French property taxes set to rise: when will you know the amount?

Homeowners will see their property taxes rise again in 2024 but increases should be lower for most areas than in 2023. Both property taxes, _taxe foncière_ and_ taxe d'habitation_, are

adjusted each year based on the consumer price index and the needs of the local authority, which use the funds raised to finance local services. While_ taxe d’habitation_ is no longer levied

on main homes since January 1, 2023, it still applies to second homes and is subject to no exemptions. READ MORE: WHY DO ONLY SECOND-HOME OWNERS PAY TAXE D’HABITATION IN FRANCE? The main

property tax, _taxe foncière_, is levied on over 30 million properties annually, however there are several reductions and exemptions. Both are considered local taxes, with revenue going

directly to your mairie or intercommunal body to fund local services such as schools, sports facilities and roadworks. Local authorities also add fees for BIN COLLECTION TO THE TAXE

FONCIÈRE. The rates for both of these taxes vary significantly from one commune to another according to the budget requirement and the characteristics of the property. READ ALSO: ‘PAY PER

WHEELIE BIN’ RUBBISH CHARGE SET TO EXPAND ACROSS FRANCE HOW ARE FRENCH PROPERTY TAXES CALCULATED? Both the _taxe foncière_ and the _taxe d’habitation_ (for second homes) are calculated based

on two main factors: _Valeur locative cadastrale_ (VLC) - a theoretical annual rental value for a specific property (for_ taxe foncière_ this is halved), multiplied by A tax rate set by the

local council. For example, if a property’s VLC is €8,000 and the council has a 20% rate, then the_ taxe d’habitation_ bill would be 20% x €4,000 = €800. VLCs are adjusted each year in

relation to the consumer price index. In 2024, they will increase by 3.9%. This means that, unless your local authority lowers its rate, which is unusual, both taxes will rise by at least

3.9%. As to the tax rates for the _taxe foncière _and_ taxe d’habitation_, these are set by local authorities based on their own budget requirements, which they must transmit to the tax

authorities by April 15. In some areas under ‘housing pressure’ local authorities can decide to apply a higher rate to the taxe d’habitation on second homes. Where this applies, the rate can

be 5% to 60% higher. You can check if this applies to the commune of your second home HERE. WHEN WILL I RECEIVE PROPERTY TAXES? The tax authorities typically send out _taxe foncière

_statements by post or email in September. You can consult it in your personal space on IMPOTS.GOUV.FR. Homeowners then have until mid-October to pay the tax bill. _Taxe d’habitation_

statements for second homes are sent in November. Second-home owners then have until mid-December to pay it. Slightly longer is given for payment if paying over the internet, as opposed to

traditional methods such as payment by cheque. Note that the option exists to pay these taxes in advance in 10 instalments, known as mensualisation. They will be based on your previous

year’s tax, and payable from January to October. Then, if your 2024 bill is more than 2023’s you will only have the remainder to pay, in November and December. If you want to choose this for

2024’s local taxes you can do so until June 30, but you will in this case have to make ‘catch-up’ payments in the first three months of payment if you opt for this. WHAT EXEMPTIONS ARE

THERE FOR THE FRENCH PROPERTY TAXES? In 2024, you do not have to pay the _taxe foncière _if you earn less than €12,455. For couples this is €19,107. There are several other reductions and

exemptions linked to factors such as age, disability or renovation work on your property. READ MORE: TAXE FONCIÈRE EXPLAINER: WHO PAYS AND THE EXEMPTIONS While there are no exemptions or

reductions for the _taxe d’habitation_ on second homes, there is a caveat in case the local authority applies a higher rate due to housing pressure. In such cases, you can BE EXEMPT FROM

PAYING THE 5%-60% HIGHER RATE if: * You have to live in your second home due to be near your place of work * You must live in your main home due to care needs, and your former main home has

become a second home * The home is not inhabitable due to a reason beyond your control, such as building work WHERE DID PROPERTY TAXES RISE THE MOST IN 2023? In 2023 the VLCs increased by

7.1%. Communes only increased their own tax rates for _taxe foncière _by an average 1.7% overall. However, in some areas it increased by far more. In Grenoble, the rate increased 25% on top

of the 7.1% VLC rise.The mayor of Grenoble Eric Piolle told _ACTU.FR_that this was in large part due to rising energy costs and inflation. In Paris, the rate for _taxe foncière _increased by

59%. READ MORE: WHICH FRENCH TOWNS OR CITIES HIKED THEIR PROPERTY TAXES THE MOST? Many of the communes that increased their rates in 2023 had been hit by major budget deficits in addition

due to the suppression of the _taxe d’habitation_ on main homes. However, the tax authorities say that 85% of communes kept their 2023 rates for both property taxes the same as in 2022. This

is likely to be the same for the 2024 rates, particularly as many officials start to consider the pending 2026 municipal elections. READ MORE HOMEOWNERS CHALLENGE AUTOMATIC RISE IN FRENCH

PROPERTY TAX - AND WIN LOCAL TAX BILLS SENT IN ERROR TO THOUSANDS OF HOMES IN FRANCE