Since 2018, the well-known ISF has been transformed into IFI, a wealth tax refocused on real estate assets only. Who pays for it? Are taxable persons on the rise again? What is the average amount? Figured responses from the General Directorate of Public Finances.
Rising. 175,980 households subject to the IFI
In 2017, no less than 356,000 households paid the ISF. The reform of the first of Emmanuel Macron’s governments came into force in 2018. As a result, by excluding financial assets to refocus solely on real estate holdings, the number of taxed households was almost divided by three, 133,000 taxable households in 2018 . Since then, the number of households has increased each year, up to 175,980 households subject to the IFI in 2023 according to data revealed this Tuesday, April 23 by the DGFiP, compared to 164,000 last year.
How to explain this clear increase in 2023? The appearance of new households subject to IFI tax is partly linked to the fact that the IFI tax threshold has not increased in a context of rising property prices (the housing price index of INSEE increased by 2.9% on average between the first quarters of 2022 and 2023), we read in the DGFiP publication. Thus, the number of households entering the IFI in 2023 (29,700) has largely exceeded that of leaving (17,600). But entrants generally have lower average assets than exiters.
Rising. 430,000 taxable persons in Paris alone
The Paris region, the Atlantic and Mediterranean coasts, and the Alps. Here is where the greatest number of households subject to real estate wealth tax are concentrated. But department number 1 is Paris, and by a long way! A quarter of the subject households, or 43,000 households (compared to 41,500 households last year), reside in the capital. Next on the podium are Hauts-de-Seine and then Yvelines. In 4th position? there are 7,500 households residing abroad which represent 4% of households in the IFI.
This concentration around Paris does not only result from the large population of the Paris metropolitan area: almost 3% of households subject to income tax are subject to the Paris IFI, the highest proportion in France.
Falling. 11100euros, average IFI
The average IFI amount paid by taxable households amounts to nearly 11,100 euros in 2023 compared to 11,200 euros in 2022, a drop of 1.1%. A drop in the average amount mainly due to the increase in the number of households subject to the IFI, with lower assets. The previous year, the average amount had increased.
Falling. 151,000 euros on average, for the 2,000 wealthiest households
The 2000 wealthiest households have real estate assets of more than 10 million euros. For the latter, the average amount of IFI amounts to 151,000 euros in 2023 (compared to 160,000 euros in 2022), we read in the statistical publication of the DGFiP.
Stable. 70 years on average
IFI households are older than those declaring income tax only. Thus, the average age of the reference person for households subject to income tax is 53 years. And for households subject to the IFI? 70 years. An average which has not changed in one year.