The property tax will increase again in 2025, following the rate of inflation. As a reminder, this taxation is linked to the cadastral values of housing, themselves indexed to inflation. Thus, the property tax experiences an annual increase aligned with the rate of inflation.
Despite a clear slowdown recently observed, the increase in consumer prices still remains relevant. According to recent figures published by INSEE, inflation reached 1.3% in November. Consequently, the property tax will increase by this same percentage in 2025. This rate is relatively moderate compared to that of 2024, which was 3.9%. We have also seen a gradual decline in the increase since 2023, when it reached 7.1%.
Thus, the average amount of property tax, which amounts to 1,074 euros in 2024, will increase to 1,088 euros in 2025, an increase of 14 euros. However, it is important to note that this rate varies depending on the municipality. Municipalities have the possibility of adjusting this tax beyond the national rate. For example, in 2023, the property tax in Paris had increased by 52%, while the national rate stood at 7.1%. These disparities are particularly marked in large metropolises. Remember that each year, 32 million owners across France are subject to this tax.
Who can benefit from a property tax exemption?
Unlike the housing tax, which has been abolished for main residences, the property tax does not provide for any generalized exception. It is due each year by all French owners, regardless of the type of real estate owned. However, partial or total exemptions are possible in certain situations.
For example, owners aged 65 to 75 can benefit from a partial exemption of 100 euros on the amount of this tax. For people over 75, a total exemption is granted.
In addition, owners carrying out energy renovation work on housing built before January 1, 1989 can benefit from a total exemption for three years. For housing renovated or built before January 1, 2009, a five-year exemption is provided.
Finally, it should be noted that this taxation has a greater impact on multi-owners. For example, a person owning three properties will pay on average 3,264 euros in property tax in 2025.
