There housing tax reform in 2021 brought about some changes. Fixed in 1974, the housing tax is a tax contribution linked to the main habitat and paid for the benefit of local authorities. Its method of calculation is based both on the net cadastral rental value of the accommodation, on tax income and on the territorial tax scales of the municipalities or intermunicipalities. This tax concerns all occupants having the disposal and enjoyment of taxable premises on 1 January of the current year. 2018 marks the beginning of the abolition of this local real estate tax to which owners, tenants and occupants are subject free of charge. By 2023, except in special cases, all taxpayers will be gradually exempted.
Gradual reduction of housing tax in 2018
The 2018 finance law initiated a phasing out of council tax. The relief from this property tax has been programmed over 3 years but it will in reality continue until 2023. From the first year, 80% of the occupants of housing benefited from this measure on the basis of their reference tax income and their family quotient. For the most modest tax households, the housing tax was automatically reduced by 30% in 2018, then by 65% in 2019 and finally by 100% in 2020. After 2019, only 20% of taxpayers continued to pay this tax.
Total abolition of the housing tax between 2021 and 2023
Since January 1, 2021, the housing tax reform on principal residences applies to all taxpayers. Its final implementation now extends over 5 years and will therefore be fully completed in 2023. In the meantime, the 20% of taxpayers still liable for housing tax have access to a reduction of 30% in 2021, then % in 2022 and finally 100% in 2023. Thus, on this date, no more households (except in special cases) will pay housing tax, automatically and without income conditions.
Exemption thresholds in 2021
Find below the scales of total or partial exemption in 2021.
- For 1 tax portion: from €27,706 for total exemption to €28,732 for partial exemption;
- For 1.5 tax shares: from €35,915 for total exemption to €37,454 for partial exemption;
- For 2 tax shares: from €44,124 for total exemption to €46,176 for partial exemption;
- For 2.5 tax shares: from €50,281 for total exemption to €52,333 for partial exemption;
- For 3 tax shares: from €56,438 for total exemption to €58,490 for partial exemption;
- For 3.5 tax shares: from €62,595 for total exemption to €64,647 for partial exemption.
Special cases for low-income households
Several situations, subject to reduced means conditions, make it possible to claim a total exemption from the housing tax before its abolition in 2023. These concern:
- Beneficiaries of the solidarity allowance for the elderly;
- Beneficiaries of the supplementary invalidity allowance;
- Beneficiaries of the disabled adult allowance;
- Widowed persons whether or not they receive the widowhood allowance or the survivor’s pension;
- People over 60;
- Students under residence conditions.
There are exclusions for certain total or partial exemption measures:
- Owners of secondary residences;
- Taxpayers subject to real estate wealth tax.
Some information to note
- I’housing tax exemption is calculated and applied without any particular procedure for all eligible taxpayers;
- Pending the total abolition of this tax in 2023, it is possible to request a total or partial rebate from your local branch;
- This exemption mechanism does not include the audiovisual tax. This continues to be liable in the same way as in previous years;
- For the payment of housing tax in shared accommodationthe tax authorities only take into account a single tax notice to calculate the sums due;
The amount of this contribution is generally due on November 15 of the current year.
