Property tax will further increase in many cities in France in 2024. This is what emerges from the study carried out by FSL, a firm specializing in financial information for local authorities. The latter had until April 15 to communicate their property tax rates to the tax authorities, reports The Parisian.
It turns out that 14% of cities with more than 100,000 inhabitants and almost 9% of cities with between 40,000 and 100,000 inhabitants opted for an increase. For some, the increase is significant: +19.2% in Nice, +16.3% in Saint-Priest, +15% in Saint-Étienne or even +14.5% in Nancy.
A revalued rental base
The fact remains that in reality, property taxes will increase for everyone. It is in fact calculated using a rental base multiplied by a rate. If the rate is defined by local authorities, the rental bases are the responsibility of the government and are indexed to the harmonized consumer price index (HICP), explains The Parisian.
This year, the rental bases will therefore be increased by 3.9%, an exceptional increase but much lower than that of 2023 (7.1%). For the 33 million French people who own real estate, the property tax will therefore increase by 3.9%, sometimes a little less but often much more.
Some municipalities (Brive, Castres and Mantes-la-Jolie) have indeed voted to reduce the rate of property tax, but this is not enough to offset the increase in the rental base. The most impacted will be owners whose property is located in a community where the rate is exploding this year. In 2023, the property tax brought in 50.8 billion euros for the State.
