Adjustments in taxe d’habitation & foncières charges - what you need to know

taxedhabitation
taxefoncieres

(Catharine Higginson) #1

Yes, it’s that time of year again when random tax demands for huge amounts of money land on your doormat. Or rather, if you have opted to pay monthly, they don’t drop through the door anymore and it’s only when you log in to your personal gouv.fr account, that you will notice that they’ve gone up.

If you are paying monthly, don’t assume that these payments will remain the same. Assuming the overall amounts of your taxe d’habitation or taxe foncières have increased, you can expect the final three monthly payments of the year to be increased to account for the shortfall. In 2014 our taxe d’habitation was 283€, in 2015 it dropped to 262€ and then in 2016 increased to 414€ meaning that the last three monthly payments were all larger. Pre-Christmas and with two birthdays in December, this was less than ideal. I’ve just looked online and this year’s final total is not yet available until mid-October but I have no doubt it will again be higher than the 550€ that is showing on the ‘Avis primitif’!

Many people have reported large increases in their taxes foncières. Ours have been gradually increasing from 668€ in 2014 to 740€ in 2017. Again, this isn’t the final figure so I could still be in for a nasty surprise.

And nasty surprises are the one thing you want to avoid, especially at the tail end of the year and coming up to Christmas. So my advice is:

Pay both taxes on a monthly basis. There may well be a bit extra to find at the end of the year but it’s still better than being whacked with two large bills. If you have the self-discipline, you could of course put the money aside every month (or cross your fingers and stick it on the 2.30 at Wincanton but we don’t actually recommend this as a course of action) but if you are like me, it’s probably easier just to sign up and pay it monthly.

Make sure that your money is actually being debited. A couple of years back I had a nasty shock in November when I got a late payment charge for non-payment of my taxe d’habitation. I thought I’d signed up to pay both monthly but in fact only the foncières payment had gone through. So I had to find the entire sum plus the late payment charge.

Be aware of your tax liabilities - if you are the occupant of a property on the 1st January, you are liable to pay the taxe d’habitation for the entire year. This is (I think) a ridiculous and unfair system especially as it applies to students in private sector rentals and people who may be on fairly low incomes. Our daughter moved into a flat in November and moved out 18 months later but still has to pay two full years worth of tax. Her rent was 340€ per month but the taxe d’habitation was 650€ per year which is a lot for a student to find. As she is still fiscally attached to us, she did get a reduction (dégrèvement) of 300€ but this still left her (well, us!) an extra 350€ to find.

Check if you are entitled to any reductions (based on income level) and remember that over 60’s with income below a certain level (unless they are liable for the tax known as the “impôt de solidarité sur la fortune” (ISF), as well as people receiving certain benefits are not required to pay taxe d’habitation. And the sooner that Macron gets rid of it for the rest of us, the better!


(Charles Field) #2

Please explain your last paragraph. I am well over 60 and still pay tax d habitation. Is this not also dependant on income.? I am well below ISF.


(stella wood) #3

Hi Charles… your income needs to be below a plafond (ceiling) to get out of paying Tax d’Hab… we are just above the ceiling…:disappointed_relieved: and have to pay, but with a discount. (allégement). Maybe in 2017 we will be just poor enough to not have to pay Tax d’Hab… who knows… :wink:


(Catharine Higginson) #4

Thanks Stella! X


(stella wood) #5

Well… what a coincidence… I’ve just had a call from friends in Jarnac… who want me to explain their Tax Foncière bill…

I have followed Catharine’s advice and sent them down to their local Trésorerie to get a Direct Debit organized… :relaxed:


(stella wood) #6

I still cannot figure out how anyone’s Tax Foncière can go up by 622 euro (11% increase)…I certainly don’t know anyone who lives in such a posh place…:laughing:


(David Martin) #7

It’s put me off moving to the Lot. It’s no longer my favourite department if housing taxes are at that level!


(stella wood) #8

surely it means the TaxFonc bill is more than 6000 euro ??? perhaps it is a Castle…:relaxed:

Phew, nothing like that where we are… :relaxed:


(michael archer) #9

Stella, it is not a posh place it is a working farm when we purchased the property back in 2008 our tax F was 3187 euros now after total renovation and after adding a swimming pool it has shot up to 5887 euros plus Tax H of 2233 euros which are last years cost not had this year yet, we do get a reduction of about 1300 euros on the land which is given back to us in the new year also the tax F is 100% tax deductable against our income so does help.


(stella wood) #10

Aha… now I understand your situation… so, no castle… but a working farm… which you have renovated and improved amenities (pool). As a result, your property has been re-evaluated…:anguished: (This is standard procedure, but can come as a nasty surprise… )

and, of course, every percentage of tax (for whatever) will be calculated on this new, higher, value.

Glad you hear that you can set the TF against the income… :relaxed:


(David Chapman) #11

Can it possibly be correct for the tax d’habitation to be higher than fonciere? we are being charged roughly 1800 euros for the d’habitation and 1500 for the fonciere???

David


(Tony PERLA) #12

The reduction of the “Taxe Habitation” (Property Tax) is NOT universal.

Here in French:
Attention : Si vous avez été exonéré de taxe d’habitation en 2016 en raison de vos revenus, l’exonération est maintenue en 2017 et 2018 même si vos revenus sont supérieurs aux plafonds. Ensuite, la valeur locative du bien fera l’objet d’un abattement de deux tiers en 2019 et d’un tiers en 2020.

My translation :
If you have been exonerated form the Property Tax in 2016 because of your level of revenues, the exoneration is maintained in 2017 and 2018 if your revenues are superior to upper limits. Then, the rental value of the property will be reduced by two-thirds in 2019 and one-third again 2020

What upper limits? (In French, see here.) Seriously, have your tax declarations done by someone competent in the matter. (No, I am not competent.)

If any corrections to the above translation are necessary, please inform. Thanks in advance …


(stella wood) #13

@Tony_P

My very first Tax Declaration was done face-to-face with the Tax folk…and since then very little has changed.

However, going online was a little daunting… first attempt took me ages…so worried about making a mistake…but I more or less used the previous Paper Copy as a crib sheet…(albeit with up-to-date figures) and it worked ! done similarly every year…:blush:

So, I would say that unless your finances are really very complicated…you do not need to pay someone… also, the Tax Folk are always available to answer questions and help folk…so don’t be shy… it’s what they are there for… they work for US :heart_eyes:

The exoneration continues…EVEN IF (not if) your income is above the limit…


(Tony PERLA) #14

You obviously have more courage than I … ;^)


(stella wood) #15

@Tony_P

No idea how long you’ve been here in France (or are you, even)… have you done a Tax Declaration here yet???


(Tony PERLA) #16

​*>have you done a Tax Declaration here yet???*

I have, Stella, many a time. But I’ve a professional (a friend at
Ernst&Young) who does it for me at a reasonable fee.

If he gets stroppy, I just may try your method. But, so far, so good …


(stella wood) #17

My word… Ernst & Young… that takes me back a long, long way…:wink:


(Diana Pinnell) #18

Our TF has gone up from 1161€ to 1176€, at least it’s under 2% rise here in Ain.


(Tony PERLA) #19

Do you have a secondary school in your town/village?

I pay about the same TF here in the Gers in a small village where there is a school (for about 30 children) . And I recall the tremore when the region decided to consolidate them.

Which is going to happen anyway . . .


(Diana Pinnell) #20

We don’t have a secondary school, primary only.