2023-08-16 16:39:04
Property owners will receive, between the end of August and mid-September, their property tax notice for the year 2023. The amount of this tax has been increased successively for years, particularly in large cities. The broker Meilleurtaux has calculated the share that this tax represents in the amount of mortgages. A charge that can be high and represent the equivalent of two monthly loan payments in some cities.
Property tax on the rise
Property tax in France has been subject to successive increases in recent years. Its amount differs according to the city considered. In Grenoble, for example, the amount of the property tax was 134 euros per month in 2022. The monthly mortgage payment there is on average 1,168 euros. This tax therefore represents 1.3 monthly installments of additional credit.
“The rise in interest rates since the spring of 2022 has clearly contributed to pushing up the monthly bill. When you add to that the ever-increasing property tax, it is clear that the bill is getting heavier year following year for owners, and it will obviously be worse in 2023”explains Maël Bernier, director of communication and spokesperson for Meilleurtaux.
This tax is systematically indexed to inflation and should therefore continue its upward trend in the major cities of France. If we keep the example of the city of Grenoble, this tax should experience a spectacular increase of 24.4%.
In some cities, the property tax does not weigh heavily, but…
Some cities in France are subject to a low tax. These cities are nevertheless often affected by significant monthly loan payments, like Nice, Lyon or Paris. Thus, in 2022, this tax only represented 770 euros per year in Paris, i.e. a monthly amount of 64 euros.
The repayment of a mortgage is however expensive, since it amounts to 4,511 euros per month. The property tax therefore only represents 0.4 monthly installments of credit in the city of Paris. “With such high real estate prices, the weight of the property tax ultimately represents a trifle, compared to what is paid for the credit as such”, analyzes Maël Bernier. Conversely, the property tax represents a significant share of the mortgage in other French cities. It can correspond to two additional monthly payments.
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