Act now to reduce French property tax levies in 2021

Those still paying taxe d'habitation should make an adjustment in their online tax account if they pay on a monthly basis

1 December 2020
By Liv Rowland

Residents in France who are still paying taxe d’habitation should act now to avoid paying too much next year.

The tax authorities recommend that if you pay on the basis of regular instalments from your bank account you should visit your personal space at impots.gouv.fr to make a change, lowering the amount of these levies from the start of next year.

This advice relates to the 20% of households who, because of having a higher than average income, have not yet benefited from the progressive lowering and removal of this property tax.

This group will, however, from 2021, benefit from a first 30% reduction in the tax, to be followed by 65% in 2022 and exemption in 2023.

However unless you typically pay your tax in one go in the autumn, in which case there is nothing to do, you need to take action to make sure the 30% reduction is factored into your instalments paid during the year.

If you do not do this they will be levied in full, and you will obtain a reimbursement for the overpayment at the end of the year.

Second home owners are not concerned by this; they will continue to pay the tax at the full rate.

To make the change: Go into your personal space on the tax website and click Paiement, then Gérer mes contrats de prélèvement.

Choose your taxe d’habitation contract and click Moduler vos prélèvements mensuels.

Write the amount of your estimated tax for 2021, factoring in the 30% reduction and including the amount of the TV licence fee, assuming you have a TV (€138).

To help you estimate your reduction there is an online tool

Note that there will be no penalty if your estimate is not exactly correct; you will just have to pay a little more (or obtain a refund) to cover the true tax bill at the end of the year.

If you make this modification before December 15 it will apply from January’s instalment, otherwise it will only apply from February.

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Taxe d'habitation to be removed for high-income households

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