Property Tax 2024: Calculation, Exemptions, and Reductions You Need to Know

Property tax is an unavoidable local tax for property owners in France. In 2024, its calculation and exemption rules are evolving, with opportunities not to be missed to reduce your bill.

How is property tax calculated in 2024?

The property tax on built properties (taxe foncière sur les propriétés bâties or TFPB) is an annual tax due by the owners or usufructuaries of a property. Its calculation is based on two main elements: the cadastral rental value and the tax rate set by local authorities.

The cadastral rental value: basis of calculation

This is determined by the tax authorities based on several criteria:

• The surface area of the property;
• Its location;
• Its standard (number of rooms, amenities, etc.);
• The characteristics of the local rental market.

This value is updated annually to reflect changes in rental prices. In 2024, as in previous years, this update is automatic and requires no action on your part.

The tax rate: a local variable

The tax rate is set by local authorities (municipalities, departments, intermunicipal bodies). It can vary significantly from one municipality to another. For example, in 2023, the average property tax rate in metropolitan France was around 30%, but some municipalities apply much higher or lower rates.

To find out the rate applicable to your property, you can consult your tax notice or visit the tax authorities’ website under the "Gérer mes biens immobiliers" (Manage my properties) section (see arrêté du 4 décembre 2024).

The calculation formula

Property tax is calculated using the following formula:

Property tax = (Cadastral rental value × Deduction rate) × Tax rate

A 50% deduction is automatically applied to the cadastral rental value for built properties.

For example, for a property with a cadastral rental value of €10,000 and a tax rate of 30%, the calculation would be:

(€10,000 × 50%) × 30% = €1,500 annual property tax.

Property tax exemptions in 2024

Several schemes allow for partial or total exemption from property tax, subject to certain conditions. Here are the main cases applicable in 2024.

Exemption for new constructions

New constructions, reconstructions, or extensions for residential use benefit from a two-year temporary exemption from the year following their completion. This exemption is automatic and requires no specific action (article 1383 of the Code général des impôts).

However, municipalities may limit this exemption to 40%, 50%, 60%, 70%, 80%, or 90% of the taxable base by resolution.

Exemption for social housing

New social housing, financed by more than 50% through state-subsidised loans, benefits from a 15-year exemption from the year following their completion (article 1384 A of the Code général des impôts). This exemption also applies to housing acquired with state financial assistance or a subsidy from the Agence nationale pour la rénovation urbaine (ANRU).

For housing acquired between 1 July 2004 and 31 December 2026, the exemption period is extended to 25 years.

Exemption for elderly or low-income individuals

These exemptions apply to, among others:

• Individuals aged over 75 as of 1 January of the tax year, provided their income does not exceed a certain threshold (see arrêté du 18 mars 2011).
• Recipients of the allocation aux adultes handicapés (AAH) or the allocation de solidarité aux personnes âgées (ASPA).
• Low-income taxpayers whose income does not exceed the thresholds set by the tax authorities.

For 2024, the income thresholds for these exemptions are as follows (for metropolitan France):

• €10,024 for the first family quotient share;
• + €2,676 for each additional half-share.

These thresholds are higher for overseas departments (départements d’outre-mer or DOM). For example, in Martinique, Guadeloupe, and Réunion, the threshold is set at €11,861 for the first share.

Exemption for vacant properties

How to reduce your property tax?

In addition to exemptions, several schemes can help reduce your property tax bill. Here are the main options.

Deductions for dependants

Taxpayers with dependants (children, ascendants, etc.) may benefit from a deduction on the cadastral rental value of their primary residence.

The deduction amounts vary depending on the number of dependants. For example, in metropolitan France:

• €5,113 for the first family quotient share;
• + €1,478 for the first four half-shares;
• + €2,614 for each additional half-share.

Rebates for renovation works

Certain energy efficiency improvements or renovation works may qualify for a temporary rebate on property tax.

Disputes and claims

If you believe your property tax is too high, you can challenge the amount by submitting a claim to the tax office responsible for your property.

The claim must be filed before 31 December of the year following the tax’s due date.

Steps to benefit from exemptions

Here are the steps to follow.

Declare your property

Since 2024, property owners must declare the occupancy of their properties online via the "Gérer mes biens immobiliers" service on the tax authorities’ website (see arrêté du 4 décembre 2024).

Apply for an exemption

For exemptions related to your personal situation (age, disability, low income), you must submit a written request to your local tax office.

Check deadlines

Applications for exemptions or reductions must be submitted before 1 January of the tax year.

Frequently Asked Questions

Who must pay property tax in 2024?

Property tax is due by the owner or usufructuary of a property as of 1 January of the tax year.

How is the cadastral rental value calculated?

It is updated annually to reflect changes in the rental market.

What exemptions are available for elderly individuals?

Can you challenge the amount of your property tax?

Which works qualify for a property tax reduction?

These works must be declared to the tax authorities to qualify.