How to calculate property transfer tax
Real estate transfer is a necessary procedure when buying, selling or gifting real estate, and the tax calculation involved in the transfer process is the focus of many people's attention. This article will explain in detail the calculation method of real estate transfer tax to help you better understand the related costs.
1. Main taxes and fees for real estate transfer
The taxes and fees involved in real estate transfer mainly include deed tax, personal income tax, value-added tax, stamp duty, etc. The calculation method of specific taxes and fees varies depending on the nature of the house, the transaction method (sale, sale or gift) and regional policies. Here is a detailed description of common taxes and fees:
| Tax name | Calculation method | Applicable conditions |
|---|---|---|
| Deed tax | 1%-3% | Based on the area of the house and whether it is the only home for the family |
| personal income tax | 1% or 20% difference | The only exemption is for those who are over five years old, otherwise the tax will be 1% or 20% of the difference. |
| value added tax | 5.6% | The real estate certificate is less than 2 years old |
| stamp duty | 0.05% | Buyer and seller each pay 0.05% |
2. Specific calculation of deed tax
Deed tax is one of the most important taxes in real estate transfer. It is calculated as follows:
| House nature | area | Deed tax rate |
|---|---|---|
| The family's only home | ≤90㎡ | 1% |
| The family's only home | ＞90㎡ | 1.5% |
| Non-family only residence | No limit | 3% |
3. Calculation of personal income tax
The calculation of personal income tax is divided into two situations:
1.The only one out of five: If the real estate certificate has been held for more than 5 years and it is the family’s only residence, personal income tax is exempted.
2.The only one who is not full of five:
| Calculation method | tax rate |
|---|---|
| 1% based on transaction price | 1% |
| 20% of the difference | 20% |
Note: The difference refers to the transaction price minus the original purchase price and reasonable expenses.
4. Calculation of value-added tax
The value-added tax mainly applies to properties whose real estate certificates are less than 2 years old, and the tax rate is 5.6%. The calculation formula is:
VAT = transaction price × 5.6%
If the real estate certificate is more than 2 years old, it is exempt from VAT.
5. Other expenses
In addition to the major taxes and fees mentioned above, property transfer may also involve the following fees:
| Fee name | Amount |
|---|---|
| registration fee | 80 yuan |
| Appraisal fee | 0.1%-0.5% |
| agency fee | 1%-2% |
6. Case analysis
Assume that a second-hand house with an area of 100 square meters and a transaction price of 2 million yuan has an original purchase price of 1.5 million yuan and a real estate certificate of 3 years but it is not the family's only residence. Taxes are calculated as follows:
| Tax name | Calculation method | Amount |
|---|---|---|
| Deed tax | 2 million × 3% | 60,000 yuan |
| personal income tax | 2 million × 1% | 20,000 yuan |
| value added tax | exempt from tax | 0 yuan |
| stamp duty | 2 million×0.05%×2 | 2000 yuan |
| registration fee | fixed fee | 80 yuan |
| total | - | 82,080 yuan |
7. Summary
The calculation of real estate transfer tax involves multiple factors, including the nature of the house, area, holding period, etc. In actual operations, it is recommended to consult a professional agency or tax department to ensure the accuracy of tax calculations. Through the analysis of this article, I hope it can help you better understand the calculation method of real estate transfer tax and provide a reference for your real estate transactions.
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