The dynamic observed in previous years continues. In 2023, nearly 176,000 households paid the real estate wealth tax (IFI), for a total amount of 1.9 billion euros.
Figures up respectively 7.3% and 6.5% compared to 2022, according to the data published by the general directorate of public finances (DGFIP), on April 23, as the deadline for the 2024 IFI declaration approaches for the taxpayers concerned – the deadlines, end of May or beginning of June, depending on the departments, are the same as for the income tax declaration. The average amount paid is down slightly, to 11,100 euros (−1.1%).
The IFI, which replaced the wealth solidarity tax (ISF) in 2018, applies exclusively to real estate assets. It concerns households with real estate assets (houses, apartments, outbuildings, indirectly held real estate, etc.) exceeding 1.3 million euros net, where its predecessor also targeted financial investments and movable property ( like jewelry). The main residence, however, benefits from a reduction of 30% of its estimated value.
If the replacement of the ISF by the IFI, the flagship measure of Emmanuel Macron’s program for the 2017 presidential election, intended in particular to redirect savings towards the financing of businesses and stem tax exile, it was reflected in a significant drop in the number of taxed households – the DGFIP recorded nearly 360,000 tax households in 2017, the last year of existence of the ISF (for more than 5 billion euros in tax revenue).
70 years on average
In 2023, the taxpayer subject to the IFI is on average 70 years old, and almost 70% of “IFI households” are in the age group of 65 or over – this is the age of the “first filer” of the household which is taken into account. The first tax bracket, made up of taxable assets of between 1.3 million and 2.5 million euros, includes almost three quarters of households having paid the IFI. With an average tax of 5,212 euros, this bracket accounts for 32% of tax revenue from this tax.
At the other end of the spectrum, 1% of IFI households have assets greater than 10 million euros; they paid on average 151,000 euros of IFI in 2023 (compared to 160,000 euros in 2022) and contribute, up to 14%, to the total IFI collected by the State.
The DGFIP, however, notes an increase in the number of households belonging to the “median” brackets (between 2.5 million euros and 10 million euros of net taxable wealth). This contributed to the overall increase in revenues linked to this system.
You have 37.25% of this article left to read. The rest is reserved for subscribers.