PROPERTY TAX 2023. The property tax will be higher in 2023. While the payment date is scheduled in a few weeks, here is how to calculate its amount.
This is (yet another) painful back-to-school: property tax. Owners will soon have to check out and pay money to the state for the properties they own. An amount that varies depending on the city and whose method of calculation is complex. But one thing is certain: in 2023, the bill will increase, and considerably! +7.1%, minimum. But in certain cities, notably Paris, the amount will soar even more: beyond the base raised by the State, the rates voted by certain communities are rising sharply (read the method of calculation below). Very bad news for property owners. On what date will it be necessary to send this new check to the tax authorities? Explanations.
The property tax is a tax payable by the owners. It can be an individual, a company or a legal person. Please note that two types of properties are subject to this tax. Built properties : these are essentially residential premises, building floors, car parks and land forming an essential and immediate dependency on these constructions. Then, unbuilt properties (ponds, salt marshes, mines…). Here, the tax is due by the owner or usufructuary: right to use a property and to receive rental income, without being able to dispose of it, in particular the sale of land, on January 1 of the tax year . It is collected by the local authority (municipality or EPCI, EPCI, Public establishment for inter-municipal cooperation with own taxation), on the territory of which the land is located. There are permanent or temporary exemptions (under conditions).
The General Directorate of Public Finances has already planned the schedule for the property tax. The dates for sending notices (postal or digital) as well as those for payment have been set by the DGFiP. They differ depending on the method of payment chosen by the owner:
- Between August 23 and September 26 : receipt of the property tax notice by post, if this was the choice of the non-monthly taxpayer
- August 30, 2023 : posting of the property tax notice for non-monthly taxpayers
- Between September 18 and October 6 : receipt of the property tax notice by post, if this has been the choice of the monthly taxpayer
- September 22, 2023 : posting of the property tax notice for monthly taxpayers
- October 16, 2023 : deadline for payment by mail
- October 21, 2023 : deadline for online payment
A piece of advice, pay your dues without delay. In case of late payment, you expose yourself to a 10% increase in the amount of local tax. “The penalty applies if you have not paid your tax within 45 days of the collection date,” it says on public service website.
Note that it is quite possible to monthly pay your local taxes, including property tax. Be careful however, for this, it is necessary to have a bank account or a booklet A, domiciled in France or at monaco. You have the possibility of monthly payment of your property tax until June 30th for the payment of your local taxes of the’current year. Remember that the monthly payment is only valid for the following year. The tax for the current year must be paid via a other means of payment.
The property tax is calculated from the theoretical annual rent (rental value) that the property concerned could produce if it were rented. This amount is reduced by 50% (called cadastral income). The result serves as the basis for calculating the property tax. This base is calculated from rental market conditions in… 1970 and takes into account around ten criteria!
Given the age of the formula, the government has been catching up since 2018. This base has been increasing since each year compared to the consumer price index indicated in the month of November preceding the taxation. In 2023, the increase in the base is therefore calculated on the annual price increase recorded in November 2022. This is not the amount to be paid.
The tax to be paid takes into account other parameters. In France, the owner only pays property tax to one body: the tax authorities. However, several administrations and services share the amount: the city and theintermunicipality. A part is also used to pay for road works planned by the region, the removal of household waste, as well as the management of aquatic environments and flood prevention (GEMAPI).
Each year, each of these bodies votes on a levy rate for the property tax due to it. Thus, it is necessary to multiply the base with each rate decided and to add up the results obtained to obtain the amount of the property tax. Finally, we must add the costs of managing local taxation collected by the State.
- Rental value estimated by the State: 5000€
- Cadastral income: €2,500 (€5,000 reduced by 50%)
- Municipal rate: 25%, i.e. €625 (25% of €2,500)
- Intermunicipal rate: 5%, i.e. €125 (5% of €2,500)
- Special taxes: 0.5%, i.e. €12.5 (0.5% of €2,500)
- Household waste collection tax: 5%, i.e. €125 (5% of €2,500)
- GEMAPI tax : 1%, i.e. €25 (1% of €2,500).
- Total amount of property tax: €912.50
All the administrative strata therefore play a role in the amount to be paid for property tax, from the municipality to the State.
Given the complexity of the rental value calculation method, there is no online simulator. On the other hand, it is possible to get an idea of the amount to be paid by first taking into account the mechanical increase in the rental value defined from the consumer price index in November 2022 (see this table). It is also necessary to take into account the possible increase in the rates applied by the city and/or the intercommunality according to the method of calculation explained previously. Generally, this data is accessible on the site of its town hall.
Example 1 : increase only from the base
* Excluding tax management fees.
Example 1 : increase in base and rates in 2023 (Grenoble)
* Excluding tax management fees
Almost all property owners are liable for property tax. However, a few exceptions exist and allow you to obtain an exemption. For a total exemption as a taxpayer, several situations exist. Be a beneficiary of the AAH, be over 75 on January 1 of the tax year, or finally, be a holder ofASPA or UPS. For the exemption relating to goods, new housing is concerned for a period of 2 years. Old housing that have been the subject of work with the aim of achieving energy savings can benefit from an exemption from property tax during 5 years. Finally, new constructions for use as a main residence financed at 50% by loans subsidized by the State benefit from an exemption from 10 years.
Keep in mind that your reference tax income must not exceed a certain threshold. You must also respect so-called cohabitation conditions, explained here. As reminded The particularthe exemption does not apply to the tax for the removal of household waste (TEOM), appearing on your tax notice. What about property? Any new construction or addition of construction allows you to benefit from an exemption from property tax for 2 years from 1 January of the year following the end of the work.
In detail, you must make a declaration to your public finance center within 90 days after the end of the work. As a reminder, this is the H1 declaration for a house and H2 for an apartment. Rural buildings for agricultural use are not concerned property tax. Be aware that some communities allow you not to be subject to property tax. This is the case if your home is energy efficient and you have carried out work in this direction (which may give rise to partial or total exemption for 5 years) or if it is exposed to particular risks, for example . To find out about the property tax exemptions specific to your municipality, you should inquire with its public finance centre.
If you are over 65 and under 75 on 1 January of the tax year, you can benefit from an automatic property tax relief and thus benefit from a reduction of 100 euros . Please note that your reference tax income must not exceed a threshold. The relief is automatically applied by the tax authorities. Subject to income conditions, a taxpayer liable for property tax can benefit from a ceiling.
“This device allows the taxpayers concerned to benefit from a reduction in their property tax contribution of more than 50% of their income”, specifies Bercy on its site. You must send a request for a ceiling, by completing form n°2041-DPTF-SD, here. Note that it is also possible to obtain a reduction in property tax if your property, apartment or house, is unoccupied. Attention, you will need to provide supporting documents to the tax authorities