The 32 million French people owning at least one property on January 1, 2025 will have to pay property tax. As in the two previous years, this should continue to increase, as reported The Net Journal which is based on data published by INSEE on consumer prices.
The calculation of the property tax is established based on several criteria, including the surface area and equipment of the property. Its evolution is linked to the cadastral rental value of your property, that is to say a theoretical annual rent that you could obtain from it if it were rented. This is indexed to inflation for the month of November, calculated by the National Institute of Statistics and Economic Studies (Insee). “Cadastral rental values are revalued each year using a flat rate coefficient which takes into account the harmonized consumer price index (HICP) published by INSEE in the month of November preceding taxation”specifies the tax site.
The municipalities deciding the applicable rates
2023 and 2024 had already been marked by significant increases in the minimum property tax, of 7.1 and 3.9% respectively. Judging by the HICP published by INSEE, property tax will show a minimum increase of 1.7% in 2025.
Read also: 2024 property tax: where is it highest? Where has it increased the most? Here is the ranking
This is just an estimate. The final results from INSEE will be published on December 13, 2024. From these thresholds, the final amount of the tax is voted within each local authority on which you depend (municipality, intercommunity, union, public land establishment). Thus, they have the possibility of applying an increase. In 2023, for example, the municipality of Paris had increased the property tax by 51.9%, in addition to the 7.1% already set.
However, you can benefit from an exemption or reduction from this tax, in certain cases.
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