Good news for retirees, who may no longer pay property tax in 2023. Indeed, the finance law for 2023 brings several adjustments to property tax. As the service-public.fr site reports, the conditions for exemption and relief for the elderly or disabled are notably extended.
Several conditions must be met to be exempt from property tax in 2023:
The means test depends on your reference tax income for the previous year, which must be below certain ceilings. Here they are for 2023:
Until December 31, 2022, to benefit from this exemption, the tax site specified that “the beneficiary must live alone, or with his spouse, or with dependents within the meaning of income tax , or with persons receiving the same allowance or with persons respecting the limit of the reference tax income”.
But the conditions for being exempt from property tax changed on January 1! “These reliefs and exemptions may also be granted to elderly people housed in a long-term care establishment or a retirement home, if they retain the enjoyment of their former main residence. The condition that the accommodation remains free of any occupation, including free of charge, is deleted”, details the site of the Public Service.
Property tax payment is fast approaching. If you are the owner or usufructuary of an apartment or a 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 paid and September 19 if you are monthly paid. As for the payment deadline, you have until October 15 or 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.
The property tax will increase again in 2022. But for some much more than for others. The FSL firm estimated the tax increase at 1.9% nationally. Marseille, for example, voted to increase this tax by 14%.
But it is in Nîmes that it weighs the heaviest in the owners’ budget. It represents more than two additional monthly installments of credit per year. For example, for a property of 70 m² purchased with a loan over 20 years, this tax amounts this year to 1,551 euros for a monthly loan payment of 723 euros per month. Next come Saint-Etienne, Le Havre, Le Mans, and Angers. On average at the national level, this local tax represents the equivalent of a little more than one additional monthly payment per year of credit.
Property tax will explode in many cities in 2022. 16.5% in Marseille, 13.3% in Tours, or 12.6% in Strasbourg! A real blow for many owners already faced, like all French people, with historic inflation. The National Union of Property Owners (UNPI) has just filed a complaint against the City of Marseille to denounce this dizzying increase. A first in its history, reports BFMTV.
Aware of the situation, the State would therefore consider making a gesture, like what it granted to tenants with the freezing of rents. The method: limit the increase in rental values which serve as the basis for calculating the property tax and thus lower the note for the owners. The subject “will be studied as part of the draft budget for 2023”, Bercy told the news channel.
Property tax is a tax payable only by owners. If you are the owner or usufructuary of an apartment or a house, even if the accommodation is rented to a tenant, you will have to pay property tax on built properties. According to the UNPI barometer, the property tax has increased by 27.9% in ten years and it is therefore not this year that things should improve. Indeed, with the resumption of inflation, the revaluation of 3.4% of the cadastral rental values, serving as the basis for the calculation of this local tax, will cause prices to soar in 2022. In 2022, the rental value will thus be increased by 3.4%, a record since 1989, resulting in an increase in the price of the property tax.
Added to this are the decisions of the municipalities which fix the rate of the rental base. In Strasbourg, for example, the metropolitan share of property tax on buildings will increase to 4.6%, compared to 1.15% previously. This equates to an increase of 64 euros for households. “This will have a considerable influence, because when the rate increases at the same time as the base, it multiplies the increase tenfold. This is the catapult effect”, warns in Le Parisien, Pierre Hautus, director general of the National Union of property owners (UNPI).
As a reminder, property tax notices are usually received around September. Regarding the payment deadline, the 2022 deadlines should be substantially the same as in 2021. Last year, you had until October 15 to pay it. You benefit from an additional period until October 20 if you had opted for online payment, with a direct debit from October 25. Be careful, however, “the deadline for joining the direct debit for the property tax” was set for September 30, 2021, specified the public service site on this subject.
As Capital indicates, the addition for owners promises to be steep in the coming years. At issue: the review of rental values carried out 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 surge 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 large French cities, this 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.
Property tax: no soaring prices in 2021
In 2021, the property tax had finally not soared. The mayors had then decided not to undertake too violent measures on the fiscal level at the end of the mandate in order to seduce the voters and to implement the tax increases after the elections. A study by FSL and spotted by Mieux Vivre Votre Argent indicated that “a large majority of cities and their own tax groups (38 out of 42 territories) had maintained their tax rate in 2021”.
But then how much is the property tax for owners in France? The mortgage broker Meilleurtaux has screened this local tax in the 20 largest cities in France, for a couple with two children residing in a 70 square meter dwelling. According to the results obtained, the latter pay an average of 1,220 euros per year, or nearly 101 euros per month. This is 3 euros more than in 2020 (the owners paid monthly 98 euros) and 8 more than in 2018 (92 euros per month). From one municipality to another, the amounts vary however from simple to double, as is the case between Paris and Montpellier. Households in a comparable situation will pay 745 euros per year “only” in the capital, against 1,533 euros in the city nicknamed the “Gifted”.
Seniors, disabled or modest people benefit from an automatic exemption from property tax. It’s about :
Among the 50 largest French cities, the property tax has varied a lot in 10 years. According to the latest data from the national property tax observatory published on Tuesday 19 October by the National Union of Property Owners (UNPI), the property tax paid by taxpayers increased by 27.9% between 2010 and 2020, according to UNPI calculations. This is four times more than inflation over the same period. At the top of the cities that have increased their property tax the most in ten years, we find the small town of Tavaco, in southern Corsica (385 inhabitants in 2018 according to INSEE) with a 234% increase in property tax alone from 2010 to 2020. Next on the podium are Bouqueval (179.5%) and Villiers-Adam (176.3%), two towns located in Val-d’Oise. If we focus on the 50 largest French cities, it is in Nantes that the property tax has jumped the most in ten years (37.5%), ahead of Villeurbanne (36.8%), Clermont-Ferrand (36% ), Lille (36%) and Saint-Denis in Seine-Saint-Denis (33.6%).