Good and bad news for your 2024 property tax. The bad: the property tax will increase again in 2024, unless your municipality decides to very significantly reduce its tax rate. The good surprise: the more limited inflation than expected in November will temper the revaluation of the tax bases for property taxes. Instead of +7.1% in 2023, it will be 3.8% next year.
The pleasant surprise is to be taken with a grain of salt: for the moment, this is only provisional data from INSEE. But since the institute reveals its provisional inflation data each month, around fifteen days in advance of its final publication, the provisional percentages have rarely been contradicted, or only very marginally. However, INSEE revealed this Thursday, November 30, inflation figures rather encouraging, with a slowdown in price increases in France, 3.4% in November… while INSEE anticipated inflation of 3.9% for the month of November a few weeks ago.
Certain INSEE indicators have direct impacts on household portfolios, because the State relies on these reference indices to revalue social benefits, pensions, the income tax scale, the mileage scale , the minimum wage… and the cadastral rental values or VLC which serve as the tax base for your property tax.
And for the annual revaluation of VLC, it has been for several years the harmonized consumer price index (HICP) for the month of November which is used to set the revaluation for the following year. Last year, the HICP jumped 7.1% in October and November 2022, mechanically causing the general increase of more than 7% in property tax in 2023.
Land tax: the truth from the false on the maddening 2023 increase
Land tax: towards an increase in bases of 3.8% in 2024
In November 2023, the HICP remains high. But 3.8%, according to provisional data from INSEE, the increase in this indicator is on the one hand limited compared to INSEE forecasts a few weeks ago, and on the other hand limited compared to 4.5 % of October 2023.
Therefore, the increase in tax bases for local taxes should most likely be limited to 3.8% in 2024, a rate that is still high but almost half as much as in 2023. A good surprise, certainly very relative, since property taxes will increase further. But the flame will be limited. And increases in municipal and intermunicipal rates should become increasingly rare as the 2026 municipal elections approach.
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