How to pay taxes when buying a house: The latest guide for 2024
With the recent adjustments to real estate policies and market fluctuations, paying taxes on buying a house has become the focus of many home buyers. This article will combine the hot topics on the Internet in the past 10 days to provide you with a detailed analysis of the types, calculation methods and preferential policies of taxes and fees involved in buying a house, and help you plan the cost of buying a house reasonably.
1. Main taxes involved in buying a house
According to current policies, the taxes and fees that need to be paid during the home purchase process mainly include the following categories:
| tax type | Collection objects | Tax rate/standard | Remarks |
|---|---|---|---|
| Deed tax | buyer | 1%-3% | If the area of the first house is ≤90㎡, the rate is 1%; if the area is >90m2, the rate is 1.5%; for the second house, the rate is 3%. |
| value added tax | seller | 5.3% (including additional) | Exemption for 2 years (difference for non-ordinary residences) |
| personal income tax | seller | 1% or 20% difference | The only exemption for those over five years old |
| stamp duty | Both sides | 0.05% | Temporarily exempt from tax collection in 2024 |
2. Interpretation of hot policies (updated in the past 10 days)
1.Many places have relaxed the standards for identifying first-time home owners.: Nanjing, Wuhan and other cities have implemented the "recognize the house but not the loan" policy. If you don't have a house in your name, you will pay taxes on the first home.
2.Tax refund preferential policy continues: In 2024, the personal income tax refund policy for housing exchanges will continue to be implemented. Individual income tax will be refunded when selling old and buying new.
3.Controversy over taxes on housing transactions in school districts: Housing in a school district in Xicheng District, Beijing, resulted in high personal taxes due to "not being the only one", triggering discussions across the Internet.
3. Specific calculation cases
| Property type | Total price (10,000 yuan) | Buyer taxes | seller tax | Total taxes |
|---|---|---|---|---|
| First new house of 90㎡ | 300 | 30,000 (1% deed tax) | 0 | 30,000 |
| Second set of 120㎡ second-hand house | 500 | 150,000 (3% deed tax) | 265,000 (VAT) + 50,000 (Personal Tax) | 465,000 |
| The only second-hand house in Manwu | 400 | 60,000 (1.5% deed tax) | 0 | 60,000 |
4. Tax Saving Tips
1.Make reasonable use of "Full Five Only": When purchasing a house, give priority to properties that meet the exemption conditions and save 5%-20% in taxes.
2.Pay attention to local subsidy policies: Shenzhen, Hangzhou and other places have deed tax subsidies for talents purchasing houses, up to 50%.
3.Staged transaction planning: For improvement needs, you can enjoy tax refund benefits by selling first and then buying.
4.Notary transaction risks: Recently, there have been many tax disputes caused by "notarization first and then transfer", and it is recommended to supervise the funds.
5. Frequently Asked Questions
Q: Do couples need to pay tax when changing their name?
A: During the marriage, the property name change is exempt from deed tax and only costs the cost of production.
Q: How to calculate taxes after inheriting a property and then selling it?
A: Based on the original purchase time before inheritance, whether it is five years or less, the individual tax will be levied at 20% of the difference.
Q: Who will bear the tax on the foreclosed property?
A: Usually the buyer is responsible for all taxes and fees, and the details are subject to the auction announcement.
Recent hot spots show that with the arrival of the "Golden Nine and Silver Ten" home buying season, tax authorities in many places have opened green channels, and it is recommended to check the latest policies through official channels (such as the "Personal Income Tax APP") before purchasing a home. Reasonable planning of tax expenditures can save up to hundreds of thousands of dollars in home purchase costs.
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