French taxe d’habitation: Who is fully exempt in 2022?

France has gradually been phasing out its taxe d’habitation residents’ tax since 2018, and only 20% of the highest-income households still had to pay it last year.

The remaining payees saw their bills reduced by 30% in 2021, and bills will be cut again by 65% in 2022.

By 2023, no one will pay taxe d’habitation on their main home. Second-home owners are not included in this and will continue to pay the tax.

People with second homes in a zone tendue (an area with housing shortages) may even face rising taxe d’habitation rates as is the case in Paris, Bordeaux or Nice where local officials have increased their part of the rate calculation of the tax by up to 60%, the maximum legally allowed.

How is taxe d’habitation normally calculated?

The rate of taxe d’habitation is decided by the local council but is generally based on the amount that the property could in theory be rented out for its valeur locative cadastrale, and is recalculated each year.

Taxe d’habitation rates are generally higher in towns than in the countryside, but vary greatly between areas.

The sum you pay is also based on your personal situation – income, household composition etc..

In 2020, people paying taxe d’habitation were billed for €326 on average, financial website Tout sur mes finances reports. This is compared to €768 in 2018.

Who is exempt this year?

The income thresholds above which people must continue to pay taxe d’habitation are calculated based on the number of people (‘units’) in the tax household. Two adults would, for example, count as two units, as would one adult and two children (counted as one full and two half units).

One person living alone – equating to one unit – does not need to pay taxe d’habitation if their income is inferior to €28,150 per year. For one person with one dependent child – 1.5 units – the limit would be €36,490.

Two adults living together, perhaps as a married couple without children, will be exempt if they earn less than €44,830.

If your income is only just above these thresholds, you may benefit from a greater reduction to your bill.

If you still pay taxe d’habitation, your bill reduction will depend on your area, property type and revenues.

You can find out whether you are exempt from paying taxe d’habitation using this online simulator, which will ask for your revenu fiscal de référencetaxable income, and the number of person units in your tax household.

Even if you no longer pay taxe d’habitation you will still receive a bill for zero euros. You will also still be required to pay your contribution à l’audiovisuel public TV licence fee unless you are exempt.

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