In the recent past, there has been a great deal of news about property taxes, and a lot of people are saying, "what kind of house needs to pay taxes?" do i have two houses that are taxed? Today, we're going to make this matter clear。
How the hell did you get the property tax
Property taxes are not new. As early as 1986, the provisional regulations of the people's republic of china on housing taxes were issued and have been in force since 1 october of that year. The tax is an annual property tax levied on the home and is levied on the owner。
Many people might wonder, "why have i never paid a real estate tax?" this is because the regulations make it clear that all non-business properties owned by individuals are exempt from property tax. In other words, if your house is for your own business or rent, it's basically free of the tax。
Under what circumstances does your house pay taxes
There is a clear scope for the collection of property taxes, which are aimed mainly at properties in cities, counties, organized towns and industrial mining areas. Houses in rural areas are outside this collection。
So, which specific houses are taxed? In two main cases:
One is the operation of property, such as a company-owned plant, office building, etc. The tax rate for such properties is 1. 2 per cent, calculated on the basis of the original value of the property less 10-30 per cent at a time。
The other is rented property, which is taxed at 12 per cent of rental income. There's a good policy here for a private landlord. With effect from 1 january 2001, residential housing rented by individuals at market prices for residential use may be temporarily reduced by a 4 per cent tax rate。
Shanghai and chongqing pilot: what is the personal housing tax
In 2011, shanghai and chongqing began piloting a property tax on some individual homes, which provides us with a good reference。
For example, in the above-mentioned sea, the property tax is levied in two main categories: the second and more dwellings purchased by families living in shanghai; and the new dwellings purchased by non-shanghai families。
Shanghai has a duty-free area of 60 square metres per person. For example, a three-member family has a duty-free home of 180 square metres. If the family owns two housing units totalling 200 square metres, the excess of 20 square metres is subject to property tax。
Shanghai tax rates are divided into two classes: 0. 4 per cent and 0. 6 per cent. The tax rate is temporarily reduced to 0. 4 per cent, when the market price per square metre of taxable housing is twice as high as the average sales price for new commercial housing in the previous year。
The chongqing pilot programme, on the other hand, focused on the collection of stocks, the additional single house and the new purchase of high-end commodity houses at a rate of 0. 5 to 1. 2 per cent. It is worth noting that, in september 2023, chongqing adjusted its housing tax policy to read “second and more general housing units purchased in chongqing city by persons with no household registration, no business, no job” and to mean that the first flat is no longer taxed。
How many houses are going to be targeted
This is a matter of great concern. According to the current policy, ordinary families are not taxed on their own dwellings. What is really possible is that:
If you have two or more dwellings in shanghai and have an excess of more than 60 square metres per person, you may have to pay a property tax。
If you own a single villa or a high-end commodity house in chongqing, it may also be within the tax limits。
If you have rented property, you are required to pay property tax on the basis of rental income。
The property tax is payable if you own the property used to operate, such as shops, office buildings, etc。
It is noteworthy that between 2024 and 2025, shanghai and chongqing eased the policy of collecting property taxes. In shanghai, tax exemptions and concessions have been introduced for eligible non-household residents; chongqing has made it clear that “outside the city” buys ordinary homes in chongqing, regardless of the number of units that are not subject to property tax. This is the opposite of what many fear is “increasing”。
Property tax and real estate tax: difference between word and word
Many people tend to confuse “property taxes” with “real estate taxes”, which are quite different。
The real estate tax is a single tax that has been in place for many years, mainly for the house itself。
The real estate tax, on the other hand, is a comprehensive concept that includes a general description of the types of taxes levied on property and land. Although the real estate tax has been under discussion for many years, it has not yet been introduced nationwide, except for the shanghai and chongqing pilots。
In the light of the current situation, full implementation of the real estate tax may take longer, given the real estate market situation。
How will future property taxes develop
The future direction of the property tax may be characterized by the following:
A reasonable exemption may be created to ensure that basic housing needs are not taxed。
Progressive tax rates may be used, i. E. Higher the number of houses, but low or tax-free for basic housing needs。
Pilot cities may continue to optimize policies to balance local financial needs with healthy development in the real estate market。
The rural housing base and the housing rate on it are not taxed and the basic rights and interests of farmers are guaranteed。
Concluding remarks: rationalizing property taxes
The property tax is essentially a property tax whose core function is to regulate the allocation of resources and promote social equity. From the pilot experiences of shanghai and chongqing, the protection of basic housing needs has been adequately considered in policy design。
For the majority of households, housing that meets their own needs does not need to worry about property taxes. The true regulatory targets are multiple homeowners, high-end commodity houses and investment purchases。
The real estate market is currently in a period of restructuring, and official adjustments to the real estate tax policy have been made with greater caution and even a moderate trend towards liberalization. This reflects the deliberate consideration of policymakers in balancing interests。
In the future, with the gradual stabilization and maturity of the real estate market, the property tax system will be improved, but the core objective will not change - to guarantee the basic housing needs of the population while promoting the long-term healthy development of the real estate market。
What do you think about the real estate tax? What's your family's status? Welcome to sharing your thoughts and circumstances。
