Changes to the taxe d’habitation: now and next year

While the French taxe d’habitation on main residences will soon be a thing of the past, some households still have to pay in 2022 and the deadline is just around the corner.  

In 2022, only households above a certain income threshold are obliged to pay the taxe d’habitation on their main residence. For example, a couple earning 44,830€ or less will be exempt from payment. The same household earning just above this threshold, up to 46,914€, will benefit from a further “partial exemption” in addition to a 65% reduction that applies to all payments this year. For a family of four, the total exemption limit is 57,340€ and the “partial exemption” stands at 59,424€.  

French taxpayers eligible for the impôt sur la fortune immobilière or property wealth tax are not exempt from the taxe d’habitation even if their income is below the applicable threshold.  

All households above the income thresholds, which can be found here, including property wealth taxpayers, will benefit from a 65% reduction rate that is up from 30% in 2021.  

Second homes and vacant properties

Although the taxe d’habitation for main residences is set to be entirely abolished in 2023, but it will still apply to second homes and vacant properties.  

As Monaco Life reported earlier this week, second home owners in parts of France with high demand for housing could see their taxe d’habitation bills rise by as much as 60% in 2023 via a surtaxe.  

Elderly residents who live in a care home but still own a property are exempt from paying the taxe d’habitation on this property.  

When and how to pay

Notifications for payment were sent out by the tax office in early October – both by post and via email for residents who have previously opted for a paperless service – so if you haven’t yet received your bill, it is advised to contact your local centre des impôts. It may well be the cause that you simply exempt. The deadline is midnight on 15th November for postal payments or midnight on 20th November for online payments. All payments above 300€ must be made via the online portal.

 

 

Photo source: Sten Bergman for Unsplash