According to INSEE, property taxes weigh more heavily on modest owners

According to INSEE, property taxes weigh more heavily on modest owners

Property taxes on buildings (including those paid by social landlords and companies) generated €29 billion for local authorities in 2022. Although the distribution of this burden was little known until then, a new base built by INSEE makes it possible to “shed light on this question,” the study notes, even though the available data currently dates back to 2017.

That year, the 17 million households subject to property tax paid 19.2 billion euros, or an average amount of 660 euros per home and 1,100 euros per taxable household. 42% of households are not subject to property tax because they are not owners. In 2017, it represented an average of 0.34% of the gross real estate assets of owner households.


But this ‘apparent percentage’ decreases as the gross real estate wealth of households increases: it is therefore more than 0.5% for households with the lowest real estate wealth, it is around 0.4% for households between the 60th and 90th percentile and then drops to 0.22. % for the 1% of households with the highest real estate assets.

This degression, INSEE underlines, is primarily explained by the fact that households with high real estate assets are more likely to own homes “whose cadastral rental value is low compared to their market value”, or even “obsolete”. ”, such as those of old houses. located in the centers of major cities. Moreover, this heritage is often located in cities where property tax rates are lower than elsewhere. In Île-de-France, for example, the apparent tax rate is 0.09% in Paris, 0.16% in the posh department of Hauts-de-Seine, but 0.42% in Seine-Saint-Denis.

Property taxes ultimately represent 2.5% of disposable income for three-quarters of owner households, but here too the 20% of owners with the lowest incomes spend more than 4% of their disposable income on it, compared to 1.6% for the 1% richest.

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