It’s not just the mortgage rate or the cost of borrower insurance that matters! With the disappearance of the housing tax, we would almost forget the other local tax which must be paid by any property owner: the property tax (TF). Often neglected by the buyer of a property, it nevertheless weighs very heavily on the budget, as revealed by a study by Meilleurtaux. The broker has calculated the weight of this tax in twenty major cities in France, for the purchase of a 70 m apartment2. The results are edifying: it is equivalent to a monthly payment of credit, sometimes much more!
€1,260 per year on average in 20 cities
In Nîmes, for example, the buyer will repay 723 euros per month of credit (with a loan over 20 years at 1.85?%, the current average rate over this period), while the TF rises, for this area, at 1,551 euros! Same observation in Saint-Etienne, where the monthly payment is 537 euros, while the TF soars to 1,100 euros. “It’s as if buyers repaid more than 14 months of credit each year instead of 12! “, reacts Maël Bernier, spokesperson for Meilleurtaux. A trend that should not improve: in 2021, according to the Association of Mayors of France, one in three municipalities had planned to raise the property tax! According to Public Finance data, it increased by 2.8% compared to 2020.
In Toulouse and Nantes, the property tax is more reasonable, even if it represents one month of credit repayment. On the podium of the least taxed cities, we find Paris (0.2 monthly payments only), Lyon (0.5) or Nice (0.6).
On average, in the twenty cities studied, the property tax costs 1,260 euros, or 105 euros per month all the same. Taking into account the whole national territory, again according to the statistics of the DGFIP, the owners paid 932 euros on average for a house and 760 euros for an apartment.
