To obtain a property tax exemption, there is no need to apply. It is granted under conditions to taxpayers of a certain age whose reference tax income does not exceed the income ceilings set by the General Tax Code. Exemption, reductions, ceilings, here is what owners of a residence need to know to be exempt from property tax in 2024.
What are the criteria for no longer paying property tax?
An exemption for owners of a primary residence
As a homeowner, you therefore quite logically receive a property tax notice each autumn for your local taxes. However, an exemption from property tax on the main residence is provided for people whose income does not exceed certain ceilings. Therefore, they benefit from it automatically, without having to contact the tax authorities. However, they must still pay the household waste collection tax (TEOM).
An exemption for taxpayers with low incomes
Intended for low-income taxpayers, the property tax exemption for the main residence concerns people:
- over 75 years of age on January 1 of the year of taxation subject to resource conditions,
- recipients of the solidarity allowance for the elderly (ASPA) without any resource conditions,
- beneficiaries of the PSLA system (for a period of 15 years),
- beneficiaries of the supplementary disability allowance (ASI) without any resource conditions,
- beneficiaries of the allowance for disabled adults (AAH) subject to resource conditions.
A temporary exemption can also be granted for accommodation that is built or purchased new and never lived in.
Please note : if the owner loses the right to the exemption, it is extended for two years. For the following two years, he benefits from a reduction in the rental value.
Calculation of property tax 2023
Who can be exempt from property tax in 2024?
The 2023 Finance Act has extended the property tax exemption for the elderly and disabled.
ASPA and ASI beneficiaries
People who receive the solidarity allowance for the elderly, known as ASPA, or the supplementary disability allowance, known as ASI. Since these two allowances are granted to people with little or no income, the resource condition to benefit from this property tax exemption is not required.
People over 75 years old
Persons aged over 75 on 1 January of the tax year (Article 1390 of the General Tax Code) subject to income conditions. In concrete terms, if you turn 75 in 2024, the property tax exemption will be refused, but you will be able to benefit from it the following year. In a married couple, it does not matter which of the two spouses is over 75.
AAH beneficiaries
Here, the exemption only applies if the accommodation is the personal property of the disabled spouse or community property (marriage without having made a contract).
Usufruct and property tax
What is the reference tax income to be exempt from property tax?
Income not to be exceeded for people over 75 years old
For AAH holders and people over 75, property tax exemption is granted if the reference tax income (RFR) does not exceed certain limits. The ceiling varies depending on the composition of the household and the number of tax shares.
2024 exemption ceiling
For example, to obtain an exemption in 2024, the reference tax income for the year 2023 must not exceed:
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What are the conditions relating to the occupation of the main residence to be exempt?
Household composition
To benefit from the property tax exemption, you must live in the accommodation alone or with:
- the person you live with as a couple (marriage, civil partnership, cohabitation),
- your dependents for the calculation of income tax,
- persons receiving the same allowance,
- persons whose reference tax income (RFR) amount does not exceed the limits indicated above.
Therefore, the property tax exemption is not called into question if you accommodate a child who is not your dependent, but who has modest or no resources.
Nursing home or long-term care facility
Furthermore, if you live in a retirement home or in a long-term care facility while you meet the legal conditions to be exempt from property tax, article 1391 B Bis of the General Tax Code grants you the exemption for your former accommodation if you have retained exclusive use of it.
This means that this home is not occupied by other people unless they (spouse, partner, cohabitant, dependent children) lived there with you before you left for the institution.
What are the other permanent property tax exemptions?
Some built properties benefit from a permanent exemption from property tax.
These include:
- drinking water distribution works;
- constructions close to dangerous sites;
- agricultural buildings;
- shelters against aerial bombardments;
- hotels, rural lodgings, furnished tourist accommodation, guest rooms located in rural revitalization areas.
Property tax exemption: conditions, reductions and ceiling
What are the temporary property tax exemptions?
New constructions
Certain new constructions, whether a primary or secondary residence, a commercial, industrial, craft or professional building, benefit in part or in full from an exemption from property tax for two years from 1 January following the completion of the work. These are:
- new constructions,
- reconstructions,
- of certain changes of assignment,
- additions of buildings.
For residential properties, the exemption is total. However, the municipality where the newly built home is located may decide to remove the exemption from the portion of property tax that is due to it. The request for temporary exemption must be sent to the tax center on which the home depends, no later than 90 days after the completion of the work.
Agricultural methanization installations and buildings
THE agricultural methanization installations and buildings can benefit from a property tax exemption for five to seven years.
Housing resulting from the transformation of offices
A property tax exemption is newly created for housing resulting from the transformation of offices for a period of five years. However, this exemption is left to the initiative of local authorities which are not obliged to implement it.
Energy efficient housing
Energy-efficient housing benefits from a five-year property tax exemption upon decision of local authorities.
Housing financed by subsidized loans
New homes financed at more than 50% by subsidized loans and benefiting from the reduced VAT rate can benefit from an exemption from property tax for 15 years.
Housing under renovation
Since 2023, owners engaged in the energy renovation of their property can be exempt partially (50%) or 100%. And this, if their local authority has voted for this tax rebate. To do this, it is necessary to have carried out the following renovation work worth 10,000 to 15,000 euros:
- insulation with the purchase of thermal insulation materials or heating control devices.
- thermal renovation through the acquisition of equipment using renewable energy sources such as heat pumps (HP).
- connection to a heat network supplied by renewable energies or a cogeneration installation.
- installation of devices regulating heating or providing domestic hot water (DHW) using hydraulic energy.
- purchase of rainwater treatment or recovery equipment.
The accommodation in question must have been completed before January 1, 1989. The exemption applies for three years from the year following the end of payment for the work.
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Who can benefit from a property tax reduction?
People aged over 65 to under 75
Some people are not eligible for an exemption, but they can claim a reduction in property tax on their main residence under certain conditions. Thus, people aged over 65 and under 75 on 1 January of the tax year whose RFR does not exceed the ceiling benefit from a reduction of 100 euros.
People living in retirement homes can also benefit from this reduction, provided that their main residence is not occupied.
Taxpayers whose RFR does not exceed a certain amount
In addition, taxpayers not subject to wealth tax and whose 2023 reference tax income does not exceed 29,288 euros for the first part of the family quotient, increased by 6,843 euros for the first additional half share and 5,387 euros from the second half-share benefit from the reimbursement of the portion of property tax that exceeds 50% of this income. The request for capping can be made online via a form directly on the tax website no later than December 31 of the year following the date of recovery of the property tax.
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