France: Shock increase in property tax in 20% of municipalities

The 2024 property tax is coming, and owners are discovering a new increase. With a minimum increase of 3.9%, French municipalities are readjusting their local taxation.

The 2024 property tax increase: a reality for owners

In 2024, the property tax will see a significant increase that will not go unnoticed. With a minimum of 3.9% increasethis measure results from the adjustment of cadastral rental values ​​to take into account inflation.

This taxable base is used to calculate the amount of the tax. Its value has been reassessed this year. As highlighted by the General Directorate of Public Finances (DGFiP) :

“Between 2023 and 2024, municipalities have largely renewed their local direct tax rates”.

For 14.1% of the population, the property tax on built properties (TFPB) has therefore increased. A trend that is particularly marked in small municipalities! In localities with fewer than 10,000 inhabitantsthis increase affects 20.5% of residents. Which increases the tax pressure on owners of real estate located in these areas.

Important note:

This progression is not uniform. Each municipality has voted for its own tax rate. Which explains the disparities in property tax from one region to another. Local public services, largely financed by this tax, therefore see their budget strengthened. But this translates into an additional cost for taxpayers.

The impact of the increase on real estate investments in 2024

For real estate investors, the property tax increase in 2024 poses a real challenge. With a minimum increase of 3.9%, this new charge could indeed reduce the net returns of rental properties.

The payment deadline is set for Sunday, October 20, 2024 for online payment. For those who prefer to use other payment methods, the deadline is Tuesday, October 15.

Beyond its direct impact on owners, the increase in property tax reflects a broader reality: the tax pressure on real estate.