A system for canceling or reducing property tax exists when you find yourself unemployed.
It has just arrived in mailboxes and mailboxes and it hurts. Very bad even in the wallet. The General Directorate of Public Finances (DGFiP) has sent the traditional property tax notice to 32 million French people, this tax that all owners must pay each year on their property(ies). A painful bill for the wallet since it has further increased, at least, by almost 4% in 2024, when it is not much more in several municipalities.
And who says tax says compulsory payment. Or almost. It is a little-known system but it is possible to ask the tax authorities to totally or partially cancel your debt due to a particular situation, in particular unemployment.
There is in fact an exemption or reduction in property tax for owners who find themselves unemployed overnight. To do this, you must request a free appeal from the tax authorities, explaining your situation. The Public Treasury – which has two months to respond to the request – plans to be conciliatory in the event of “unforeseeable loss of income”, clearly mentioning unemployment as the reason.
However, being unemployed is not enough to be exempt from property tax. The loss of employment must be sudden and truly put the taxpayer in difficulty. To assess the urgency of the situation and the financial complications resulting from the absence of work, the tax authorities examine the finances of the person requesting the cancellation or reduction of the property tax.
His income, his assets, his restricted expenses or even his regularity in the payment of previous taxes are scrutinized. However, no income or asset ceiling is established to validate or refute the request because “the assessment of situations always depends on an individual approach”, explains the Tax, Customs and Foreign Exchange Litigation Committee (CCFDC).
Even if the tax authorities agree to examine the request, the taxpayer is forced to pay the property tax, under penalty of penalties. It is only after study of the file and final decision by the administration that it can proceed with reimbursement. In 2022 (latest up-to-date data), in total (all reasons combined), 19,408 people obtained discounts on property tax.