Abolition of housing tax 2023: all useful information

Through Dorothy Perry February 1, 2023

Housing tax abolished: what you need to know

Renting or buying a house gives the obligation to pay some kind of tax depending on the situation. Among the latter is until now housing tax (TH) on primary residences. It is payable by all people living in a dwelling, tenants as well as owners, and concerns more than 30 million dwellings.

A reform began in 2018, providing for the abolition of the progressive tax on housing. Initially lightened, TH is subject to deductions and exemptions (all details here), before disappearing completely in 2023.

Thus, it was paid by the last households still subject to TH (and not monthly) at the end of 2022.

Henceforth, no tenant or owner is liable for housing tax for their primary residence. This 2023 removal is for everyone, without exception.

But be careful: it is only about TH in the main residences. Regarding second residences as well as vacant residences, the housing tax still exists (see below). Similarly, owners remain liable for property tax, except in the case of exemption.

Ending the housing tax, but not for second homes

As mentioned above, the housing tax exemption has nothing to do with second homes. Owners of this type of residence(s) are still required to pay housing tax in 2023 and for subsequent years.

If you have any doubts or questions about your situation, don’t hesitate contact your tax office (see how to contact DGFIP).

Removal housing tax: what about vacant housing?

The owners or usufructuaries of the so-called “vacant” residence will have to continue to pay housing tax on vacant dwellings (THLV) in 2023 and beyond. In fact, the residence tax exemption does not apply to this particular tax.

As a reminder, the vacant residences concerned by THLV are the following criteria:

  • The vacancy is from more than 2 years (from January 1 of the tax year)
  • The residence is not not located in a tense area (where TLV applies)
  • Accommodation is located in a municipality implementing THLV

The amount of THLV is calculated according to the rental value of the residence and the rate applied by the municipality concerned.

If you are liable for THLV, you will receive a tax notice at the end of the year.

Good to know: in 2023, the rate applied for TLV increases. It increases to 17% in the first year, then 34% in subsequent years.

? You may be interested in other articles : If you want to know more about taxes related to housing, read the following articles

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