Property tax: who are the French people exempt in 2023?

To benefit from the property tax exemption, you must meet a few criteria. We will tell you about it in the next lines.

In 2023, certain categories of the population may be subject to exemption from property tax . However, they must meet certain criteria in order not to have to pay this tax . The latter is intended for homeowners.

Exemption conditions

The 2023 finance bill, passed in 2022, brought several changes , in particular with regard to the exemption from property tax. All property owners must pay this tax in October . That said, there are several cases where this tax can be exempted .

According to the Public Service website, you can be exempt from property tax Yeah :

• You are a beneficiary of the Disabled Adult Allowance (AAH). There is a means test.
• You are over 75 years old respecting a certain condition of resources . This with a possibility of receiving a new exemption for their secondary accommodation.
• You are the holder of the Aspa, solidarity allowance for the elderly, without a single means test .
• You are the holder of the ASI, supplementary disability allowance, without a single means test .

If you are in a couple and you are married, only one member of your couple must meet the age or disability criteria . In doing so, it should be emphasized that the property must belong to the person with a disability. Otherwise, he must belong to the marital community .

Property tax: No procedure to follow

Regarding the conditions linked to resources, you must have a taxable income below a certain ceiling . Thus, one can benefit from the exemption from property tax.

In 2023, the revenue cap is equal to 11,885 euros for the first part , then at 3,174 euros per additional half-share. Note that this income ceiling depends on the family quotient.

If these conditions must be met benefit from the property tax exemption , however, there is no procedure to follow. Normally, if the criteria are met, the exemption is automatic.

Property tax: An increase in 2023

It is worth pointing out that in 2023, the property tax will increase by 7% . This is an increase provided for in the finance bill for 2023, which parliamentarians adopted in fall 2022 .

That being so, these tabled an amendment in the initial version of this law to regulate the evolution of this tax. It is also to ensure that this development no longer follows inflation .

Note that inflation has been steadily rising for years . In doing so, the government did not retain this amendment which was to limit the increase in the property tax. An amendment that was to peak at 3.5% in 2023 .

In 2021 and 2022, rental values increased by 0.2% and 3.4% respectively . And if we are to believe the DGFiP, they will go up again this year. And since we are in a period of inflation, this revaluation will be significant .

Over one year, consumer prices rose 6%. Therefore, specialists bet on a 6 to 7% increase in property tax . This increase should concern 34 million taxpayers.

In the hemicycle, they justified this reversal by a drop in tax revenue for local authorities . Revenues already put to the test by the disappearance of the housing tax.

That being the case, the municipalities may cap the increase at 3.5% . The increase in their charges should, however, lead to a further increase in the rates voted by the communities next year.

Several municipalities have also already announced their intention to raise the tax rate property tax. Paris, Lyon and Grenoble are among them.

Types of property tax

As a reminder, property tax is a tax that owners of taxable real estate have to pay every year . There are two types of property tax:

• The property tax on built properties (TFPB).
• The property tax on unbuilt properties (TFPNB).

The property tax is established according to its situation on January 1 of the year and it is due in October . Barring exceptions, empty dwellings are also subject to property tax. Property taxes are part of the tax category of local taxes . The one used to finance the budget of municipalities, communities of municipalities and departments.

Source : C news