The property tax is a tax paid annually by owners on January 1, whether their property is built or not built. In 2023, owners have already had to pay their property tax, and the bill has been steep.
Nationally, cadastral rental values are amounts used by the government to estimate the value of real estate for the purposes of calculating local taxes such as property tax.
These amounts are determined based on the characteristics of the property and are set by the cadastre, a register of land properties. Used to calculate property tax, they were revalued by 7.1%. In addition, 15% of municipalities have increased their property tax rate, sometimes reaching spectacular increases, such as in Paris where it increased by more than 60%.
Unfortunately, property owners are not at the end of their troubles for 2024. The first reason for this potential increase is linked to inflation which persists at 4% this year, according to INSEE. This surge in prices impacts the rate of revaluation of cadastral rental bases, set according to the harmonized consumer price index between November N-2 and November N-1.
According to experts from the Congress of Mayors of France, a revaluation of at least 4.1% is expected in 2024. Some even estimate a range between 4.2% and 4.5%. This increase in rental values could result in an increase of at least 4% in property taxes for owners, unless their municipal council votes to increase the rate.
Beyond rental bases, the question of rates voted by municipalities remains crucial. Municipal councils will have to make choices when voting on their budget from March 2024. Some believe that the 2024 budget will be more difficult to establish due to the increase in energy expenditure and salary reviews for territorial staff. Property owners could thus be impacted by an increase in municipal rates, adding additional pressure to their property tax bill.
