Property Tax: This Little-Known Trick to Avoid It
Since 2007, several municipalities have implemented a partial or total property tax exemption ranging from 50% to 100% for homeowners who have undertaken energy-efficiency renovations on their homes.
According to the National Property Tax Observatory, property taxes rose by an average of 32.9% between 2013 and 2023, with record increases in certain cities, including Paris (+83%). In 2024, this tax increased by an average of 3.9% across France. While this increase once again impacts homeowners’ purchasing power, many of them are unaware that they may be eligible for an exemption.
In fact, since 2007, several municipalities have implemented a partial or total exemption ranging from 50% to 100% of the property tax for homeowners who have undertaken energy-efficiency renovations in their homes.
This measure applies to both primary residences and second homes and takes effect the year following the completion of the work, for a period of up to 5 years. However, the same home cannot qualify for this exemption until ten years have passed since the first exemption was granted.
Eligibility requirements are defined at the national level:
- be the owner of the property
- the property must have been built before 1989
- to have completed €10,000 worth of eligible work during the year preceding the first year the exemption applies, or €15,000 over the three years preceding the first year the exemption applies. The amount excludes labor costs and includes all taxes.
Ithaque, a specialist in energy-efficient renovations, has run simulations to estimate what this exemption would amount to in Paris, Nantes, and Chambéry for a 92-square-meter apartment.
Chambéry
• Reference rate: 13 €/m²
• Property tax rate: 46.46%
Calculation:
1. Annual cadastral rental value: 92 m² x 13 €/m² x 12 months = 14,352 €
2. Cadastral income after a 50% deduction: 14,352 € ÷ 2 = 7,176 €
3. Property tax without exemption: 7,176 € x 46.46% = 3,334.71 €
Case: Renovated older home (50% exemption over 3 years)
1. Property tax after exemption (50% of the municipal portion, estimated at 20% of the total rate): €3,334.71 – €666.65 = €2,668.06 per year
Savings over 3 years: €1,999.95
Nantes
• Reference rate: 16.9 €/m²
• Property tax rate: 46.34%
Calculation:
1. Annual cadastral rental value: 92 m² × 16.9 €/m² × 12 months = 18,657.6 €
2. Cadastral income after a 50% deduction: €18,657.6 ÷ 2 = €9,328.8
3. Property tax without exemption: €9,328.8 x 46.34% = €4,325.92
Case: Renovated older home (50% exemption over 3 years)
• Annual tax after exemption: €2,162.96
Savings over 3 years: €6,488.88
Paris
• Reference rate: €12.9/m²
• Property tax rate: 20.5%
Calculation:
1. Annual assessed rental value: 92 m² × 12.9 €/m² × 12 months = 14,241.6 €
2. Assessed income after a 50% deduction: 14,241.6 € ÷ 2 = 7,120.8 €
3. Property tax without exemption: €7,120.8 x 20.5% = €1,460.77
Case: Renovated older home (100% exemption over 3 years)
• Property tax after exemption: €0
Savings over 3 years: €4,382.31
