what income to not pay it?

(TAXE HABITATION) The housing tax will soon be removed for all taxpayers. While waiting for its complete disappearance, discover the amount and the exemptions possible in 2019.

(Update from Thursday, October 10, 2019 to 10:58) The abolition of the housing tax is approaching … By 2020, 80% of homes will no longer pay a housing tax for their principal residence. These are households with a reference tax income of 27,432 euros for the first part of family quotient. For couples with two children, no more than 55,880 euros in reference tax income (2019 income tax assessment 2018). It should be noted, however, that couples with two children whose reference tax income is between € 55,880 and € 57,912 benefit from a progressive tax rebate, a mechanism set up to avoid threshold effects. They will also be completely exempt from housing tax in respect of their principal residence in 2023, when no one will pay, including the 20% of the most affluent households.

The reform of the housing tax represents a shortfall of 250 million euros per year, according to five associations of mayors who, worried about local finances, have denounced this measure, and despite the promise of the government to compensate the lost of resources generated to the euro. In this context, during the examination of the Finance Bill for 2020, the Finance Committee adopted Wednesday, October 9, 2019 amendments of the Republic En Marche and Liberty and Territories group in favor of a revaluation of 1,009 % of rental values, which are used as a basis for the calculation of the housing tax and property tax. This is the last consumer price index, instead of the initial freeze.

It's official, the housing tax will indeed be removed for all … in 2023. Prime Minister Edouard Philippe has confirmed the total removal of the housing tax on the main residences this Wednesday, June 12, 2019, during his policy speeches to MPs. In total, in 2023, 24.4 million homes will benefit from the complete abolition of the residence tax on the principal residence, for an average gain of 723 € per household per year ", figure Bercy in a press release. reform whose implementation is gradual: 80% of French will benefit from a two-thirds reduction in their housing tax in 2019, after a first reduction of one third in 2018, before no longer paying any at all. 2020. The remaining 6.8 million households will have to wait until 2023 for their housing tax to be abolished.

Housing tax belongs to the category of local taxes, as well as property taxes on built and undeveloped properties. The housing tax applies to residential real estate, including second homes and vacant dwellings, as well as their outbuildings.

The housing tax is due by all, tenants and owners. Except in case of exemption, the latter must also pay a property tax. The housing tax affects more than 30 million tax households in France, according to the latest figures published by the General Directorate of Public Finance. With the reform planned by the government, this figure is about to fall drastically. More explanations below.

The housing tax reform was one of the emblematic measures of Emmanuel Macron's electoral program, which promised that by 2020, 4 out of 5 French citizens would no longer pay the housing tax in respect of their principal residence. The abolition of the housing tax For 80% of taxpayers this will consist of a gradual reduction for the households concerned until a total exit of the tax in 2020, at a rate of one third per year. Thus, the beneficiaries of the measure saw their housing tax fall by one third in 2018. The limit not to exceed is set at 30,000 euros of annual income for a single person, or 27,000 euros of reference tax income (RTS). However, in the case of a reference tax income slightly above this ceiling, it is possible to benefit from a gradual reduction. The table below details the rest of the scale. The housing tax will disappear not only for the 80% of homes originally planned but also for the remaining 20%. However, they will have to wait 2023 to no longer pay the housing tax.

Maximum income ceilings to qualify for the Macron exemption (2019 income tax report 2018)

Number of family quotient shares	Reference tax income not to be exceeded in order to benefit from the 30% tax rebate	Range of tax income in which to register to benefit from a degressive rebate
1	$ 27,432	Between 27,432 € and 28,000 €
1.5	35,560 €	From € 35,560 to € 37,084
2	$ 43,688	Between € 43,688 and € 45,720
2.5	$ 49,784	Between € 49,784 and € 51,816
3	55,880 €	From € 55,880 to € 57,912
3.5	€ 61,976	From € 61,976 to € 64,008
4	€ 68,072	From € 68,072 to € 70,104
4.5	74 € 168	Between € 74,168 and € 76,200
5	€ 80,264	Between € 80,264 and € 82,296

The housing tax is calculated annually, according to your situation at 1^st January of the taxation year. This means that if you moved in the year in which the tax is established, your residence tax will be calculated on your January 1 address. The latter takes into account the net rental value of the dwelling, that is to say the cadastral rental value of the dwelling and its dependencies after deductions. The amount of the housing tax is calculated by multiplying the net rental value by the tax rates determined by the local authorities. These are updated each year.

