Property tax increase should be moderate in 2024

Property tax increase should be moderate in 2024
Property tax increase should be moderate in 2024

After significant increases in 2023, many cities are maintaining their rates this year or increasing them more reasonably, notes the annual survey by the FSL firm.

After significant increases in 2023, the property tax should increase less this year. Large cities – more than 100,000 inhabitants – and their groups have decided to increase their property tax by 1.2% on average this year, and more of them than in 2023 will keep their rate unchanged, according to the annual survey. from the FSL firm. And towns with 40,000 to 100,000 inhabitants are even more reasonable this year, according to the study published this week, which compiles the decisions of communities every spring.

A slight relief to come compared to increases felt to be strong in 2023, particularly in Paris where the rate suddenly rose from 13.5% to 20.5%, an increase of 52%. Despite this massive increase, Paris still has the second lowest rate among large cities, after Boulogne-Billancourt (15.09%).

+0.6% in medium-sized cities

For their part, Angers, Caen, Dijon, Le Havre, Montpellier and Nîmes have rates above 50%, with a record of 65.79% for Grenoble. None of these cities increased their rates this year. In total, 34 large cities out of 42 (81%) maintained their rates in 2024, notes FSL, after 76% in 2023 and 69% in 2022. Excluding Paris, the average increase is 1.6% after 1.7% last year. Including Paris, the increase reached a record 10.9% last year. This year, the most gourmet cities are Nice (+19.2%), Saint-Étienne (+15%), Nancy (+14.5%), Annecy (+14.1%) and Villeurbanne (+10% ).

In the 154 towns of 40,000 to 100,000 inhabitants, the property tax rate “evolves very moderately”FSL rating, +0.6% on average, after +1.3% in 2023, +0.9% in 2022, +0.8% in 2021 and +0.4% in 2020. One hundred and thirty-one of these cities, or 85%, maintained their rate in 2024, 18 increased it (12%) and 5 decreased it.

However, taxpayers having to pay property tax will all experience an increase of 3.9% this year, even in municipalities which have not increased their rate. Regardless of local decisions, the tax is in fact increased each year by the annual amount of inflation. The calculation is carried out in November preceding the tax year, taking into account the European harmonized consumer price index (HICP), generally close to the national index. With the decline in inflation, this year’s 3.9% is however far from the 7.1% increase in 2023, and the increase is expected to reduce further in 2025.

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