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The property tax will increase in 2025, unless the municipal rate decreases significantly. However, taxpayers should not worry too much, since according to information from MoneyVoxthis bad news is accompanied by good news.
Property tax will increase but…
More bad news for the many owners in France. Indeed, as in the last two years, property tax will rise again in 2025.
Remember that in recent years, this local tax has continued to increase. In 2022, it increased by 3.4%. In 2023, it increased significantly, reaching an increase of 7.1%. Finally, in 2024, it increased by 3.9%.
Note that these successive increases were influenced by inflation. Of course, the calculation of the property tax is not directly based on the latter, but it still plays an important role.
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You should know that the calculation of the property tax is based on the cadastral rental value of a property. But also the tax rate set by local authorities.
Except that the rental base depends on the rate of inflation. More precisely, the evolution of the harmonized consumer price index (HICP) between November N-2 and November N-1.
Therefore, when inflation increases, property tax automatically increases. But the good news, as reported MoneyVoxis that this year, inflation has slowed.
As a result, the increase in local tax for 2025 will experience a little moderation. This should reduce the tax burden on owners.
A moderate increase thanks to falling inflation
As explained by our colleagues from MoneyVoxINSEE unveiled final data on inflation for November 2024 on December 13. Data on which the State relies to revalue social benefits, pensions, but also cadastral rental values.
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Thus, according to INSEE, HICP for the month of November is 1,7 %. Which means that the property tax will increase by the same percentage.
So, although the property tax will increase in 2025, the drop in inflation provides some comfort by limiting the impact of this increase. But taxpayers should not rejoice too quickly.
As we have explained, the calculation of the property tax is not limited only to the cadastral rental value. It is also based on the tax rate set by local authorities. In this case the municipality, the intercommunity, the union and the public land establishment.
“They can therefore decide each year to reduce them, to maintain them at the same level as the previous year or to increase them, which has an impact on the amount of your contribution”specifies the tax site.
As a result, even if the property tax increase seems moderate, the tax rates can still make the tax quite expensive.
But sometimes it happens that communities do not increase it. Some even decide to lower it, as 409 municipalities did this year, according to the DGFiP study last September.
According to MoneyVox, “in recent years, a large majority of municipalities have focused on the stability of their rates”.
Source : MoneyVox
