Abolition of Taxe d’habitation

In a bid to return “purchasing power” to the general public, Macron has announced that he will be abolishing taxe d’habitation for 80% of first homes in France. The abolition will be implemented incrementally over the next three years, until a complete removal in 2023.

If, indeed, you fall into the “tax-free” category, don’t get carried away, you will still have to pay taxe foncière and the taxe audiovisuel (TV license) which has been, until now, included in your taxe d’habitation.

Are you eligible?

The calculation is fairly complicated and is based on “parts”, or shares, that contribute to your household’s total annual revenue.

If the total sum of your “parts” falls below the revised thresholds, then your taxe d’habitation contribution will gradually decrease to… 0!

It’s not easy to work out how much you could save, maybe a job for an accountant, but you can find out more here.

Wider effects

According to government sources, the reduction/abolition of the taxe d’habitation will save eligible households on average 555€ per year. Great news for residents but who will foot the bill for the deficit?

The cost to the State is estimated to be almost €10 billion, a considerable sum that will need to be found elsewhere.

According to Midi-Libre, the 10 communes in the P-O that generate the greatest amount of taxe d’habitation (and therefore will represent the greatest loss) are:

  1. Perpignan € 33,512,315 (58,336 households)
  2. Saint-Cyprien € 4,631,662 (6,374 households)
  3. Canet in Roussillon € 4,124,626 (7,866 households)
  4. Argelès-sur-Mer € 3,519,636 (6,164 households)
  5. Saint-Esteve: € 3,489,770 (5,245 households)
  6. Cabestany: € 3,286,579 (4,468 households)
  7. Saint-Laurent-Salanque € 2,602,720 (4,770 households)
  8. Canohes € 2,446,572 (2,735 households)
  9. Pia € 2,351,527 (3,418 households)
  10. Elne € 2,290,753 (4,011 households)

Find out more at www.impots.gouv.fr

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