The property tax is part, with the residence tax, of the local taxes which are perceived by the territorial collectivities, communes, communities of communes or regions at the end of the year. We also talk about property taxes.
There are two types of property taxes:
The property tax concerns the owners of taxable real estate (housing, parking, business premises, land), including when these are rented out. Barring exceptions, empty dwellings and vacant premises can benefit from a reduction or an exemption from property tax.
This local tax is established on the basis of the taxpayer’s situation on January 1 of the tax year.
Property tax payment is fast approaching. If you are the owner or usufructuary of an apartment or house (even if the accommodation is rented to a tenant), you will have to pay the property tax on built properties (TFPB) again this year. Property tax notices are available from August 29 if you are not monthly paying and September 19 if you are monthly paying. As for the payment deadline, you have until October 15 or until October 20, 2022 depending on the payment method used to pay it according to the Service-Public.fr website.
If you choose dematerialized payment (direct online payment by internet, smartphone or tablet, direct debit on the due date or monthly), the payment deadline is extended to October 22, 2022 at midnight. In practice, the direct debit will then be made to your bank account from October 27, 2022.
Please note that for amounts below €300, you can pay until October 17, 2022 by:
But how much will it cost you? Note that to give you an idea, according to the Directorate General of Public Finance (DGFiP), owners paid an average of 849 euros in property tax in 2021.
As Capital points out, the bill for owners promises to be steep in the coming years. At issue: the review of rental values operated by the cadastre. These values have already increased by 3.4% at the beginning of 2022 and a further increase of 2 to 3% is expected for January 2026. And for the best located homes, this increase could reach 10%.
The situation will be worse for owners of second homes offered for tourist rental. A surcharge has been put in place for homes located in “tense” rental areas, remind our colleagues. Already applied in major French cities, it can reach 60% in Paris, 30% in Biarritz or 40% in Ajaccio. With the revision of rental values in 2026, the rating will therefore explode.
Good news for owners living in large French cities. According to a study by the firm FSL (Finances and Local Strategies Research Cabinet) unveiled this Wednesday, May 19, “in a large majority, the cities and their groups with their own taxation (38 territories out of 42) maintained their tax rate in 2021. “.
Despite the health crisis, which has impacted local budgets with “additional expenditure to ensure the protection of agents and the population” and the abolition of housing tax on main residences, local authorities have not chosen to make the amount of the property tax soar.
Indeed, “in this context, the big cities and their own tax groups have very moderately activated the tax lever, the rate of change in property taxes, built and unbuilt, amounting to 0.3%”, analyzes FSL firm. The abolition of housing tax has in practice been offset by the payment of the departmental share of property tax on built properties to towns and a fraction of VAT for groups of municipalities. While the 0.3% increase in property tax remains higher than the decreases of 0.4 and 0.3% respectively observed in 2019 and 2020, it nevertheless remains lower than the rate dynamics observed in previous post-election years.
In cities with more than 100,000 inhabitants, the increase in property tax was 1.8% in 2015 and 5.1% in The FSL firm specifies that, like the territories of cities with more than 100,000 inhabitants, cities with 40,000 to 100,000 inhabitants and their groupings also “moderately used their rate power”. In these territories, the rate of increase in property taxes averages 0.8%. Very good news when you know that the Association of Mayors of France assured at the beginning of May that a third of the municipalities planned to increase the property tax this year, on average by 2 or 3%.
“We have a third of the communities which plans to increase the rates of the property tax in 2021”, said the secretary general of the AMF Philippe Laurent, during the presentation to the press of the results of a survey carried out with the Territory Bank. “We estimate that the increase in the rate of property tax will be on average for all municipalities of 2 to 3%”, he added, recalling that this tax is the last tax lever for municipalities. Philippe Laurent, mayor (UDI) of Sceaux (Hauts-de-Seine) had explained that this increase in taxation was the consequence of the loss of revenue suffered by the municipalities during the first confinement which “were not completely compensated by the ‘State”. An estimate which was therefore well above the small increases announced by the FSL firm.
