France: Shock Increase In Property Tax In 20% Of Municipalities

The property tax 2024 is coming, and homeowners are discovering a new increase. With a minimum increase of 3.9%, French municipalities are readjusting their local taxation.

#Impôts | 💡 Comment est calculée votre taxe foncière 2024 ?

➡️Votre taxe foncière est basée sur la valeur locative cadastrale de votre bien, multipliée par les taux d’imposition de vos collectivités locales.

💻 Pour plus d’infos ➡️ https://t.co/eW9llxVoJ0 pic.twitter.com/w1ONo1p0CC

— Direction générale des Finances publiques (@dgfip_officiel) August 29, 2024

The increase in property tax 2024: a reality for homeowners

In 2024, the property tax experiences a significant increase that does not go unnoticed. With a minimum increase of 3.9%, this measure stems from the adjustment of cadastral rental values to account for inflation.

This taxable base is used to calculate the amount of the tax. It sees its value reevaluated this year. As highlighted by the General Directorate of Public Finances (DGFiP):

“Between 2023 and 2024, municipalities largely maintained their local direct tax rates”.

For 14.1% of the population, the property tax on built properties (TFPB) has therefore increased. A trend particularly marked in small municipalities! In localities with less than 10,000 inhabitants, this increase affects 20.5% of the residents. This accentuates the tax pressure on property owners in these areas.

Important note:

This progression is not homogeneous. Each municipality has voted its own tax rate, which explains the disparities in property tax from one region to another. Local public services, largely financed by this tax, therefore see their budget strengthened, but this translates to an additional cost for taxpayers.

The impact of the increase on real estate investments in 2024

For real estate investors, the increase in property tax in 2024 poses a real challenge. With a minimum increase of 3.9%, this new burden could indeed reduce the net returns of rental properties.

The deadline for payment is set for Sunday, October 20, 2024 for online payment. For those who prefer to use other payment methods, the deadline is Tuesday, October 15.

Beyond its direct impact on homeowners, the increase in property tax reflects a broader reality: the tax pressure on real estate.