A landlord renting out a furnished studio for the year and another offering an apartment for short-term rental on a platform do not pay the same tax, even with identical revenues. The tax rate on furnished rental income depends on the chosen tax regime, the type of rental, and the marginal tax bracket of the household. Understanding these mechanisms allows for a decision between micro-BIC and the real regime before the next declaration.
Social contributions on furnished rents: the rate that many underestimate
Before even discussing income tax, one must consider social contributions. Since the last adjustment, the overall rate of social contributions has risen to 18.6%. This contribution applies to the taxable profit, that is, after the deduction in micro-BIC or after deducting expenses in the real regime.
Detailed information on these mechanisms can be found on the Immo Factory website for taxation, which summarizes the various applicable rates depending on the situations.
This rate of 18.6% is added to the progressive scale of income tax. A taxpayer in the 30% bracket thus faces a combined tax pressure of nearly 50% on their furnished rental profits. In the 11% bracket, the total burden approaches 30%, which remains significant for a small landlord.
Micro-BIC in furnished rental: deductions and caps for 2026
The micro-BIC regime remains the simplest to manage. The administration applies a flat-rate deduction on gross receipts, and one is taxed on the remainder. Since the 2025 income, the deduction rates are as follows:
- 50% deduction for long-term furnished rentals, classified tourist accommodations, and guest rooms
- 30% deduction for unclassified tourist accommodations, which significantly increases the tax burden on unclassified seasonal rentals
The revenue caps determine access to micro-BIC. For the 2026 income, the threshold is set at 83,600 euros for long-term rental, classified accommodations, and guest rooms. It drops to 15,000 euros for unclassified tourist accommodations.
What the deduction changes concretely
Let’s take a landlord who receives annual rents and is in the 30% bracket. With a 50% deduction, only half of their receipts are included in the income tax calculation. The social contributions at 18.6% apply to this same reduced base.
With a 30% deduction (unclassified tourist accommodation), 70% of the receipts are taxable. The difference between the two regimes can represent several thousand euros in tax per year, depending on the volume of rents. The classification of the tourist accommodation becomes a direct tax lever.
Real regime in LMNP: deducting expenses and amortizations
The simplified real regime allows for the deduction of actual expenses (loan interest, work, insurance, management fees, property tax) and especially for the amortization of the property and furniture. In practice, amortization reduces the taxable profit, sometimes bringing it down to zero for several years.
An LMNP under the real regime may pay no tax on their rents as long as the amortizations absorb the result. This mechanism explains why the real regime attracts owners whose expenses exceed the flat-rate deduction of micro-BIC.
Amortizations and resale: a hidden cost to anticipate
It is often forgotten that the amortizations practiced are reintegrated into the calculation of the capital gain upon the sale of the property, subject to exceptions for certain managed residences. The annual tax gain is partially paid at resale.
The capital gains regime for individuals grants deductions for the duration of ownership: exemption from income tax after 22 years, exemption from social contributions after 30 years. Therefore, the long-term holding strategy mitigates the impact of this reintegration, but it requires planning the exit from the acquisition.
Progressive scale of income tax applied to rental BICs
Furnished rental income, once filtered through the micro-BIC or real regime, is added to the other income of the household. They are subject to the progressive scale by brackets. Here are the current brackets:
| Taxable income bracket | Tax rate |
|---|---|
| Up to 11,600 euros | 0% |
| From 11,601 to 29,579 euros | 11% |
| From 29,580 to 84,577 euros | 30% |
| From 84,578 to 181,917 euros | 41% |
| Above 181,917 euros | 45% |
The effective rate on furnished rents depends on the total income of the household. A taxpayer in the 30% bracket who adds rental BICs sees their last euros of rent taxed at 30% income tax, to which 18.6% of social contributions are added.
Micro-BIC or real: the tipping point
The micro-BIC is suitable when actual expenses remain lower than the flat-rate deduction. For a long-term furnished rental, this means that your expenses must exceed 50% of the receipts for the real regime to become more interesting. With an ongoing loan and regular work, this threshold is often crossed.
For unclassified tourist accommodations, the deduction limited to 30% pushes even faster toward the real regime. Comparing the two regimes each year remains the only reliable method to optimize rental taxation.
The tax framework for furnished rentals is regularly evolving, and a draft finance law for 2027 proposes a cap on deductible amortizations, with different thresholds depending on the type of rental. The measure is not yet applicable, but it encourages monitoring the trade-offs between regimes now rather than facing a change in rules mid-course.