As a reminder, for owners who have opted for the deduction of their property taxes at maturity, the tax will be deducted from them as of October 25, 2021. For those who are not deducted, neither monthly nor, at the due date, the date limit for paying the 2021 property tax is set for Wednesday, October 20, 2021 for individuals who go through the tax website or via the Impots.gouv application on a smartphone.
For all other taxpayers, the deadline for payment of property tax is Friday, October 15, 2021.
Property tax and housing tax have in common that they are local taxes, the rate of which depends on the communities that levy these taxes (municipalities, departments, etc.). These are the two main local taxes, which are attached to the location of the main or even secondary dwellings.
The property tax concerns the owners of the land, whether it is built on or not, while the housing tax applies to the people who actually occupy the accommodation. In addition, while the housing tax should disappear by 2022, the property tax will continue to be collected.
Even if the situations vary from one city to another for the housing tax and the property tax, the latter is generally higher. There are several reasons for this:
The increase in the property tax, which can be decided by the local authorities or by a fixed coefficient fixed at the national level, is often particularly scrutinized. Between 2013 and 2018, a taxpayer’s property tax increased by an average of 10.8%, and even 34.7% in 10 years, indicates the National Union of Property Owners in its National Observatory of Property Taxes of 2019 This is much more than inflation over the same periods (3.8 and 9.9%) and rents (2.3 and 9.3%). Obviously, this increase is not the same depending on the cities or departments depending on their policy.
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Rental values, which represent the theoretical annual rent that the owner could (get) if it were rented, are one of the bases for calculating the property tax. They have not been revised since 1970 for metropolitan France. The overhaul of this is regularly mentioned, but is politically sensitive, because it induces changes, sometimes substantial, for many owners. The finance bill for 2020 provides, in its article 146, for a revision of rental values to better reflect the reality of the market.
These are to be reported on so that the reference date is now 2023, before applying in 2026. It is not yet possible to predict what changes this revision will have. The changes will in any case be gradual: in 2017, the revision of the rental values of professional premises was accompanied by a leveling and smoothing of the increase or decrease in contributions over 10 years.
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The payment of the property tax is based on the situation on January 1 of the current year. Thus, if you move during the year, you will have to pay for the first accommodation.
The notice of taxation is sent to the owner of the dwelling or the land. If the accommodation is rented out, the owner must still pay this tax and cannot pass it on to the tenant.
If the accommodation is a gite, rented seasonally and the owner never lives there, then it is subject to the Contribution foncière des entreprises (CFE). Since 2019, the CFE will only be due if the annual income from furnished rentals is greater than €5,000.
Property tax and auto-entrepreneurs
All micro-entrepreneurs are subject to the business property contribution (CFE), except in the year of their creation. Companies are exempt if they generate less than 5,000 euros in income, or if they meet the conditions of article 1449 of the general tax code, for example if “their activities [are] essentially cultural, educational, health, social, sports or tourism” or in article 1466 F.
If you are subject to the CFE, the levy of the property tax is defined on the basis of the rental value of the premises which are used for the activity of micro-entrepreneur. If this is not possible, it will take the form of a minimum contribution determined according to turnover.
All properties are affected by the property tax, including annexes a little far from the main residence. Exceptions exist however, for example at the time of construction. However, taxation differs depending on their nature.
All properties that are “fixed to the ground in perpetuity, in such a way that it is impossible to move them without demolishing them” are subject to property tax on built properties, indicates the practical brochure local taxes 2019. Thus mobile barracks , caravans, dormitory wagons are exempt. Conversely, “developments forming part of it” must also be counted. This may be :
All extensions, both to the main residence and to the fittings, must be declared. The same applies to outbuildings (terraces, greenhouses, swimming pools, verandas, cabins or garden sheds). The owner has 90 days after the end of the work to make his declaration to the tax office and can benefit from a two-year exemption on the expansion. The form is available here.
