Property tax is increasing everywhere. Not only because your municipality has voted an increased rate but also because the basis for calculating this local tax follows inflation, mechanically. Explanations.
For half of the owners, the suspense is over: the 2023 property tax notice is already in the mailbox or in the personal space on impots.gouv.fr. Only taxpayers who have opted for the monthly payment still have to wait to find out the 2023 bill. This first salvo of opinions has triggered the season of soups with grimaces, as evidenced by the still frenzied debates in Paris. However, the year is special and in most cities, the increase in your property tax is not entirely attributable to your municipality. It all depends on your rate…
+7.1%, minimum rate
This rate does not appear on your property tax notice. +7.1% is the national increase in cadastral rental values (VLC), the basis of calculation for all local taxes, your VLC being supposed to represent the value of your apartment or house if it were rented. Indexed to inflation (the HICP, harmonized consumer price index, stopped in November for this annual update), the 2023 revaluation is twice as high as in 2022: 7.1% against 3.4% last yearwhich was already a strong national increase.
On your 2023 property tax notice, the second page, the base appearing under your address has theoretically increased by 7.1% compared to your 2022 notice. In about 85% of cases, according to public data from the General Directorate of Public Finances , the increase in your property tax is solely due to this revaluation of 7.1%.
Where to check the rising vote in your municipality?
I call on communities not to blow up their local tax rates. Not to crack all the efforts that are made to protect the purchasing power of the French. Communities can lower their municipal rates at all. A number of mayors have announced that they will. This exit is to the credit of Gabriel Attal, who was still Minister in charge of Public Accounts in the fall of 2022. He then explained why Bercy was not in favor of a ceiling on the increase in rental values, 3.5% instead of 7.1%, as had been proposed by deputies in the Finance Committee.
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Almost a year later, less than 3% of municipalities – again according to DGFiP data – have lowered their municipal rate. A very large majority kept their rate unchanged. And so 14% of municipalities have chosen to increase the municipal rateincluding Meudon (+35.1%), Bobigny (+18.5%) or Troyes (+14.4%), among others.
To check what your municipality has decided, go to page 2 of your 2023 notice, new. Above your address, opposite rate 2022 And rate 2023, you can check whether the municipal rate has changed. On the same line, you can also see the evolution of intermunicipal rates or your household waste tax.
Final check to gauge your municipality’s decision: aim for the 2022 contribution and the membership fee 2023 the common column… and the variation just below. The variation is very slightly higher than 7%? The increase in your local tax is due to the national increase. Your variation is much higher? It is a municipal decision.
Property tax: after soaring in 2023, a further increase is expected in 2024