Property tax: a continuous increase that overwhelms owners... +20% in five years and +33% in ten years

The amount of property taxes paid by owners jumped by 20% on average in France between 2018 and 2023, and by 32,9% since 2013, mainly due to inflation in rental values according to a report published on Tuesday, October 15.

The property tax observatory, which depends on the National Union of Property Owners (UNPI), calculates these figures based on government data for the period 2013-2023 and states that owners are subject to an average property tax rate of 40,36% in 2023, above 40% for the first time.

If this surge is linked to "the abolition of the housing tax on main residences", which has pushed many municipalities to increase property tax levies, and to "the multiplication of additional taxes", it is mainly due to the increase in rental values, which serves as the basis for calculating property tax.

The rental value corresponds to the theoretical annual rent level if a property were rented, and its amount is revalued each year to keep up with inflation.

Rental values have thus increased by 14,8% on average between 2018 and 2023 and account for three-quarters of the increase in property taxes over this period. For the period 2013-2023, rental values account for two-thirds of the increase in property tax.

In detail, Paris shows the biggest increase, among the 50 most populated French cities, in its property tax rate in five years (+71,6% excluding the household waste collection tax), but its rate remains low (21,15% in 2023) compared to other cities.

Nice is, however, the only city among the 50 most populated to have reduced the property tax rate between 2018 and 2023, by 1,4%. But the city in the Alpes-Maritimes will make up for it in 2024 with a 21,7% increase in the property tax rate.

In 2024, the property tax, which must be paid this month, will increase by an average of 4,9% in the 200 largest cities in France, according to tax notices sent by UNPI member owners.

For the UNPI, the increase of almost 33% in property tax over ten years, compared to inflation of 19% and a 7,7% increase in the INSEE residential rental index, constitutes "unfair tax treatment".

In response, the organization is issuing five demands aimed at sharing the cost of these local taxes, limiting their increase and encouraging energy renovation work.

Illustrative image of the article via Depositphotos.com.