the only way out is to turn to long-term renting.

Making a secondary residence or vacant property profitable with long-term rentals

To cancel out liability for the THRS or the TLV, the golden rule is simple: your property, or a significant part of it, must become a tenant's primary residence. At Roomlala, we support you in setting up contracts that are perfectly adapted to this objective without locking you into 3-year terms as a standard unfurnished lease would.

The student lease: a win-win solution

The student lease is a furnished rental contract with a duration reduced to 9 months, corresponding exactly to the academic year. It is the perfect tool for making a secondary residence profitable if you wish to reclaim it in the summer for your own holidays. By renting your property to a student from September to May, you provide them with a roof in a context of housing shortages, while legally qualifying your property as the 'tenant's primary residence' during this period.

This requalification is magical from a tax point of view: it automatically exempts you from the surcharge on secondary residences. Furthermore, students are generally supported by solid guarantors (parents) or the State's Visale guarantee. This is a very reassuring tenant profile. Let's take the example of Martine, who owns an apartment in Montpellier (a city in a tense zone). By opting for a 9-month student lease, she saved 850 euros in council tax surcharges while receiving regular rent, before enjoying her property in July and August.

The mobility lease: flexibility and tax advantages

If the 9-month duration does not suit you, the mobility lease is an extremely flexible alternative. Created for people in situations of professional mobility (interns, apprentices, temporary workers, people in training), this furnished rental contract can last from 1 to 10 months and is non-renewable. Just like the student lease, it confers the status of primary residence on the temporary tenant, thus protecting you from the wrath of the 2026 tax surcharge.

The great advantage of the mobility lease lies in its flexibility. You can perfectly well rent a room in your main house or your secondary residence for a period of 3 months to an engineer on assignment, then for 5 months to a temporary nurse. Although it prohibits asking the tenant for a security deposit, this lease is systematically eligible for the Visale guarantee, which covers unpaid rent and potential damage. It is an excellent way to make your property profitable at your own pace.

Renting a homestay room: taxation and exemptions in 2026

In addition to avoiding local surcharges, renting out part of your own primary residence offers an exceptional tax niche. If you have one or more unoccupied rooms in your home (the 'empty nest' syndrome after the children have left, for example), the legislation strongly encourages you to rent them out.

Extended income tax exemption

In accordance with Article 35 bis of the General Tax Code, income derived from renting a furnished room within your primary residence benefits from a total income tax exemption. Faced with the housing crisis, the government has wisely extended this highly incentivising measure until 31 December 2026. This means that the rent received will not increase your taxable base, a considerable net advantage compared to a classic rental investment.

However, we draw your attention to strict points of vigilance to benefit from this exemption. Firstly, the rented room must be an integral part of your primary residence. Separate outbuildings with independent access (such as a converted studio at the bottom of the garden or a converted garage) are excluded from this provision and fall under the standard LMNP (Non-Professional Furnished Rental) taxation. Secondly, the room must meet decency standards, which implies a minimum surface area of 9 square metres and a window looking out onto the exterior.

Rent caps to respect in 2026

For this total tax exemption to apply, the legislature requires that the rent requested remains 'reasonable'. The tax authorities set annual rent caps per year excluding charges that must not be exceeded. For the year 2026, these caps have been re-evaluated to take inflation into account.

• In the Île-de-France region: the cap is set at 215 euros per square metre per year.
• In other regions (Provinces): the cap is 159 euros per square metre per year.

Let's take a concrete use case to fully understand. If you live in Lyon (Province) and rent a furnished room of 15 m2 within your apartment, the annual rent excluding charges must not exceed 2,385 euros (15 x 159), or approximately 198 euros per month. If you respect this cap, this income will be 100% net of tax. If you decide to charge more, which is perfectly legal, you will simply lose the total exemption and your income will switch to the classic micro-BIC regime, which remains advantageous thanks to its 50% fixed deduction.

How Roomlala supports you in this legal transition

Navigating through tax reforms, tax surcharges, and different types of leases can seem daunting. At Roomlala, our mission is to simplify all these steps to allow you to welcome tenants with complete peace of mind. We provide you with a secure platform designed specifically for homestay rentals and medium to long-term leases.

When you post a listing on our site, you gain access to a community of thousands of students and young professionals whose profiles are verified. We provide you with contract templates that are up to date with the latest 2026 regulations, whether for a student lease, a mobility lease, or an intergenerational cohabitation contract. You don't have to be a legal expert: everything is thought out to secure your process from A to Z.

Furthermore, our secure online payment system guarantees that you will receive your rent on time, without having to manage reminders. Faced with the 2026 council tax surcharge, do not let your empty rooms become a financial burden. Join the thousands of Roomlala hosts who have already made the choice of long-term rental: you will offset your charges, increase your purchasing power, and have an enriching human experience by helping someone to find housing.