Local Rate Relief in 2011

Tuesday 03 May 2011

The income thresholds for assistance with local property taxes have recently be revised.

Owners of French property will know that they are liable for two local property taxes (or rates). They are the taxe d’habitation and the taxe foncière.

If the property is let out on an annual basis, then the tenant pays the taxe d’habitation and the landlord the taxe foncière. Otherwise, both taxes are paid by the owner.

There are various rules that grant entitlement to exemption or an abatement from these taxes, one of which is on the basis of income, provided other criteria are also met.

Different rules apply to each tax, although in each case the main income thresholds that apply for complete exemption or reduction are the same.

The income threshold to obtain assistance in 2011 is €10,024 for a single person and €15,376 for a couple.

The income figure used is your net taxable income - your revenu fiscal de référence - as advised on your income tax return for income earned in the previous year.

Other non-income related criteria for exemption include a property that is uninhabitable, and for a new property, but the rules are not the same for both taxes.

You can read more in our guide to Local Property Taxes in France