TAEMUP reform: what changes for the annual pleasure craft tax in 2027?

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Key takeaways:

The reform of the annual tax on pleasure craft (TAEMUP 2027) plans for an in-depth modification of the boat tax calculation, moving from administrative horsepower to kilowatts (kW), introducing new scales based on hull length, and overhauling age-based deductions.

Its entry into force is planned for January 1, 2027, but it is not definitive: its application remains conditional on the outcome of ongoing negotiations between the French Nautical Industries Federation (FIN) and the government. If applied as is, the reform would lead to a significant increase in tax for highly motorized boats.

What is the annual tax on pleasure craft?

The annual tax on pleasure craft, better known by the acronym TAEMUP, is a tax paid annually by owners of pleasure boats registered in France. It applies to vessels used for private purposes, whether they are motorboats, sailboats, personal watercraft (PWC), or other specific nautical craft.

Historically, the TAEMUP is based on two main criteria:

• The length of the boat's hull
• The engine power.

Boats covered by the TAEMUP until now

Today, the TAEMUP mainly concerns boats with a hull length exceeding 7 meters or whose engine power exceeds a certain administrative threshold—expressed in fiscal horsepower. Sailboats equipped with an auxiliary engine are also covered, even when the primary means of propulsion remains the sail.

The annual boat tax reform initiated by the State

The reform of the annual tax on pleasure craft is supported, legally, by Article 16 quinquies of the 2026 Finance Bill. The core of the reform consists of profoundly modifying several articles of the Code of Taxes on Goods and Services, particularly those relating to the scope of taxation, applicable scales, and deduction mechanisms.

The limitations of the calculation based on administrative HP

The current TAEMUP calculation basis, deemed obsolete by the government, is a major point of the reform project:

According to the government, the taxation system based on administrative horsepower relies on data that is difficult for boaters to understand—rarely mentioned in common engine technical documents. This administrative value does not accurately reflect the boat's actual power or effective performance.

→ Let's take the Yamaha F series as an example:

The calculation basis (stroke/bore/number of pistons) remains the same for a 200, 225, or 250 HP model—meaning the same tax applies under the current calculation. However, the power expressed in kW is very different: 147.1, 165.5, and 183.9 kW respectively. The same is true for many engine manufacturers who produce the same engine block (outboard or inboard) for different output power levels.

With the rise of powerful outboard motors, twin-engine setups, and modern configurations, the gap between fiscal power and propulsive power has widened: today, the bracket-based scale increases threshold effects, makes the current system inequitable, and is a regular source of disputes.

According to the authorities, the reform aims to simplify procedures and restore a certain technical consistency. It would be based on more objective and directly measurable data.

But beware: the financial effects would be significant for certain boat profiles…

Discussions ongoing with the nautical sector

Aware of the effects this TAEMUP reform could generate, the French Nautical Industries Federation (FIN) has initiated negotiations with public authorities. The discussions focus in particular on the level of the scales, the thresholds adopted, and the deduction mechanisms, in order to limit effects deemed excessive for some boaters.

TAEMUP reform: entry into force on January 1, 2027

Although the text provides for an entry into force in 2027, this deadline remains conditional on the exchanges between the FIN, the various associations involved in the nautical industry, and the government: the legislator has intentionally left a significant window of time before the entry into force to allow for adjustments.

As long as the negotiations are not concluded, the final framework of the reform could still evolve!

TAEMUP voted: what the reform legally provides

With the new version of the TAEMUP, the tax calculation would still rely on a distinction between hull taxation and engine taxation, as well as on a progressive scale.

Among the major changes are:

• Accounting for the actual power of the boats, expressed in kilowatts
• Reduced, less advantageous deductions.

The overhaul of the TAEMUP tax scale based on engine power

With the TAEMUP reform, the reference to administrative horsepower would be abandoned in favor of propulsive power expressed in kilowatts (kW). The entry threshold into the scope of taxation would be set at 120 kW, equivalent to about 163 horsepower.

