PROPERTY TAX 2023. Owners should see their bills soar this fall. In question, in particular, the increase in cadastral rental values.
[Mis à jour le 24 mai 2023 à 16h37] After an average increase of 1.9% in 2022, the property tax should rise again in 2023. And for good reason, the cadastral rental values which serve as the basis for the calculation of this local tax will rise sharply in 2023. As expected , the latter will now take inflation into account, which will automatically boost the rating. There property tax hike will therefore reach +7.1% minimum in many municipalities. Some of them should even go further to compensate for the reduction in state grants, the definitive abandonment of the housing tax and the increase from 5 to 10% of the household waste collection tax ( TEOM) in 77% of French communities. Review of the races, some owners could see their property tax explode by more than 10% in autumn.
The property tax is a tax payable by the owners. It can be an individual, a company or a legal person. Please note that two types of properties are subject to this tax. Built properties : these are essentially residential premises, building floors, car parks and land forming an essential and immediate dependency on these constructions. Then, unbuilt properties (ponds, salt marshes, mines…). Here, the tax is due by the owner or usufructuary: right to use a property and to receive rental income, without being able to dispose of it, in particular the sale of land, on January 1 of the tax year . It is collected by the local authority (municipality or EPCI, EPCI, Public establishment for inter-municipal cooperation with own taxation), on the territory of which the land is located. There are permanent or temporary exemptions (under conditions).
Almost all property owners are liable for property tax. However, a few exceptions exist and allow you to obtain an exemption. For a total exemption as a taxpayer, several situations exist. Be a beneficiary of the AAH, be over 75 on January 1 of the tax year, or finally, be a holder of the ASPA or the ASI. For the exemption relating to goods, new housing is concerned for a period of 2 years. Old housing that have been the subject of work with the aim of achieving energy savings can benefit from an exemption from property tax during 5 years. Finally, new constructions for use as a main residence financed at 50% by loans subsidized by the State benefit from an exemption from 10 years.
Keep in mind that your reference tax income must not exceed a certain threshold. You must also respect so-called cohabitation conditions, explained here. As reminded The particular, the exemption does not apply to the household waste collection tax (TEOM), appearing on your tax notice. What about property? Any new construction or addition of construction allows you to benefit from an exemption from property tax for 2 years from 1 January of the year following the end of the work.
In detail, you must make a declaration to your public finance center within 90 days after the end of the work. As a reminder, this is the H1 declaration for a house and H2 for an apartment. Rural buildings for agricultural use are not concerned property tax. Be aware that some communities allow you not to be subject to property tax. This is the case if your home is energy efficient and you have carried out work in this direction (which may give rise to partial or total exemption for 5 years) or if it is exposed to particular risks, for example . To find out about the property tax exemptions specific to your municipality, you should inquire with its public finance centre.
Property tax is a local tax that concerns property owners. Its amount depends on your situation on January 1 of the tax year, which means that you are still liable for property tax on real estate, even if you sold it during the year. The calculation is made from the cadastral rental value and the rate voted by the community. There is also the property tax on unbuilt properties. It is due by the owner or usufructuary of land on January 1 of the tax year. It is collected by the local authority (municipality or EPCI with own taxation), on the territory of which the land is located. There are permanent or temporary exemptions (under conditions).
Like housing tax, the calculation of property tax on built properties is based on two separate values. The first is the cadastral income. It corresponds to the cadastral rental value, reduced by a reduction of 50%. This value corresponds to the theoretical annual amount of rent that would have to be paid if the property were rented. It is established on the basis of around ten criteria. Created from rental market conditions in 1970, cadastral rental values are intended to evolve, as they are now considered obsolete. The tax authorities thus carry out a review on a case-by-case basis. If your property has been expanded or modified, this value is subject to change. The rental value is then multiplied by the tax rate (see below), determined by the local authority.
If you own your principal residence, it is possible that you will look gloomy when you know your property tax notice. This year, this local tax has increased by 1.9% on average. In some municipalities such as Marseille, the increase observed is quite dizzying: +13.1%. This unprecedented increase can be explained by two main factors. First, the revaluation of cadastral rental values of 3.4%, they serve as the basis for calculating property tax. Also, theinflation is now taken into account in the calculation. With the rise in consumer prices (6.2% in October 2022 over one year), the property tax is taking a big hit. In 2023, cadastral rental values could increase by more than 7%.
