Property tax cuts outlined

Details of reductions to the taxe d’habitation which will exempt around 17 million households (80% of the population) by 2020 have been released.

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The tax is paid by anyone with a French home – tenants, owner-occupiers and second home owners – apart from some older people on low incomes.

Eligibility for new reductions will be based on revenu fiscal de référence (roughly, net taxable income). For single people the ceiling to benefit is €27,000 or less; for childless couples €43,000, then €6,000 each for the first and second child, and €12,000 each from the third.

A one-third cut in people’s tax is planned for 2018, then another third in 2019 and a final one in 2020 exempting those concerned completely by then.

It will mean an eventual saving of on average €550 per household (the typical bill of those who will qualify).

Scrapping the tax for most households was a key pledge of President Macron. It is a key fundraising mechanism for regional and local government and national government will compensate local authorities.