Depending on your age, income or other factors you may be entitled to an exemption or reduction in your local rates in France.

All owners of property in France are liable to two local property taxes, or rates – the taxe d’habitation and the taxe foncière.

In certain circumstances households are eligible for a reduction in the level of the taxes, or complete exemption from them.

Different rules apply to each tax, although in each case the main income thresholds that apply for complete exemption, for those eligible on grounds of low income, are the same.

In the case of a single person, the maximum net taxable income (revenu fiscal de référence) to be eligible for complete exemption from the taxes in 2014 is €10,663, as notified on your French income tax notice for income earned in 2013. In the case of a couple the threshold is €16,311.

These limits are higher if you have children or other dependent adults in the family.

However, only certain household types are eligible for complete exemption. So even though you may qualify on grounds of income, you may still not qualify for complete exemption.

Taxe d'Habitation

In relation to the taxe d'habitation the groups who qualify for exemption, provided they meet the above income thresholds, are:

• those over 60 years of age,
  
• disabled persons with entitlement to certain benefits,
  
• those in receipt of Revenu de solidarité active de base (RSA),

• widowed persons irrespective age.

Accordingly, if you do not fall into one of the above eligible groups you cannot claim complete exemption from the taxe d'habitation, whatever the level of your income.

Nevertheless, if you do not fall into one of the qualifying groups, but your income is less than €24,005 per year for a single person, rising to €35,445 for a couple (with further increases for children), you receive a reduction in the level of the tax, the precise amount of which will depend on the level of your income and family circumstances.

Properties that are not occupied as they are unfit for human habitation, or in the process of major renovation, are not subject to the tax, although you need to advise the tax office, with a supporting letter from the local mairie.

Taxe Foncière

In relation to the taxe foncière the grounds for exemption due to low income are narrower.

Thus, the main groups eligible are those of at least 75 years of age, or disabled persons, provided they also qualify on income grounds.

The same income thresholds for exemption to the taxe d'habitation are used, although the reduction in tax that is granted for the tax d'habitation for those on higher incomes does not apply in relation to the taxe foncière.

There are also other exemptions and reductions in the taxe foncière that do not depend on the level of your income, eg, new build, extensions, energy conservation works, which are subject to particular rules and procedures. You can read more about them on the link below.

Procedure

These reductions and exemptions are carried out automatically each year by your local tax office on the basis of your income tax return.

If you think you have missed out, pop along to your local tax office to discuss your circumstances. This applies particularly to disabled persons, where we have found that the rules are subject to differing local interpretation.