Housing tax: do not rush to decrease your monthly payment!

you don't have to rush on the portal of income tax: the next few weeks could still reserve some surprises. Decryption.

The 8th of December last, Bercy announced the good news to the French public: they can simulate their gains in purchasing power and start to lower the monthly payments of their property tax on the site Impots.gouv.fr. Only problem: the reform is still not passed by the Parliament. Of course, this should be done by the 21st of December, but all questions raised by the measure are not addressed. Hence our call to the slowness.

The housing tax will be abolished from next year ?

No, the reform of the housing tax is spread out over three years. It aims to reduce the local tax paid by the owners and tenants of first 30% in 2018, and then to 65% in 2019, to be finally removed completely in 2020. But be careful, all the French are not concerned

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"Have to be full of this new relief to people whose income tax reference (RFR) does not exceed 27 000 € for a single person plus € 8,000 for each of the two half-units the following, is 43 000 € for a couple, then 6 000 € per half-share additional, details Jean-Pierre Dupré, drafting tax of Editions Francis Lefebvre.

For those whose income tax reference range between 27 000 and € 28 000 € for a single person, plus 8 500 € for each of the two half-following units, or 45 000 € for a couple, then 6 000 € per half-share, the rate of the reduction decreases as the level of income of the household is approaching the upper limit." On the other hand, there is no change for the 22% of taxpayers with incomes above these thresholds.

Attention ! This measure is loudly announced by the government, even before they have been passed, might never see the light of day if the Constitutional Council repeals it (see below).

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How to take advantage of the 30% decline in 2018?

If you are eligible to the extent and wage, you can already reduce to 30% your payments. Useless, however, you rush on the simulator of the taxes. No more application is possible to change the levy as soon as January.

In practice, you have until January 31 to take you to your personal space on the site Impots.gouv.fr and ask the modulation of your monthly deductions. You can also contact your local public finances. The decrease will be effective as from 15 February.

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Our advice: wait for the online calculator of income tax, which will occur around mid-January, souffle-t-on the side of fiscal services. This will allow you to estimate your income tax reference for the 2017 and as well whether or not you will benefit from the measure. Because if you take into account your income tax reference of 2016, in case of increase of income or decrease your number of share during the year 2017, you are not immune from error.

penalties apply in the case of a calculation error?

No, unlike income tax where any error to the decrease of more than 20% leads to the application of a penalty of 10%, here nothing comparable. Because the property tax is to be paid at once by the end of the year. As a result, if you press by mistake, your monthly payments of 30% while, in the end you are not right, you risk nothing, confirms to the general directorate of public Finances. In the event of a calculation error, however, says Christophe Céron, national secretary of the Union Solidaires Finances Publiquesn catch up to the increase will be carried out at the end of the year, when the final amount of the housing tax will be known, which could present cash-flow problems for some taxpayers."

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property Tax

The Senate voted for the removal of the housing tax, but in a longer period to Remove the property tax for 80% of households by 2020, 100% in 2023 property Tax : the wrath of the departments

can it still freak out?

The mayors of France have called for its cancellation, the senators have rejected, and an appeal to the constitutional Council, based on the violation of the principle of equality before the tax, should be filed. To be clear, the waiver of the housing tax that everyone talks about for months could make pschitt and never see the light of day. Therefore, it is urgent to wait before rushing to lower your monthly payments!