Homeowners can be relieved: the planned increase for the property tax for the year 2021, which will have to be paid, as always, in the fall, is limited. Inflation was very low in 2020, which inevitably influenced the calculation of the revaluation very favorably.
The property tax revalued by only 0.2%
According to magazine information Capital, who was able to obtain the property tax revaluation rate for 2021, it’s quite simple: the mathematical calculation which fixes the annual rate of increase benefited, in favor of owners who are the only ones who pay property tax, from the low inflation suffered by prices in France in 2020.
It is the 0.5% inflation for 2020, a very low rate knowing that for the European Central Bank (ECB) the ideal inflation rate is a little below 2% per year, which will have impacted the calculation. . For 2021, the rate of revaluation of cadastral rental values will be only 0.2%, thus announces Capital.
Good news also for the richest
This rate, explains the magazine, will be applied to the amount of property taxes of all household properties, but also on the amount of housing tax paid by households who own a second home (or a real estate property that is not rented out for the year). While the housing tax on the main residence is doomed to disappear for all households by 2023 and is no longer paid by the richest 20%, the housing tax on second homes remains in force. It can also be increased by the municipality concerned, up to 60% of the normal amount.
But it is not over: the richest households, who therefore still pay housing tax on their main residence, will not see this increase in the cadastral rental value be applied in the calculation of this tax.