If it is related to this upheaval of “the abolition of the housing tax of the main residences”, which has pushed many common to raise property tax rates and “the multiplication of the additional tax”, is mainly due to the increase in rental values, which serves as the basis for the calculation of the property tax. The rental value corresponds to the theoretical annual level of rent if a property has been rented, and its amount is revalued every year to keep up with inflation.
Increase stronger than inflation
Thus, rental values ​​increased by 14.8% on average between 2018 and 2023 and accounted for three quarters of the increase in property taxes during this period. For the period 2013-2023, rental values ​​account for two-thirds of the increase in property taxes. In detail, Paris shows the largest increase, among the 50 most populous French cities, in five years of its real estate tax (+71.6% excluding the domestic waste removal tax), but its rate remains low (21.15% in 2023) compared to other cities.
Nice, on the other hand, is the only city, among the 50 most populous, to have reduced the property tax rate between 2018 and 2023, by 1.4%. But the Alpes-Maritimes city will return in 2024 with a 21.7% increase in the tax rate. In 2024, property tax, which must be paid this month, will increase by an average of 4.9% in the 200 largest cities in France, according to tax notices sent by property owners who are members of the UNPI.