That’s bad news for homeowners. In 2023, many municipalities have already announced an increase in property tax. For some, this is yet another increase that is beginning to weigh heavily on homeowners’ budgets as inflation hits the country.
Some owners may not know this, but it is possible not to pay the property tax in 2023 or, at least, to lower the bill. We tell you how to do it.
What is property tax?
The property tax is a local tax which concerns the owners or usufructuaries of built properties. It is calculated according to the cadastral rental value of the property and the rates voted by the local authorities. It must be paid each year, no later than October, after receipt of a tax notice during the last quarter of the year.
If you find that your property tax is too high, know that there are ways to not pay it or to reduce it, depending on your personal situation or the type of accommodation. Here are the main cases of exemption, relief or capping of property tax.
How to be exempt from property tax?
Exemptions related to property
Some built properties are automatically exempt from property tax, that is to say without having to apply. These include:
- properties belonging to the State or to local authorities and assigned to a public service or general utility, provided that they are not productive of income
- rural buildings permanently and exclusively assigned to agricultural use, whether they are used by rural farms or agricultural cooperative societies or other agricultural groups
Moreover, certain new constructions or reconstructions benefit from a temporary exemption of two years from the year following that of their final completion. These include, for example, new dwellings intended for main or secondary residence, industrial or commercial premises, or changes of use from a rural building to a dwelling.
To benefit from this temporary exemption, the change must be declared within 90 days to the public finance center of the location of the property. It is also necessary that the municipality and/or the public institution for inter-municipal cooperation (EPCI) with its own tax system have not deliberated to remove or limit this exemption.
Finally, note that for new constructions, if no property tax is applied, other taxes (development taxes in particular) must be paid. They vary according to the municipalities, departments and regions.
Person-related exemptions
Some people can benefit from a total or partial exemption from property tax on their main home, depending on their age, their reference tax income, or their disability.
The first beneficiaries of this exemption are people receiving the solidarity allowance for the elderly (Aspa), the supplementary disability allowance (Asi) or the allowance for disabled adults (AAH), provided that they occupy the accommodation either alone (or with their spouse), or with persons counted as dependents for the calculation of income tax, or with persons whose reference tax income does not exceed a certain ceiling, or with people who are entitled to the same allowance as them. For these people, the exemption is automatic and is not conditional on income.
People over the age of 75 on January 1 of the tax year, provided that they fulfill the same conditions of occupation as those mentioned above, may also benefit from an exemption. On the other hand, they are subject to income conditions : their reference tax income must not exceed a certain ceiling, which varies according to the number of shares of family quotient to which they are entitled.
For example, to benefit from an exemption in 2023, the reference tax income for 2021 must not exceed €11,885 for the first share, increased by €3,174 for each additional half-share.
If you are between 65 and 75 years old on January 1 of the tax year, you can benefit a property tax relief on your home principal if your reference taxable income does not exceed the same ceilings as those mentioned above.
To benefit from these exemptions, it is not necessary to make an application. They are granted automatically if the conditions are met. However, you must report any change in your personal situation.
Note that if you do not meet any of these conditions, you can contact the tax department to request a graceful exemption by explaining that you are in a complicated financial situation. After checking, it is possible to be exonerated (in the best of the cases), to obtain a reduction or a staggering of the payments.
How to lower the property tax?
If you are not in the cases of exemption or relief mentioned above, you can benefit from a property tax cap on your main dwelling if the property tax exceeds 50% of your income. To do this, you must meet the following conditions:
- the property concerned must be your main residence
- you must not be subject to real estate wealth tax (IFI)
- your reference tax income must not exceed the ceiling of €26,515 for the first part of the family quotient, increased by €6,195 for the first additional half-part and €4,877 from the second half-part
The cap consists of eliminate the part of the property tax that exceeds 50% of your income. It applies to the property tax itself, but also to additional taxes and management fees. On the other hand, it does not apply to the tax for the removal of household waste.
To benefit from the cap, you must send a request to your public finance center, upon receipt of your notice of assessment of property tax and at the latest before December 31 of the year following that of the recovery. You must include with your application the form 2041-DPFT-SD and the necessary supporting documents.
Other ways to reduce your property tax
If you cannot benefit from an exemption, a reduction or a property tax cap, you can still try to reduce the amount of this tax. by verifying the accuracy of the information on your tax notice. Indeed, it is possible that the cadastral rental value of your property is overvalued or that certain characteristics of the accommodation are not taken into account.
If you find an error or omission, you can contact the cadastre service or the property tax center on which you depend to request a correction. You can also contest your property tax online via the complaints service accessible on the tax website. You must act within the legal deadlines, that is to say before December 31 of the year following that of the recovery.
Finally, as we explained earlier, you can opt for monthly payment or direct debit on the due date of your property tax. This will allow you to spread the payment over time and avoid penalties in the event of delay. You can subscribe to these payment methods online from your private space on impots.gouv.fr or by telephone on 0 809 401 401 (free service + price of a call).
As a last resort, the request for ex gratia exemption can be a solution. But accepted requests are rarer.
