In addition to purchases, bills, and rents, the housing tax is one of the mandatory expenses to be managed properly in the context of a shared accommodation.
Housing Tax: What Is It?
The housing tax is a tax that applies to each occupant of a dwelling. The person occupying a dwelling from January 1st is required to pay this tax for the past year. The amount of the housing tax to be paid is calculated based on the rental value of the property. In cases where income is relatively low, the amount to be paid is capped. The payment of the housing tax in the case of shared accommodation must be made in a single transaction, between October and December of each year, depending on the type of accommodation and the payment option chosen. Multiple roommates cannot, under any circumstances, pay a portion of the same housing tax. However, there is still some uncertainty regarding who is responsible for paying the housing tax for shared accommodation.
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Who Must Pay This Housing Tax in a Shared Accommodation?
In the context of shared accommodation, the housing tax is always established in the name of the occupant concerning the premises, starting from January 1st of the relevant year. Indeed, even if the rental agreement is set up in this way, the tenant listed in the lease is solely responsible to the tax administration. Only they receive the payment notice when the time comes. However, it is possible to assign the payment of the housing tax in co-occupancy in the names of two people. In this case, both individuals must submit a request for “joint taxation” to the tax service. When two names appear on the notice, the two affected roommates are considered jointly responsible for the payment.
Is Exemption from the Housing Tax Possible for Roommates?
The answer is yes, an exemption from the housing tax is possible, even in the context of shared accommodation. Obviously, compliance with certain conditions is mandatory. Among these are those concerning income. Indeed, to benefit from this right in 2017, it is imperative that the reference income tax (RFR) of each roommate does not exceed the set ceiling, which is around 10,708 euros. Since one of the roommates has an RFR above this limit, the exemption from the tax becomes impossible, regardless of the income of the other tenants in the same dwelling.
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What About Housing Tax Relief?
In cases where individuals with low reference income personally file a tax return, housing tax relief for roommates is possible. This relief or reduction in the amount of tax is also called a tax reduction. However, it can only be claimed if the reference income tax of the said tenant does not exceed 25,156 euros. It must also not be subject to wealth tax (ISF).
Regarding the housing tax, in the case of shared accommodation, the property is subject to a single taxation. The tax does not support the distribution of the tax amount among the roommates.