Why the property tax soared in 2022

Bad news for homeowners. The property tax increased by 4.7% in 2022 in the 200 largest cities in France, according to the Observatory of property taxes carried out by the National Union of Property Owners. But this is only an average. In some cities, the increase is even stronger.

At the top of the ranking, the property tax increased by 23.9% in the town of Poissy in the Yvelines, followed by Mantes-La-Jolie in the Yvelines then Martigues in the Bouches-du-Rhône.

A long-term trend

For Christophe Demerson, president of the UNPI, property tax has actually been increasing in France for several years. “In 10 years, it’s about a 30% increase, it’s three times inflation and three times the increase in rents.” The increase in the property tax in 2022 is explained by several factors.

First, the increase in rental values. This is what serves as the basis for calculating the property tax and they have been revalued to take inflation into account.

A new rate in certain intermunicipalities

Secondly, there is the levy rate applied on this basis by the municipalities, and the intermunicipalities if they so wish. For the first time in 2022, the intermunicipality to which the cities of Mantes-La-Jolie and Poissy belong has created one, explains Reber Kubilay, municipal councilor in charge of finance in Mantes-La-Jolie.

“The GPSEO (Grand Paris Seine et Oise) intermunicipality voted in February 2022 to create a rate of 6% which applies to this property tax base. The surplus which is paid by the citizens at the level of their property tax comes almost exclusively from the creation of this new tax by the intercommunality.

And the situation could get worse next year. The government anticipates an even stronger increase in rental values ​​in 2023.