Property tax : who pays it and how is it calculated?

Property tax is payable by the person who owns or has usufruct of a built property on 1 January of the tax year. For many owners, landlords or second-home owners on the Alabaster Coast, the key question is: who receives the notice, for which properties, and in which cases can an exemption, reduction or relief apply.

Property tax on built properties, or TFPB, primarily concerns houses, flats and other buildings classified as built properties. According to Service-Public.fr, exemptions, reductions or reliefs exist in certain cases, but they are subject to specific conditions relating either to the property or to the owner’s situation.

Key points to remember

• TFPB is payable if you are the owner or usufructuary of a built property on 1 January of the tax year.
• It applies in particular to houses, flats, professional buildings, industrial or commercial premises, and certain immediate and essential outbuildings.
• The notice brings together the property tax and the tax on household waste collection (TEOM).
• A let property remains taxed in the name of the owner or usufructuary liable on 1 January, even if the household waste collection tax can be reimbursed by the tenant as a recoverable charge.
• Depending on the circumstances, the exemption may last 2, 5 or 15 years, with procedures and deadlines specific to each situation.

Who pays the property tax

Property tax on built properties is payable by the person who holds the property on 1 January. This may be the owner or the usufructuary.

For a rented property, the person liable remains the owner or usufructuary on 1 January. The fact that a tenant occupies the premises does not transfer the property tax. However, TEOM shown on the same notice may be recovered from the tenant, as it forms part of the recoverable charges.

Another situation to be aware of: when a property has been sold as a life annuity with a right of use reserved for the seller, the authorities state that the land tax is payable each year by the buyer.

Which properties are concerned

The tax concerns built properties. To fall into this category, the property must meet 2 conditions:

• be attached to the ground in such a way that moving it would require its destruction;
• have the characteristics of a genuine building, including its inseparable elements.

The following are notably subject to property tax:

• dwellings, such as a house or flat;
• the ground of buildings and land forming an essential and immediate dependency of a construction ;
• a boat permanently installed and fitted out for residential, commercial or industrial use, including where it is only held in place by moorings;
• commercial, industrial or professional buildings ;
• industrial or commercial premises, such as a shed, workshop or tank;
• certain plots of land for commercial or industrial use, or used, under certain conditions, for advertising.

Conversely, mobile cabins and caravans are exempt, except where they are secured by masonry fixings.

How council tax is calculated

The TFPB tax base is equal to half the property's cadastral rental value: this value is reduced by a 50 % allowance. The amount of tax is obtained by applying the rates voted by local authorities to this base. Exemptions, reductions or relief may then apply depending on the property or the owner's circumstances.

What the tax assessment notice really includes

This point matters to landlords. For a year-long rental, the household waste collection tax may be recharged to the tenant as part of the service charges. Cabinet Soudey offers properties to rent year-round and, with its sister company PCG Gestion, property management from Dieppe to Saint-Valery-en-Caux for residential leases.

The main exemptions relating to the property

New construction, reconstruction or addition to a construction

For a building used for residential purposes, the exemption lasts 2 years from 1 January of the year following completion of the works. It does not apply to TEOM. However, the municipality or EPCI may reduce this exemption by means of a special resolution. The declaration must be made in the “Property” section within 90 days of completion of the works, or submitted to the tax office if online filing is not possible.

For a building other than one used for residential purposes, the exemption is partial for 2 years from 1 January of the year following completion of the works. The authorities advise checking with the tax office whether the construction is covered.

New property with a high level of energy efficiency

In certain municipalities, a 50 to 100 % exemption may be granted for 5 years from the year following completion of the construction. It depends on a decision by the municipality or EPCI, and a declaration must be submitted to the tax office with proof of energy and environmental performance.

Other situations provided for by the authorities

The official page also mentions:

• the dwelling under a rent-to-own agreement, with a possible exemption for 15 years from the year following completion ;
• the dwelling acquired through a real solidarity lease, with a possible allowance for the duration of the lease if the municipality or intermunicipal body has decided this.

Exemptions and reductions linked to the owner's circumstances

For the main residence, the authorities cover several specific situations. This may include an exemption for someone receiving Aspa or Asi, a possible exemption for someone receiving AAH if their corrected reference taxable income remains below the applicable thresholds, a reduction of €100 for certain people over 65 and under 75 on 1 January 2026 subject to income conditions, or a possible exemption for certain people over 75 on 1 January 2026 subject to income conditions.

The caps depend on the composition of the tax household and differ according to whether the property is located in mainland France or overseas France. The safest option is to check your situation using the official property tax information sheet or by contacting your tax office.

In several of these cases, if the entitlement to an exemption or reduction is lost, it may be extended for 2 years, then replaced during the following 2 years by an allowance on the rental value—two-thirds for 1 year, then one-third in the final year.

Things not to forget

• After a new build or an addition to a residential building: declaration within 90 days following completion of the works.
• For a real joint and several lease: submission of a declaration and a copy of the lease before 1 January of the year following the signing of the BRS.
• In the event of changes concerning your property: update your details in your account on impots.gouv.fr to avoid tax errors.

If in doubt about the nature of the property, its tax classification or its value in the context of an inheritance, gift or division, a property valuation at market value may also be useful in addition to the tax formalities.

To find the useful local references in Seine-Maritime, you can also consult our page on property tax rates in Seine-Maritime.

Frequently asked questions