Does the housing tax depend on income?

No, the housing tax does not depend on income, in the sense that it is payable by all occupants of a dwelling on January 1 of the tax year, regardless of their level of resources. On the other hand, in practice, exemptions exist and depend in part on the income of the taxpayer.

Exemption from the housing tax is thus granted to persons who are:

• In one, at least, of these situations: to be over 60 years of age and not to have been subject to the IFI the previous year, to be widowed and not subject to the IFI the previous year, to be beneficiary of the Asi or Aspa, to be a beneficiary of the AAH or be disabled or disabled
• As well as in one, at least the following situations: live alone with spouse or partner of Pacs, with dependents for the calculation of income tax or with persons holding Aspa or Asi
• And whose reference tax revenue in the year preceding the year for which the tax is levied does not exceed a certain ceiling. For 2019, the reference tax revenue for 2018 must not exceed 10,988 euros for the first part of the family quotient (12,455 euros for 1.25 shares and 16,586 euros for two shares).

It should be noted that, since 2015, an exceptional system has allowed people concerned by a tax exemption because of their low income to keep the benefit for two years. Beyond this, they benefit from a reduction on the rental value of the property on which the housing tax bears. This is two-thirds the third year and one-third the fourth year. With the implementation of the phasing out of the housing tax over three years from the 2018 housing tax, people in the third, fourth and fifth years of the device in 2019, as well as taxpayers who have benefited from the maintenance the exemption from the housing tax and the VAT rebate in 2017 or 2018, benefit from a 100% tax relief if they comply with the income conditions.

In principle, the housing tax exemption for low income is automatic. However, the first time you meet these criteria, it may not be enforced. Contact the public finance center in your home. Also exempt from the housing tax are guest houses and rural lodgings, provided they are located in a rural revitalization zone.

Since 2017, another device allows over 60s or widowers regardless of age who have lost the benefit of one of the two exemptions "older than 60" or "widow or widower" in 2014 to benefit permanently from a housing tax exemption provided that:

• That they are not indebted to the IFI for the previous year
• That they respect the condition of cohabitation
• That they display a reference tax income of the previous year that does not exceed the fixed ceiling.

Simulating the amount of your housing tax is quite complex. To do this, you must be able to determine the rental surface of your house or apartment. There are, however, on the Internet simulators of rental area calculation. In addition, the tax authorities have exceptionally deployed a housing tax simulator on its website, in order to allow taxpayers to know whether or not they will benefit from the abolition of the housing tax and, if so, what will be their gain in 2018.

The housing tax applies to all dwellings, whether they are primary residences or second homes, although they are not inhabited all year round.

Does a student have to pay the housing tax? Students occupying housing for their studies are subject to the housing tax. However, they are exempt if they occupy accommodation in a university residence managed by Crous or a similar body, or a room furnished in the house of an individual. Students who are not in one of these situations may still be granted tax relief due to their limited resources if they have a tax return in their name (the tax office calculates then he himself the rebate to which the student is entitled), or because of the low incomes of their parents if they are attached to the tax home of the latter. In this case, the process is up to the youth: they must apply to the public finance center whose address appears on their notice of residence tax and attach the notice of taxation on the income of their parents.

The housing tax is established in the name of one of the occupants of the dwelling and not on behalf of all roommates. It is therefore up to the recipient of the housing tax to pay and then collect the share of other roommates on his own bank account.

In some municipalities, vacant dwellings are subject to a specific tax, the THLV (for Housing Tax on Vacant Accommodation). Vacant dwellings are properties "unoccupied and empty of furniture, or insufficiently furnished to permit occupancy" for at least 2 years from 1 January of the tax year.

Parking is considered a dependency of the residence. It is therefore taken into account in the calculation of the housing tax.

When does the housing tax arrive? Every year, housing taxes arrive in mailboxes in early fall, between late September and early November. In paper or electronic version, the tax notices are available approximately 3 weeks before the payment deadline (see below). The documents can be consulted in the secure area on the tax website from the end of September. If the taxpayer has made the choice of 100% electronic, he receives an email that warns him of the arrival of his opinion in his particular space.

The deadline for payment of the 2018 housing tax and the TV fee is set at Friday, November 15, 2019. Taxpayers who pay their housing tax on the Internet, they had until Wednesday, November 20, 2019. If they opt for the levy due their 2019 housing tax, the persons concerned by this local tax must adhere before October 31, 2019.

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