Property tax: why it is increasing

by time news

2023-08-30 12:12:24

If the first property tax notices have been sent by mail since August 23, all have been posted on the tax website this Wednesday, August 30. For owners who are paid monthly, you will have to wait until September 22 to find out the amount of local tax.

This year 2023 is marked by a general increase in the property tax, unprecedented for nearly forty years. An increase of 7.1% was thus voted at the national level and will be applied to all the municipalities of the territory. But some have decided to apply an additional surcharge.

► Who is concerned?

Owners and usufructuaries of real estate (both unbuilt land and built housing) on ​​January 1, 2023 must pay property tax. Tenants, however, are not affected.

Some taxpayers may be exempt: people receiving the allowance for disabled adults (AAH), people over the age of 75 or those who are recipients of the solidarity allowance for the elderly and the additional allowance for disability, for example. Owners of new housing are also exempt from tax for two years.

► Why is it increasing?

The increase in the property tax is due to the importance of inflation. It is indeed the cadastral rental value, ie the theoretical annual rent that the owner could draw from the property if it were rented, which serves as the basis for calculating the property tax. This base being indexed to inflation, this mechanically led to an increase in the property tax of 7.1% for all owners in 2023 (compared to 3.4% in 2022).

To this national increase is added the tax rate voted every year by the local authorities which can decide to increase it, maintain it or reduce it. In 2023, 14% of French municipalities have thus decided to increase the property tax in order to cope with the inflation of energy bills but also to finance new public services for the inhabitants. Since the abolition of housing tax on main residences, it is indeed one of the only tax levers available to them.

► Which municipalities are concerned?

This year, more than 5,800 localities have therefore increased their property tax rates, including one in five large cities.

It is in Île-de-France that we find the most significant increases. In Paris, Mayor Anne Hidalgo voted for a 52% increase, which she justified by the investment of 1.2 billion euros in swimming pools, nurseries, green spaces or cycle paths.

The increase amounts to 35% in Meudon (Hauts-de-Seine) or even 18.5% in Bobigny (Seine-Saint-Denis). In Grenoble (Isère), there is a 25% increase, in Metz (Moselle) 14%, in Limoges (Haute-Vienne) 10% and in Lyon (Rhône) 9%.

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