Housing tax on main residences: 30% exemption for households still liable
Article 16 of the 2020 Finance Act organises the end of the housing tax on main residences for households that had not benefited from the relief reserved for about 80% of households between 2018 and 2020. For these taxpayers, it creates a 30% exemption from the housing tax on the main residence in 2021 (new III of Article 1414 C of the General Tax Code), raised to 65% in 2022, before full abolition in 2023. In 2021 and 2022, the proceeds of this tax are collected by the State rather than by municipalities and inter-municipal bodies, which receive other resources in compensation.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
Households still paying housing tax on their main residence (about 20% of households) see their 2021 bill reduced by 30%. According to the Senate finance committee report on the 2020 budget bill, continuing the relief for these households costs the State €2.6bn in 2021, €4.6bn in 2022 and €7.9bn in 2023.
Official references
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration
President of the Republic signature
Publication au Journal officiel
Possible referral to Constitutional Council
Décision de conformité / censure partielle
National Assembly has the final say
Si Ă©chec CMP
Debate and vote
Council of Ministers
Validation interne