Many households are exempt from housing tax in 2021 … but not all. Will you receive a tax notice in your mailbox in October?
The housing tax is a local tax, collected by the State on behalf of municipalities and inter-municipal authorities, in order to finance municipal expenditure and infrastructure: nurseries, schools, sports and cultural facilities, roads, etc. This tax is criticized as being unfair because it does not take into account the income of resident households, but the area of their housing. In addition, different depending on the municipality, it is based on a cadastral value of housing which is difficult to update.
The government therefore abolished this tax for a large part of the population, in addition to the most precarious people who did not pay it. Today, more than 80% of households are exempt from it for their main residence. Are you part of the remaining 20%, who will have to pay it? the government has set up a simulator, following the 2021 reform.
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So who will receive a council tax notice between October 1 and October 20? You will have to pay a tax if your Tax Reference Income (RFR) for 2020 is above the following ceilings, defined by the government: € 27.761 for 1 share; € 35.986 for 1.5 parts; € 44.211 for 2 shares; € 50.380 for 2.5 shares; € 56.549 for 3 shares; € 62.718 for 3.5 shares. Those who are just above the ceilings mentioned will be able to benefit from a 30% reduction in their housing tax in 2021.