In the second-hand house trade in 2026, the two biggest savings you could make were a reduction in the vat from 5 per cent to 3 per cent, and a full refund of the replacement tax. A house of 5 million and less than two years old could save more than 100,000. Together with tax concessions and local subsidies, there are four main elements of full-process relief。
Two points straight down, two years straight
With effect from 1 may 2026, the value-added tax on housing for less than two years was reduced from 5 per cent to 3 per cent, with the base figure being the sale price of the house. After two years of housing, the entire country was exempted from admission and no distinction was made between ordinary and non-ordinary dwellings, and the tax provision on the difference that existed before the far north had been abolished。
Five million houses less than two years old, vat reduced from 250,000 to 150,000 and province 100,000. Two years of house, nothing。
I'll buy you a new house
During the period from 1 january 2026 to 31 december 2027, one year after the sale of the house, the house was purchased with the city and a tax was paid. How much do i owe for the new house
Key conditions: the sale and purchase of a house must be in the same city and must be a commercial dwelling and the apartment does not count. At the time of the application, a sales contract is submitted to the tax office for the sale of premises, and an information-sharing review is conducted between the tax and construction departments。
Taxes by area and set, 1% minimum
The tax credit was continued in 2026, by area and number of housing units in households:
The family includes buyers, spouses and minor children。
Land value added tax is waived, and part of the population can be reduced
Individual transfers of housing, with a temporary exemption from land value added tax. In addition, priority groups and ex-soldiers who are self-employed can deduct vat, city building tax, education surcharges, etc. From the rmb 24,000 per year for three years。
Additional local benefits up to 30,000 in guangzhou
In addition to the national policy, some municipalities have superimposed local subsidies:
Make a sum
In the case of 5 million dwellings for less than 2 years, for example, 100,000 new houses were replaced by vat, the full amount of each tax was refunded (assuming 1 per cent tax rate of 50,000), and the amount of the tax was calculated at 1 per cent (0. 3 per cent without benefit of 180,000 and 120,000 in the province). With a subsidy of 30,000 from guangzhou, the total relief could be over 300,000。
The core logic is one: two-year-old houses are sold first, bought quickly within a year, operated in the same city, with minimal taxes and fees。
