Repeal of housing tax 2023: all useful information

through Dorothy Perry February 1, 2023

The housing tax was abolished: what you need to know

Renting or buying a home creates several types of tax liability depending on the situation. Among the latter there were until now housing tax on primary residences (TH). It was to be paid by all persons living in the dwelling, tenants as well as owners, and it applied to more than 30 million apartments.

In 2018, the reform providing for the abolition of the progressive housing tax entered into force. Initially relaxed, TH was later subjected to reductions and exclusions (all details here), Before disappearing completely in 2023.

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

After this, no tenant or owner is liable for housing tax for a principal residence. This 2023 removal is for everyone without exception.

But be careful: it is only about TH in the main residences. Housing tax still exists on secondary residences as well as on vacant dwellings (see below). Similarly, owners are responsible for property taxes, except in exceptional circumstances.

The end of the housing tax, but not for second homes

As we mentioned above, the cancellation of housing tax does not apply to second homes. Owners of this type of dwelling(s) are still required to pay housing tax in 2023 and beyond.

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

Do not delete housing tax: what about empty accommodation?

Owners or usufructuary of the so-called “empty” residential building It will have to continue to pay housing tax (THLV) on vacant dwellings in 2023 and beyond. Indeed, the repeal of the residence tax does not apply to this particular tax.

It should be noted that vacant residential houses belonging to THLV are those that meet the following criteria:

  • Vacancy starts from this date More than 2 years (from January 1 of the tax year)
  • Not a residence not located in a stressed area (in which case TLV applies)
  • The residence is located In a municipality that implements THLV

The amount of THLV it is calculated based on the rental value of the residence and the tariff applied by the relevant municipality.

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

Good to know: in 2023, The applicable rate for TLV is increasing. It increases to 17% in the first year and 34% in subsequent years.

? Other articles may interest you : If you want to know more about taxes related to housing, read the articles below


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