How to collect taxes on a house less than 2 years old? The latest policy analysis and practical guidance
Recently, the issue of real estate transaction taxes and fees has become a hot topic again, especially "taxes and fees for real estate transactions less than 2 years old" which has triggered widespread discussion. This article combines the hot discussions on the Internet in the past 10 days to sort out the latest policies, calculation methods and pitfall avoidance guidelines for you.
1. Main taxes on real estate transactions less than 2 years old
| tax type | tax rate | Calculate base | collector |
|---|---|---|---|
| value added tax | 5% | Full amount or difference | National tax |
| personal income tax | 1%-3% | Transaction price or verified pricing | local tax |
| Deed tax | 1%-3% | Transaction price | local tax |
| urban maintenance and construction tax | 7% of VAT | VAT amount | local tax |
2. Value-added tax calculation method (latest in 2024)
| Property type | Holding time | Tax calculation method | Remarks |
|---|---|---|---|
| Ordinary residence | <2 years | Transaction price×5% | Except for Beijing, Shanghai, Guangzhou and Shenzhen |
| Extraordinary residence | <2 years | (Transaction price-original value)×5% | Proof of original value required |
| Residential properties in Beijing, Shanghai, Guangzhou and Shenzhen | <2 years | Transaction price×5% | No difference discount |
3. Individual tax collection details
According to the latest responses from local tax bureaus:
| area | Implementation standards | special policy |
|---|---|---|
| Beijing | Transaction price×1% | Only free if you are over 5 years old |
| Shanghai | Approved price×2% | After-sales public housing has discounts |
| Guangzhou | Transaction price×1% | 1.5% for areas above 144㎡ |
| Shenzhen | Difference 20% or 3% | You can choose |
4. Answers to popular questions (highly searched in the past 10 days)
1.How to calculate "2 years or more"?
Calculation is based on the earliest date of real estate certificate registration or deed tax payment certificate, accurate to the day.
2.How is it calculated if the property is inherited/donated and then sold?
Calculated based on the time when the original property rights were obtained, but an additional 20% gift/inheritance tax is required.
3.Calculation of time after a couple changes their name
The new regulations in 2024 clarify that name changes during marriage will not affect the calculation of the holding time and will still be determined based on the initial acquisition time.
5. Typical case analysis
| Case | total price | Holding time | Total taxes and fees |
|---|---|---|---|
| 90㎡ ordinary residence in Beijing | 5 million | 1 year 8 months | 500×(5%+1%+1%)=350,000 |
| Shanghai 120㎡ extraordinary residence | 8 million (original value 6 million) | 1 year | (800-600)×5%+800×2%+800×1.5%=310,000 |
6. Expert advice
1. Plan your funds in advance. Transaction taxes and fees for less than 2 years may account for 7%-10% of the transaction price;
2. Pay attention to the phased policies of local governments. Some cities have tax exemptions for talents purchasing houses;
3. Part of the transaction costs can be saved through the new policy of “transfer with security”.
Note: The data in this article are as of July 2024. The specific implementation is subject to the latest notice from the local tax bureau. It is recommended to consult a professional agency for tax calculation before trading.
check the details
check the details
en
