Bad news for homeowners, the property tax will increase in 2022. Due in particular to inflation currently affecting France. And the increase will not be the same everywhere. Don’t worry, the Objeko newsroom will tell you all about it. Are you ready ? Well, here we go.
Property tax increase
Housing tax, domestic waste collection fee, property tax. Most French people are used to paying local taxes. Unfortunately, we are going to give you bad news. In fact, you should know that the property tax will increase drastically in this year 2022. And this increase, more important than expected, will affect the 32 million French people who own a property. immovable. It should be noted that to set the amount, the tax authorities are based on the value of the cadastral income.
This is a theoretical annual rent that the owner could apply if they were to rent the property. But why such an increase? Well, it’s very simple. The first reason given is the revaluation of 3.4% of the securities rental cadastral. Mechanically, if there is inflation, the property tax goes up. And since it has continued to increase since 2018, it could not be otherwise for this tax. It must be said that the Covid and the crisis in Ukraine did not help.
The war in Ukraine, the main cause?
As we told you earlier, the war in Ukraine had the effect of accelerating inflation. Thus, for a few weeks, prices of all kinds, which continue to Climb since the end of February. Fuels and food are particularly affected. The European Central Bank has even estimated an inflation rate that should rise to 5.1% in 2022. This is why the property tax will increase dramatically.
The least we can say is that the property tax weighs more and more on the budget of the French. According to a recent study, it even seems that this tax has increased by 11.4% in five years. That is, six times faster than rents and three times faster than inflation. Property tax is due each year in the fall at communities territorial (that is, the commune, the intercommunality and in certain cases the department) according to their situation on January 1. You have to find out to know exactly.
More or less expensive depending on the city