Unbuilt properties of any kind, located in France, are subject to property tax, according to the definition of article 1393 of the general tax code. It concerns for example, except for specific exemptions:
Since 2011, the departments and regions no longer collect property tax on unbuilt properties, it is the municipalities and communities of municipalities.
The date of receipt of the property tax payment notice is September 10 or 21, 2020, approximately three weeks before the deadline for payment by mail.
You receive the property tax notice either by mail or online. The date of availability is different according to these two means. It also changes whether the payment is monthly or not. In the latter case, an email is sent to notify that the notice has been made available. If, due to the difficulty in establishing the property tax, the tax notice is sent later, then the payment deadline is postponed accordingly.
The posting of the tax notice on the property tax in your private space is done on September 10, 2020 for non-monthly people and on September 21, 2020 for monthly people.
Tax notices are sent by post at the end of August for the non-monthly payment, and in mid-September for the monthly payment.
Posting of the notice in your secure area
Sending your paper notice by post
If you are not monthly
From September 10, 2020
From August 31, 2019 (2020 date not known)
If you are monthly
From September 21, 2020
From September 13, 2019 (2020 date not known)
Housing tax, property tax: when and how to pay them? If you live in or rent a property, you are subject to housing tax and/or property tax. When should they be paid?
Three components are taken into account in the calculation of the property tax:
To know your property tax, you must apply the following product:
Cadastral rental value x revaluation coefficient x administrative allowance x rates set by local authorities.
When several local authorities collect the property tax, you can add their levy percentage in the calculation to find out more easily the overall amount to be paid.
In the tax notice, the cadastral rental value, the revaluation coefficient and the abatement of the administration are already calculated together and indicated behind the mention “Taxable base”.
For example, a person living in Paris must pay the property tax for his property. Its total gross rental value of the premises, discounted with the coefficient is 6500 euros.
To this amount, I must apply the 50% administration allowance for built properties.
We must then look at the tax rate of the municipality: 13.5% in 2019 for Paris, one of the lowest rates in France. Paris being also a department, there are no other levies.
We can therefore do the calculation with the formula above, which gives 6500 x 50% x 13.5% = 438.75.
The property tax therefore represents 438.75 euros.
The property tax on built properties is established on the basis of the cadastral rental value of these properties, which must be divided by two. The cadastral rental value is updated and revalued each year. To this result, we must add a rate, which is voted by the local authorities or calculated from a product voted for union shares and special equipment taxes. If during the year, you make changes to your home, the increase in its rental value will only be taken into account on January 1 of the following year to calculate the property tax.
For example, a person living in Marseille must pay the property tax for his property. The total gross rental value of the premises, updated with the coefficient, is 5000 euros.
To this amount, I must apply the 50% administration allowance for built properties.
We must then look at the tax rate of the municipality: 41.66% in 2019 for Marseille, one of the lowest rates in France. The Bouches du Rhône department charges 15.05
We can therefore do the calculation with the formula above, which gives 5000 x 50% x 41.66% = 1041.50 euros for the city and 376.25 euros for the department
The property tax therefore represents 1417.75 euros in total.
For unbuilt properties, the calculation to know its property tax is established according to the cadastral rental value of these properties under deduction of 20% of its amount. As with built properties, this amount must then be multiplied by the annual amount set by the local authority.
It should be noted that owners of undeveloped land are subject to property tax on undeveloped properties regardless of the construction projects relating to these lands and even when a building permit has been issued.
For example, a pitch is being built in Lille. It is therefore subject to property tax on unbuilt properties, where the rate for property tax on unbuilt properties is 16.65% for the city and metropolitan area and 51.84% for the department. If its cadastral value, updated with the coefficient, is worth 3600 euros, the housing tax will amount to
3600 x 80% x 16,65% x 51,84% = 248.58 euros.
So the owner must pay 248.58 euros of property tax.
