Several regulatory and pricing changes take effect on January 1, 2026

Starting January 1, 2026, France implements a range of measures impacting personal finances, housing, transport, and the environment, amid the lack of an adopted state budget. Key adjustments include a 0.9% increase in basic pensions, the suspension of the MaPrimeRénov’ scheme, and price rises for gas and postal packages.

January 1, 2026, ushers in various reforms across France without a finalized state budget, following the adoption of a social security financing law on December 16 of the previous year.

In housing and energy, the MaPrimeRénov’ program remains suspended indefinitely, as announced by Housing Minister Vincent Jeanbrun on December 21, due to dossier overload and excessive fraud. A new energy performance diagnostic (DPE) calculation method applies, lowering the electricity coefficient to match European standards; existing DPEs stay valid for ten years. The benchmark gas price rises by 0.59 centimes to 136.88 euros per megawatt-hour.

On taxes and savings, unusual cash gifts between individuals – exceeding 2% of the donor's assets or 2.5% of annual net income – must be declared online, covering jewelry, vehicles, and shares. Housing savings plans (PEL) opened in 2026 yield 2% gross, up from 1.75% in 2025.

For pensions and work, basic pensions rise by 0.9%, below the projected 1.3% inflation. Agricultural pensions now use the 25 best career years. The minimum wage increases by 1.18%, bringing the net monthly amount to 1,443.11 euros.

Transport fares see the Île-de-France monthly Navigo pass increase by 2.3% to 90.80 euros. Postal rates average a 7.4% hike, with a green letter at 1.52 euros and Colissimo up 3.4%. Packs of 20 cigarettes average 13.50 euros.

Additional measures enforce gender parity in ministerial cabinets, end lifetime perks for former prime ministers after ten years (car, driver, security), allow farmers to shoot wolves defending herds without prior approval, ban microplastics in rinse-off cosmetics, and activate the EU's carbon border adjustment mechanism to tax polluting imports.

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French Prime Minister Sébastien Lecornu presents the 2026 budget with tax hikes and spending cuts in a press conference at the National Assembly.
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French government unveils 2026 budget with tax hikes and spending cuts

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On October 14, 2025, Prime Minister Sébastien Lecornu presented the 2026 finance bill, aiming to cut the public deficit to 4.7% of GDP through €14 billion in extra tax revenues and €17 billion in spending savings. The budget targets high earners, businesses, and social expenditures, while drawing criticism over its feasibility.

France's 2026 finance law concludes with a fragile compromise, criticized as a list of renunciations amid demographic, climate challenges and an unsustainable debt. Prime Minister Sébastien Lecornu announced on January 16 a lackluster deal, where each party claims small victories amid widespread frustration.

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Prime Minister Sébastien Lecornu's government unveiled the 2026 budget project on October 14, including the suspension of the pension reform via an amendment to the PLFSS in November. This concession to the Socialist Party aims to stabilize the country but draws criticism from the right and opposition. The plan targets a 30 billion euro deficit reduction through tax freezes and cuts to fiscal niches.

Prime Minister Sébastien Lecornu announced several measures on Friday evening to amend the 2026 budget project, hoping to secure a compromise with opposition parties and avoid censure. Key announcements include an increase in the activity bonus and the abandonment of unpopular tax reforms. He has given himself until Tuesday to finalize an agreement, without specifying whether he will use Article 49.3 or ordinances.

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The differential contribution on high incomes, created in 2025, brought in only 400 million euros, nearly five times less than expected, according to the Ministry of Economy and Finance. This tax, aimed at ensuring a minimum 20% taxation for the wealthiest, was largely circumvented by targeted taxpayers. It highlights the challenges in effectively taxing very high incomes in France.

The 2026 finance bill was passed using Article 49.3 of the Constitution, despite the Prime Minister's initial promise against it. The public deficit is projected at 5% of GDP, down from 5.4% in 2025, exceeding 150 billion euros overall. This amounts to an average of 3614 euros per one of the 41.5 million fiscal households.

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Debates on the 2026 budget in the French National Assembly are bogging down, with unusual alliances between RN, PS, and MoDem leading to the adoption of tax increases totaling 34 billion euros in 24 hours. Prime Minister Sébastien Lecornu describes the situation as a 'very uncertain endurance race', while general rapporteur Philippe Juvin deems it highly likely that the text will not be examined on time. Industrialists denounce overtaxation threatening reindustrialization.

 

 

 

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