Abolition of housing tax 2023: all useful information
Through Dorothy Perry February 1, 2023
If you own one or more second home, on the other hand, the housing tax is maintained. Discover in this section all the useful information.
Finally, the owners of vacant residences is still required to pay THLV (Housing Tax on Vacant Housing).
Read the rest of this article to find out who remains liable for housing tax in 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.
Here’s what you need to know about TH in a second home:
- It is associated with: owners or usufructuary of furnished accommodation that they do not live in as their main residence
- It is suspected: of local authorities
- Its quantity: Depends on rate set by the local authority where the residence is located, but also the rental value of the property (including outbuildings)
- Possible increases: the cities located in a tense area may apply an increase (understand an “extra cost) to this tax
- Impossible subtraction: this tax cannot be subject to reductions or limitations based on income, as was the case with the old TH on primary residences
- Exemptions: you may be exempt from TH on secondary residences if the residence in question is located in a municipality where the vacant residence tax applies, or if you enter a special reception establishment after leaving your primary residence (Warning : in this case, income limits apply)
- Statement: you have no declaration to make, you will automatically receive a tax notice at the end of the year (you can also find this document in your “Particular Space” on the Taxes website)
- Payment date: like the old housing tax on primary residences, TH on secondary residences will be payable at the end of the year, but can also be paid monthly if you want
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
A question to ask? A problem to raise? An entire community at your service…
❓ Who will have to pay housing tax on primary residences in 2023?
❌ Have all housing taxes been removed?
? Does TH still exist in vacant housing?
? Who should be contacted in case of questions about housing tax?
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A graduate of Sciences Po, I am a freelance journalist/editor. I have ten years of professional web and writing experience and I have been working for the aide-sociale.fr website since 2017.