The scale would become progressive, expressed in euros per kilowatt, with increasing taxation based on the cumulative power of the engines. The amount of the TAEMUP would thus depend on objective technical data—directly from the manufacturer's specifications—and avoid sharp breaks between two power levels.

TAEMUP 2027 reform: new progressive scale in euros per kW

The evolution of the tax scale based on hull length

Currently, the portion of the TAEMUP related to hull length relies on a bracketed scale: boats under 7 meters are not taxed on this criterion, while larger units are subject to a contribution that increases according to their length.

With the new scale applicable from 2027, we would see a revaluation of intermediate brackets and the introduction of new brackets for very large units. Boats over 15 meters and those exceeding 24 meters would see their taxation increase more noticeably.

Evolution of the hull length scale before and after the TAEMUP reform

TAEMUP: new age-based deductions applicable in 2027

Until now, the deduction rules applicable to the TAEMUP were based on a simple mechanism: a single article of the Code of Taxes provided for a global reduction for craft built before 2008, without a clear distinction between the portion related to the hull and that related to engine power.

The 2027 TAEMUP reform would mark the end of a single regime, with overhauled age-based deductions: the former "general" deduction would be replaced by more targeted rules, with a tightening for certain profiles—highly powerful motorboats, in particular, and old PWCs.

New deductions planned with the TAEMUP reform (2027)

Finally, new provisions would be put in place, notably a decarbonized energy bonus with a 50% reduction on the power term for the affected vessels.

TAEMUP reform: before/after calculation examples

Example 1: Recent, highly motorized powerboat

Let's take the case of a recent open-type powerboat, equipped with two powerful outboard engines: before the TAEMUP reform is passed, the taxation is based on hull length and power expressed in administrative horsepower. It corresponds to a total amount that is already high but relatively stable over time.

With the new calculation method based on kilowatts, cumulative power would become the determining factor: the "engine" portion of the tax would increase sharply, while the portion related to hull length would only change marginally.

The result would be a significant increase in the TAEMUP, which could exceed several hundred euros per year.

TAEMUP calculation for a 2020 Cap Camarat 10.5 (no deduction)

Example 2: Old sailboat with auxiliary motorization

Conversely, the case of an old sailboat, equipped with a low-power inboard engine, provides perspective on the impact of the reform: indeed, the portion related to hull length would increase slightly, but the engine power would remain well below the most punitive thresholds.

The overhaul of age-based deductions, however, could in some cases lead to a significant increase in the total tax. Even for boats considered frugal in terms of motorization, the reform could therefore result in an increase.

TAEMUP calculation for a 2003 Oceanis 47 sailboat

Boaters, beware: every piece of information communicated to the maritime administration must be accurate to avoid any taxation errors. If the reform effectively comes into force, incorrectly declared power, an imprecise year of construction, or the omission of an applicable deduction could have significant financial consequences. If needed, trust our team to assist you with your declarations!

FAQ – TAEMUP 2027 Reform: key takeaways

Will the TAEMUP reform actually apply in 2027?

The text provides for an entry into force on January 1, 2027, but this application remains conditional on the outcome of ongoing negotiations between the FIN and the government. As long as these discussions are not finalized, the mechanism can still be adjusted.

How will the new boat tax be calculated?

If it comes into force in this format, the new TAEMUP will rely on two elements:

• A scale based on hull length
• A progressive scale based on engine power expressed in kW, replacing administrative horsepower.

Which boats are most affected by the reform?

Highly motorized boats, especially those equipped with multiple outboard motors, would be the most affected. Low-power or old units would generally remain less exposed.

Will old boats still benefit from deductions?

In principle, yes, but the rules would change: deductions would now be differentiated between hull length and engine power, with variable rates depending on the year of construction. In some cases, the reduction would be less favorable than before.