Taxe d’habitation changes ‘next year’

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Only households with a taxable income of more than €20,000 a year will continue to pay taxe d'habitation

Minister reveals that move to benefit 80% of households will be brought in earlier than expected

Moves to end the taxe d'habitation for four out of five households will start from next year, with the least well-off being the first to benefit.

There had been doubts over when President Macron’s campaign promise would be brought in after Prime Minister Edouard Philippe said in his parliamentary address the timetable had been moved back.

In moves revealed by Economy Minister Bruno Le Maire, the tax will be reduced for retired people with a pension of just over €1,200 a month and then this will be extended to other groups.

However, this same group of low-income retired people will be hit hard by the 1.7% increase in the CSG social charge which also comes into force next year.

Overall, it is thought 80% of households will eventually benefit from the reform of the taxe d’habitation, for a total of 16.6m families. Only households with an annual taxable revenue of more than €20,000 per individual will still pay.

Ending the tax has upset mayors who will lose one of their fund-raising powers – although the government has said it will repay them the estimated €10billion cost “to the exact euro”.

In the August issue of Connexion we look at which departments will see residents benefit the most from the change – you can order your copy and subscribe, here.

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