After a surge last year, this tax paid by tens of millions of French people will increase further in 2024… and the bill will not be the same for everyone.
For two years, everything has increased, from the price of pasta to the price of fuel, and taxes are no exception. The French tax system is quite complex, like those of all industrialized countries, and it is not always easy to navigate. Between income tax, consumption taxes, professional taxation and local direct taxes, it is difficult to know precisely what is increasing or what is decreasing.
This year again, one of the taxes paid by a large part of the population will increase significantly and to a greater or lesser extent depending on the territory: the property tax. This local tax collected for the benefit of local authorities, such as municipalities and intermunicipalities, is due by all owners on French territory and depends on two factors: the cadastral rental value of the building imposed and the tax rates voted by the communities.
The cadastral rental value represents the theoretical annual rent that the property could produce if it were rented, and constitutes the tax base. This value is determined based on the location of the property, its surface area and its qualities. Thus, work to expand and improve a building increases its value and therefore the tax. In addition, the cadastral rental value of all properties is revalued annually according to a flat rate coefficient calculated based on inflation.
For 2024, this automatic revision of cadastral rental values was set at 3.9% ; the amount of property tax for all taxpayers will therefore increase at least in these proportions. But the bill could turn out to be even higher for some owners. Indeed, in addition to the flat rate increase in the tax base, each local authority can vary the property tax rate, upwards or downwards, depending on the needs of its budget. And the increases in this area are sometimes double-digit percentages.
The law requires local authorities to vote their budget in real balance, they may therefore be required to increase the tax rate of the property tax to cover their expenses if other, non-tax revenues do not allow them to achieve the budgetary balance. Communities vote on the property tax rate when adopting their annual budget, no later than April 15 of each year, for tax notices to be sent between August and September.
To find out the rate retained by your municipality for the year 2024, you must consult the deliberation to set the tax rates or that of voting for the Primary Budget or the Supplementary Budget for the financial year, and in particular appendix number IV- D1 or IV-D3, which is at the end of the document and is entitled “Decision on contribution rates”. Most of the time, you can consult municipal deliberations on your municipality’s website, in the appropriate section. And if not, please note that these documents are necessarily available for consultation in your town hall.