The French tax law is based on a clear principle: a tax household can declare only one primary residence. For married or civil partnership couples subject to joint taxation, this uniqueness has until now seemed indisputable. However, the ruling n° 506653 from the Council of State, delivered on July 7, 2026, has introduced a breach that must be analyzed carefully.
Council of State Ruling of July 7, 2026: Real Impact on Housing Tax
The Council of State has acknowledged that the primary nature of a dwelling can be assessed separately for each spouse, even in the case of joint taxation. The decision exclusively concerns the housing tax on secondary residences, not income tax or capital gains tax.
We observe that the impact of this ruling is systematically overestimated in the mainstream press. The couple involved actually lost their appeal: the judges found that the evidence was insufficient to demonstrate that each dwelling effectively constituted the primary living place of one of the spouses.
The possibility of having two primary residences for a couple remains therefore conditioned on a rigorous demonstration, dwelling by dwelling, spouse by spouse. The address declared for tax purposes is just one indicator among others: the Council of State requires an examination of all evidence related to actual occupancy.
Evidence Criteria Used by the Tax Administration to Qualify Primary Residence
The administration does not rely solely on the taxpayer’s declaration. It cross-references several indicators to establish the actual place of residence as of January 1st.
- Current utility bills (energy, water, telecommunications) related to the volume and regularity of occupancy over the year
- The address used for administrative documents: vehicle registration, voter registration, bank correspondence
- Employer certificates, proof of children’s schooling, local subscriptions (transport, gym)
- The consistency between the address declared on January 1st and the actual movements observed, including through toll statements or digital connections
Occupying a dwelling for four months a year, even intensively, is not sufficient. Each spouse must be able to individually justify that the claimed primary residence is indeed the one where they reside most durably, with a habitual and effective occupancy for the majority of the year.
Dual Primary Residence and Income Tax: The Trap of Capital Gains
The July 2026 ruling does not change the regime of capital gains tax. The total exemption upon resale applies only to the dwelling classified as a primary residence under Article 150 U of the CGI. A couple selling a second property by invoking the Council of State’s jurisprudence on housing tax would expose themselves to a reassessment.
The capital gains exemption and the housing tax follow distinct regimes. The qualification retained for one does not apply to the other. We recommend never to extrapolate a favorable position obtained on a local tax to the entirety of wealth taxation.
Cases of Couples in Separation of Property or Divorce Proceedings
A married couple under the separation of property regime can, in certain configurations, justify having two distinct residences. Civil law allows spouses to have separate residences without it constituting a fault.
In practice, dual residence is tolerated by the tax administration when the separation is effective and documented. Couples in divorce proceedings who each maintain a distinct dwelling can claim two primary residences, provided that the judicial process is initiated.
Housing Tax on Secondary Residence: The Real Financial Stakes
Since the abolition of the housing tax on primary residences, the classification as a secondary residence incurs a direct tax cost. The housing tax remains due on secondary residences, and certain municipalities in high-demand areas apply a significant surcharge.
This context is precisely what motivated the appeal decided by the Council of State. A couple owning two properties in two different municipalities finds themselves automatically taxed on one of the two, even if each spouse effectively lives there as their primary residence.
Declaration Strategy After the July 2026 Ruling
The ruling opens a contentious pathway, not a declarative one. No tax form currently allows for checking two primary residences for the same household. A couple wishing to assert this possibility will have to contest the tax notice through a claim, and if necessary, before the administrative court.
The file must include solid evidence of distinct and durable occupancy for each dwelling. Without these elements, the jurisprudence of the Council of State remains inapplicable: the couple at the origin of the ruling learned this the hard way.
No administrative circular has been published to translate this ruling into tax doctrine. As long as the Official Bulletin of Public Finances does not incorporate this position, local tax services will continue to apply the rule of uniqueness. Caution dictates that a compelling file be assembled before any steps are taken, and not to confuse a specific jurisprudential opening with an acquired right.