The tax being local, there are great differences between inhabitants of different cities on the rate of property tax on buildings. However, this difference is not exclusively due to the policies of the mayors of these cities since the intermunicipalities and, more importantly, the departments also contribute to this rate. Details can be found on the tax rate study for large local authorities by FSL. The rates will be updated for the year 2020 as soon as the tax administration is informed.
Property tax rate on buildings in 2019
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It is possible to benefit from exemption from property tax depending on:
In some cases, you have to apply to benefit from it, it is better to inquire at the nearest tax office.
Possible exemption situation
Duration of exemption
New housing, addition of construction, changes of use of buildings listed by decree
Vacant accommodation under exceptional circumstances
During the vacation
New constructions for use as a main residence financed at more than 50% by loans subsidized by the State
People aged over 75* whose reference tax income is capped
Beneficiaries of the allowance for disabled adults
Persons aged over 75 on 1 January of the tax year, below a certain income, which is €10,988 over the previous year, for the first part of the family quotient, increased by €2,934 for each additional half-share according to article 1417-I of the general tax code. This exemption also applies if the person has to go to a retirement home, unless the house is then inhabited by other people, including the family. Finally, in a couple, it is enough that one of the two people is 75 years old for the exemption to apply.
Recipients of the solidarity allowance for the elderly and of the supplementary disability allowance are also exempt from property tax.
New constructions are completely exempt from property tax for two years. The same applies to construction additions, or even within the framework set by law, certain changes of use such as the conversion of a rural building into a dwelling in the event of major work.
New constructions assigned to the main dwelling and financed up to more than 50% by means of loans subsidized by the State are exempt from property tax on properties built for a period of fifteen years from the year which follows that of their completion. These dwellings must be a principal residence. The exemption does not apply to old buildings acquired by means of state-subsidized loans, even if they are the subject of major work.
Vacant dwellings are normally subject to property tax. There are exceptions, if it is a house intended for rental or a commercial building usually used by the taxpayer. The vacancy must be for a minimum of three months, beyond the owner’s control. This aid must be claimed by the taxpayer and only concerns the actual vacation period. All ancillary taxes, including the Household Waste Collection Tax, are also affected by this exemption.
Residents of the Disabled Adult Allowance can benefit, under the same income conditions as the elderly, from a total exemption from their property tax. The reference income must not exceed €10,708 for the first part of the family quotient, increased by €2,859 for each additional half-part.
If you are not eligible for property tax exemptions, it is possible to benefit from relief depending on your personal situation (age, income) or that of the property subject to tax. It is sometimes necessary to make the request, in particular to the local authorities and to set up a file: it is therefore necessary to inquire with the local authority or the nearest tax office before undertaking the procedures.
Owners aged over 65 and under 75 on 1 January of the tax year and whose income is also less than €10,988 obtain a relief of €100 on the property tax of their main residence. The relief is granted automatically, without the need for a request.
If the energy level of your new home is higher than the regulations in force, you can benefit from an exemption of 50 or 100% of the property tax on your home for up to five years. It is the local collectives who can grant this advantage on deliberation. This must be done before October 1 of a year for it to be applied the following year. This exemption begins after the two years already possible with a new home.
In addition, if you carry out major energy work on a pre-1989 home, the local authorities can also grant you an exemption under the same conditions. However, the work must have cost more than 10,000 euros excluding labor the year before, or 15,000 euros over 3 years.
Agricultural properties classified in the categories “land, meadows, pastures, orchards, vineyards, woods and moors, lakes, ponds and gardens” are exempt from property tax on unbuilt properties up to 20%, or entirely if they are located in Corsica. If they use organic farming, communities can exempt them from the tax for 5 years. The “young farmers” if they benefit from the installation grant are entitled to a reduction of at least 50%, or even more if the communities grant it, for 5 years.
For land replanted with wood before July 2011, the exemption is granted for 30 years.
You can check several points of your property tax:
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