The property tax will increase moderately in 2024, according to the Finances et Stratégies Locales firm

Local Finance and Strategies has just published its annual barometer which is authoritative on the subject. This year, the increase should be moderate, which is rather good news after the sharp increase experienced in 2023.

The property tax is a local tax, payable once a year, which applies to all owners of real estate. Concretely, for 2024, large cities (those with more than 100,000 inhabitants) have decided to increase this tax by 1.2% on average. More municipalities than in 2023 will leave their tax rate unchanged. This is what emerges from the annual barometer published at the end of May 2024 by the Finances et Stratégies Locales firm, which is the authority on the subject.

The moderate increase is due to the municipalities’ own decision after the sharp increase imposed last year. However, whatever the cities, real estate owners will still experience, in 2024, an increase of 4%, even in municipalities which do not increase land ownership. For what ? Quite simply because the property tax is increased by the amount of annual inflation. However, the calculation is carried out in the month of November preceding the tax year. Bad luck, in France inflation started to fall in 2024 and not in 2023. For the property tax this year, we must therefore add 4% automatic increase, in addition to the increase – however moderate it may be – decided by the municipalities.

This is a relief, particularly in Paris where the rate rose last year from 13.5 to 20.5%. We can cite other examples where property owners will take a breather, including Grenoble, which recorded the largest increase last year, approaching 66%. Angers, Dijon, Caen, Le Havre and Montpellier have also decided to take a break this year. None are increasing their property taxes.

Some cities will be more greedy than others. This year, this is the case for Nice where the property tax will increase by 19% (excluding inflation), Saint-Étienne (+15%), Annecy (+14%). Good news in perspective: inflation having fallen this year, the calculation which will be made next November should make it possible to further moderate the property tax in 2025.