As municipal elections approach, property tax increases little in France

Property tax will increase by only 1,7% on average in 2025 in the 200 largest French cities, according to a report published Wednesday, October 15, by the National Observatory of Property Taxes, which sees a link with the 2026 municipal elections.

This increase is entirely due to the annual revaluation of the tax calculation base - the rental value - which is indexed to inflation. The property tax rate decided by the municipalities is almost stable compared to 2024 (+0,04%).

"We already saw this phenomenon in 2019 with a 0,7% drop in the property tax rate," in the run-up to the 2020 municipal elections, noted Frédéric Zumbiehl, a lawyer with the National Union of Property Owners (UNPI), which oversees the Observatory, during a press conference.

In ten years, this tax paid by property owners has increased by 37,3%, between 2014 and 2024, with an acceleration from 2018 due to the indexation of rental value on inflation and no longer on a coefficient defined according to the evolution of rents.

Between 2019 and 2024, this tax calculation base, corresponding to approximately six months of rent, was increased by 16,7%, which represents three-quarters of the total 22,6% increase in property tax over the period.

Among the 50 largest French cities, Paris remains the one that saw the largest increase in property tax between 2014 and 2024: +87,9%. However, its property tax rate, at 21,2%, is the third lowest in the panel.

On average in 2024, municipalities have set their property tax rate at 40,7%, which is equivalent to approximately 2,4 months of rent.

"Property tax is becoming an issue and constitutes a factor of arbitration when it comes to buying property. Going from 1.000 to 3.000 euros in property tax reduces monthly income," stressed Sylvain Grataloup, president of the UNPI.

The UNPI has looked at the "various influences" on property tax and notes that its rate tends to be higher in more populated towns, in indebted municipalities, or those with a significant proportion of landlord owners.

The abolition of the housing tax has also tended to push communities to increase property tax, particularly when their population has increased.

Illustrative image of the article via Depositphotos.com.