During each summer, the land tax services are working to calculate the amount of property taxes and edit the tax notices that will be addressed to taxpayers at the end of August. And the task may seem colossal … on the one hand, with regard to the number of subject owners, who would amount to 17 million according to the latest figures published by INSEE. On the other hand, given the calculation elements to remember to estimate the amount of each tax, which include both the cadastral rental value of each property and the tax rate voted every year within each local authority.
However, these figures often increase from one year to the next. And the owners now have the sad habit: at the end of each summer, the property tax notice they receive has a clear increase compared to the amount paid the previous year. The year 2025 will unfortunately do not derogate from this rule, since a new revaluation is expected.
Because according to the figures communicated by the tax administration, cadastral rental values will increase again this year. This value corresponds to the annual theoretical rent level that taxed property could produce if it was rented under normal conditions. Concretely, this means that the owners’ property tax will at least increase at the rate of cadastral rental values, unless their municipality (or depending on the case, their intercommunality, their union of municipalities or their public land establishment) has decided to lower its tax rate. Unfortunately, the municipalities, on the contrary, have rather tendency to revalue this percentage in order to replenish their budget, increasing the final amount of the property tax for the taxpayer.
According to information communicated by the tax services, the increase in cadastral rental values is set at 1.7 % this year. Concretely, this means that a owner having paid 900 euros in property tax last year will be seen – the minimum – Claim 15 euros more this year. Note that this increase of 1.7 % will also concern the household waste removal tax (TEOM).
Most owners will therefore suffer an increase in their property tax at least 1.7 %%. A rate that may seem low, but which succeeds the strong increases known in recent years. In addition, many owners will have to face a double increase due to the enhancement of their local tax rate. An unproductive revaluation for real estate investment and, in fine, the rental market. The slight drop in borrowing rates observed this year is indeed struggling to compensate for the tax burden that weighs on owners.