The method of calculating rental values will change in 2026. It will take into account the rents charged in 2023, and not those charged in 1970 as is still the case today. A new blow for the owners, because this new method should once again influence the tax base of the property tax. And de facto, increase its amount. Finally, keep in mind that your property tax may increase even if your municipality does not increase the rate. In reality, it is the household waste collection tax (TEOM) which could be a game changer. An increase of 5 to 10% in 77% of French communities is announced, enough to cringe even more.
- October 17, 2022 : payment by mail
- October 22, 2022 : online payment
- 27 October 2022 : withdrawal at maturity
Beware. A word of advice, pay now without delay on the tax website, by logging in with your tax ID and password. In case of late payment, you expose yourself to a 10% increase in the amount of local tax. “The penalty applies if you have not paid your tax within 45 days of the date of collection,” says one on the public service site.
Note that it is quite possible to monthly pay your local taxes, including property tax. Be careful however, for this, it is necessary to have a bank account or a booklet A, domiciled in France or at monaco. You have the possibility of monthly payment of your property tax until June 30th for the payment of your local taxes of thecurrent year. Remember that the monthly payment is only valid for the following year. The tax for the current year must be paid via a other means of payment.
If you want to know if you are potentially eligible for housing tax reform, a specific simulator is available by clicking here.
However, carrying out a pure and hard simulation of its property tax is not possible because of the too many criteria related to the consistency of the taxed property.
Have you already found that the note was particularly salty this year? Expect the local tax to be even higher in the years to come! Property tax jumped 27.9% between 2010 and 2020, according to the National Union of Property Owners (UNPI). The fault of a revaluation of the cadastral rental values, which serve as the basis for the calculation of the property tax. These are indeed based on the rental market conditions of the 1970s! The tax authorities are therefore updating them. A reform has been initiated, the first effects of which should be felt in particular from 2026. Another element to bear in mind: the rate voted by the municipality. Local authorities will no longer be able to count on the revenue generated by the housing tax, which has been abolished for main residences. Logically, the rate of the property tax should therefore be led to grow, an additional element that will weigh in the years to come. Here are the rates for the 10 largest French cities in 2022:
- Paris : 13.5% (unchanged)
- Marseilles : 44.54% (+13.1%)
- Lyons : 29.26% (unchanged)
- Toulouse : 35.35% (unchanged)
- Nice : 29.62% (unchanged)
- Nantes : 46.34% (+7.8%)
- Montpellier : 52.63% (unchanged)
- Strasbourg : 37.44% (+8.9%)
- Bordeaux : 46.38% (unchanged)
The rise was expected in 2022, but the ax fell. On average, the rate of built and unbuilt property taxes increased by 1.9% in 2022. This is the largest increase observed since 2010 according to the FSL firm. In fact, more than a quarter of the big cities and their associations have increased their taxes this year. In some regions, this local tax has simply soared over the past year, such as in Marseille (+13.1%) or Strasbourg (+8.9%).
The Taxe Foncière (TF) tax notice is generally available 3 weeks before the payment deadline of 15 October. If you have opted for the online opinion, an email is sent to you to inform you of the availability of your opinion in the “Documents” tab of your private space. In 2021, property tax notices are posted online on August 29, 2022 for the non monthly taxpayers and the 19 september for the monthly taxpayers to property tax. If you opt to receive the notice by paper, the property tax notice is sent by post during September if you are not monthly paid, at the end of October if you are monthly paid.
If you are over 65 and under 75 on 1 January of the tax year, you can benefit from an automatic property tax relief and thus benefit from a reduction of 100 euros . Please note that your reference tax income must not exceed a threshold. The relief is automatically applied by the tax authorities. Subject to income conditions, a taxpayer liable for property tax can benefit from a ceiling.
“This device allows the taxpayers concerned to benefit from a reduction in their property tax contribution of more than 50% of their income”, specifies Bercy on its site. You must submit a request for a ceiling, by completing form n°2041-DPTF-SD, here. Note that it is also possible to obtain a reduction in property tax if your property, apartment or house, is unoccupied. Attention, you will need to provide supporting documents to the tax authorities