Everything You Need to Know About Property Tax!

Property tax bills have been available since September 20 for taxpayers who pay monthly, and are already available for everyone else. Property owners have until October 20 to pay their property taxes online and until October 15 by check.

This local tax applies to any permanent structure that is firmly anchored to the ground. From garden sheds to swimming pools, garages, and, most importantly, residential homes, every square meter of floor space is subject to this annual tax. The calculation, which is reviewed each year, is based on two factors: the assessed rental value and the rate set by the local government.
 

However, not all 33 million French homeowners are required to pay this tax. In 2017, the most recent survey of the number of people subject to this tax, 17 million French people paid property tax. There are many grounds for exemption—such as renovation work—and these may vary depending on local regulations.
 

A 3.9% increase in the assessed value
The assessed rental value is indexed to inflation and adjusted annually. Unless the local government has chosen to lower its tax rates—which remains an exception—property owners will therefore have to pay higher taxes in 2024.
In fact, only 2% of municipalities are choosing to lower their tax rates this year, while 82.1% are deciding to maintain the rates applied in 2023.
 

This year, 16.7% of municipalities chose to implement an increase—mostly minimal: in 75% of cases, the increase was less than 2%. For 2023, however, the average rate increase was 2.9%, according to the General Directorate of Public Finance (DGFIP). Some cities had raised their tax rates very sharply (+52% in Paris, +25% in Grenoble, +14.3% in Metz, +10% in Limoges, and +9% in Lyon).
 

In total, these increases affect 14% of the population subject to property tax. The increases are more prevalent in villages and small towns with fewer than 3,500 residents. The municipal tax rate is rising for 20% of the residents in these municipalities.
 

An average of 679 euros per residence
Nationwide, property tax generates 50.8 billion euros annually. Single-homeowners are taxed an average of 679 euros per year, with a notable difference between houses and apartments, which are taxed at a lower rate due to their generally smaller average size.
It should be noted that one in ten homeowners owns at least three properties and pays an average total property tax of 3,889 euros. Furthermore, 20% of homeowners own two properties, paying an average tax of 1,264 euros per year in 2023, according to data from the DGFIP.
 

Last year, the National Union of Property Owners reported a 26.1% increase in property tax over 10 years. When we factor in this year’s 3.9% increase in the assessed rental value and a slight rise in the rates set by local governments, we can calculate that, over 10 years, property tax has increased by nearly 30% nationwide. Currently, the average rate applied is 35% of the assessed rental value, which is the theoretical annual rent the property would command if it were rented out.