A general reassessment of the property tax
In 2024, property tax will see a further increase in many French cities, according to a study by the FSL firm, specializing in financial information for local authorities. This increase concerns 14% of towns with more than 100,000 inhabitants and almost 9% of towns with between 40,000 and 100,000 inhabitants. The figures reveal significant increases, notably +19.2% in Nice, +16.3% in Saint-Priest, +15% in Saint-Étienne and +14.5% in Nancy.
The property tax, calculated on the rental basis multiplied by a rate determined by local authorities, is undergoing an exceptional revaluation this year. The rental base, indexed to the harmonized consumer price index (HICP), will increase by 3.9%, an increase although lower than that of 2023 (7.1%), remains significant for the 33 million French owners.
Impact of increases on owners
The revaluation of the rental base will lead to a general increase in property tax of 3.9%, with variations depending on the municipality.. Although certain cities such as Brive, Castres or Mantes-la-Jolie have voted to reduce the property tax rate, this reduction does not compensate for the increase in the rental base. As a result, property owners located in communities that voted for higher rates will see their property taxes rise significantly.
In 2023, the property tax generated 50.8 billion euros in revenue for the State. This Source of income remains essential for local authorities, despite recurring criticism from property owners in the face of continued increases. This situation raises questions about the sustainability of these increases and their long-term impact on the French real estate market.
The role of local communities and government
Local governments play a key role in determining property tax rates. However, the revaluation of rental bases by the government directly influences the amounts paid by owners. This interaction between local decisions and national adjustments highlights the complexity of the French property tax system.
Le Parisien reports that local authorities had until April 15 to communicate their rates to the tax authorities. These decisions, combined with the national reassessment, create an ever-changing tax landscape for property owners. Future adjustments will have to take into account the balance between the financing needs of local authorities and the capacity of owners to bear increasing tax burdens.
Outlook for owners and communities
Faced with this situation, owners must prepare for an increase in their property taxes. Understanding calculation mechanisms and local decisions is essential to anticipate tax developments. Local authorities, for their part, will have to justify these increases to their constituents and consider measures to reduce the tax pressure on the owners most affected..
It also highlights the importance of increased transparency in the communication of tax decisions and balanced management of local resources.
