Business Land Tax (CFE) France 2026: Calculation, Exemptions & Payment

The Cotisation Fonciere des Entreprises (CFE) is one of the least well understood local business taxes by entrepreneurs. Yet every December, thousands of directors discover their CFE notice — sometimes with surprise — on their professional tax account at impots.gouv.fr.

Successor to the taxe professionnelle abolished in 2010, the CFE is owed by any natural or legal person habitually carrying out a non-salaried professional activity. It is calculated on the rental value of real estate used by the business, and its amount varies significantly depending on the municipality where the business is established.

This comprehensive guide explains how CFE works in 2026, how to calculate it, what exemptions exist, and how to optimize its payment.

Origin and Nature of the Tax

The Cotisation Fonciere des Entreprises replaced the taxe professionnelle (TP) on 1 January 2010, as part of the reform of local taxation. Together with the Cotisation sur la Valeur Ajoutee des Entreprises (CVAE), it constitutes the Contribution Economique Territoriale (CET).

CFE is a local tax: rates are voted each year by municipalities and EPCIs (public bodies for inter-municipal cooperation). This is why CFE can vary considerably from one city to another for the same activity.

What is the CFE Used For?

CFE revenues finance local authorities (municipalities, inter-municipal structures). The law caps the combined CFE and CVAE at 1.531% of value added produced by the business — an important fiscal shield for high-value-added companies.

The General Principle

CFE is owed by any natural or legal person who habitually carries out a non-salaried professional activity in France, regardless of their legal status:

• Companies (SARL, SAS, SA, SASU, EURL...);
• Sole traders (EI, EIRL);
• Liberal professionals (doctors, lawyers, accountants...);
• Associations carrying out a profit-making activity;
• Micro-entrepreneurs (except exemption in the year of creation).

Permanently Exempt Activities

Certain activities are permanently exempt from CFE:

• Farmers: agricultural activities under agricultural profit (BA) are exempt;
• Fishermen: artisan fishermen operating a single boat;
• Craftsmen: under certain conditions (predominantly manual work, few employees, limited equipment);
• Non-furnished residential lettings (private individuals): exempt as non-professional activity.

The Cadastral Rental Value

The CFE tax base is the cadastral rental value of real estate that the taxpayer used for their activity on 1 January of the tax year. This value is determined by the tax authorities.

Included in the tax base:

• Professional premises (offices, warehouses, shops, workshops);
• Land used for professional activity;
• Boats used for sedentary activities.

Note: Equipment and movable assets are no longer taken into account since the abolition of the taxe professionnelle. Only real estate counts.

The Minimum Contribution

An important feature of CFE: businesses whose tax base is very low (or zero — particularly home-based workers with no dedicated premises) must pay a minimum contribution, set by the municipality based on the business's turnover.

The national scale for the minimum contribution (CGI art. 1647 D) is as follows:

Each municipality sets its amount within this range. Amounts therefore vary considerably: a rural municipality may apply the legal minimum of 237 €, while a major city such as Paris may reach the authorized maximums.

Calculation Formula

CFE = Tax base × Municipal rate

If the tax base is lower than the minimum contribution, the minimum contribution applies.

Standard Schedule

Mandatory Online Payment

Since 2019, CFE payment is obligatorily dematerialized for all businesses. It is made via the professional tax account on impots.gouv.fr.

Bank transfer (virement fiscal) or TIPSEPA payment are the accepted methods.

Year of Creation Exemption

Newly created businesses benefit from a total CFE exemption in the year of their creation. They are therefore liable from the second year of activity.

For micro-entrepreneurs, this exemption applies for the calendar year of creation. Note: micro-entrepreneurs with zero turnover may benefit from an additional exemption under certain conditions.

Geographic Zone Exemptions

Sectoral Exemptions

• Innovative young companies (JEI): optional exemption subject to municipal vote;
• Craftsmen predominantly using manual labor, with few or no employees;
• Artisan fishing activities;
• Non-professional furnished lettings (LMNP): exempt if letting does not constitute the main activity.

One of the most important mechanisms for high-value-added companies is the CFE rebate linked to the CET cap.

The CET (CFE + CVAE) cannot exceed 1.531% of value added produced by the business. If it does, the business can claim a CFE rebate.

The application is made via form no. 1327-CET to be filed before 31 December of the year following that for which the CET is due.

Note: CVAE is being progressively phased out (0% rate since 2024 for fiscal years beginning on or after 1 January 2024). The CET cap therefore gradually reduces to CFE alone.

If you believe your CFE is overstated (rental value too high, underused premises, activity carried out from home without a dedicated office space...), you can:

1. File a claim with the Business Tax Office (SIE) on which you depend, before 31 December of the year following the assessment;
2. Attach supporting documents (lease, cadastral certificate, floor plan, evidence of home-based activity);
3. Request a reduction in rental value if premises are only partially used.

For remote workers and activities carried out exclusively at home (without a dedicated space separate from the dwelling), the assessment base is zero and only the minimum contribution applies.

• CFE is owed by any person carrying out a non-salaried professional activity in France;
• The base is the cadastral rental value of professional premises on 1 January;
• A minimum contribution applies based on turnover, even without premises (home-based workers);
• Businesses created in 2026 are fully exempt for the year of creation;
• A 50% installment is due before 15 June if prior year CFE exceeds 3,000 €;
• CFE + CVAE are capped at 1.531% of value added produced.

(Sources: impots.gouv.fr CFE, BOFiP CFE scope of application, Service-Public.fr, Legifrance CGI art. 1447 to 1479)