Property tax in 2021: tax rates, calculation, benefits and deductions

The Russian government has introduced a new standard for calculating taxes on real estate and movable property of individuals in 2021. Now the tax amount is calculated taking into account the market value of the object for which the tax must be paid. The market value of real estate and vehicles is reflected in the cadastre and other official databases, where information about such property of Russian citizens is entered. Dramatic changes in the tax scheme have led to an increase in property taxes for ordinary people. At the same time, the legislator specified the circle of persons who are entitled to benefits when paying such fees.

New approach

The property tax for individuals in Moscow for 2021 has its own calculation features. Firstly, let us remind you that the tax authorities themselves calculate its amount, and then the final amount to be paid is sent as part of a consolidated notification.

Also see “What to do if you receive a tax notice.”

Secondly, 2021 for the tax under consideration is the second tax period in which Moscow calculates property taxes based on the cadastral valuation of capital real estate.

On the territory of Moscow, the cadastral value of capital construction projects was approved by the resolution of the capital city government dated November 21, 2014 No. 688-PP (as amended by resolutions dated December 9, 2014 No. 747-PP, dated December 26, 2016 No. 937-PP and dated September 28, 2017 No. 725- PP).

By law, Moscow sets the basis for calculating property tax in 2017 for each object as its value according to the cadastre. And it, in turn, is listed in the Unified State Register of Real Estate (USRN) as of January 1 (in our case, 2021, which is the tax period). Art. speaks about this. 403 of the Tax Code of the Russian Federation.

The cadastral value of an object is established according to the rules of the legislation on valuation activities. And in particular, the Law of July 29, 1998 No. 135-FZ “On valuation activities in the Russian Federation”.

For more information, see “Cadastral value and property tax for individuals in 2021.”

Based on Article 408 of the Tax Code of the Russian Federation, the amount of tax for the first 4 tax periods from the beginning of the application of the cadastral value to the base for it in the region is calculated taking into account special reducing factors.

Since the start in the capital was given in 2015, property tax for individuals in Moscow for 2021 is paid to the budget taking into account the coefficient of 0.4 (clause 8 of Article 408 of the Tax Code of the Russian Federation).

In essence, the provisions of this paragraph establish a systematic increase in the amount of tax transferred for the previous tax period, calculated according to the inventory value, by the difference between the amounts:

tax based on cadastral value;
inventory value.

This is evidenced by the clarification of the Russian Ministry of Finance dated November 11, 2021 No. 03-05-06-01/66019.

Are there any tax benefits?

There are no changes in the federal list of preferential categories, so those citizens who were exempt from paying this tax do not have to worry - for now they are not obligated to pay it. However, please note that we are talking specifically about the federal list of beneficiaries, since there are also regional benefits, and they can be canceled by local authorities.

As before, pensioners, disabled people, labor veterans, children of war, and liquidators of the Chernobyl accident will not pay property taxes. However, it is worth keeping in mind that beneficiaries are exempt from paying taxes on one property, so if the same pensioner has several apartments, then he will have to pay taxes for all but one of them.

Formula

As a result, Moscow calculates property taxes in 2021 using the following formula:

N2016 = (((KS – KS deduction) × C) – N2014) × K + N2014

Where:

N2016 – the final tax amount calculated for the period 2016;
KS – the value of real estate according to the cadastre, established by the regional authorities of Russia (Moscow);
KScalculation is the permissible amount of reduction in cadastral value in accordance with Art. 403 of the Tax Code of the Russian Federation (calculated using the formula: KS / S object × S deduction);
C – the rate of property tax for individuals (defined by Moscow Law No. 51 dated November 19, 2014 “On the property tax for individuals”;
N2014 – tax amount calculated for 2014;
K is the coefficient for the tax period for 2021 (as mentioned, it is 0.4).

Also see “Property tax for individuals in 2021: The Federal Tax Service is responsible for its calculation.”

What objects are subject to real estate tax

According to the rules in force today, tax is paid on a residential building, apartment, room, cottage, garage and other premises and structures owned by the taxpayer (Article 2 of Law No. 2003-I). From the beginning of 2015, in addition to the specified objects, owned parking spaces, a single real estate complex and an unfinished construction project will be taxed (clauses 3-5 of Article 401 of the Tax Code of the Russian Federation).

As for dachas, they, as in the currently valid Law No. 2003-I, will not be directly named in the list of objects subject to taxation. However, the legislator provided that the tax will be levied on a residential building that is located on a land plot intended for personal subsidiary farming, dacha farming, vegetable gardening, horticulture and individual housing construction (clause 2 of Article 401 of the Tax Code of the Russian Federation).

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Tax calculation is now carried out on the basis of the cadastral value of the property (clause 1 of Article 402 of the Tax Code of the Russian Federation).
State cadastral valuation is carried out by decision of the executive body of the subject and no more often than once every three years. For Moscow, St. Petersburg and Sevastopol, the maximum frequency of assessment has been reduced to two years (Article 24.12 Chapter III.1 of the Federal Law of July 29, 1998 No. 135-FZ “On Valuation Activities in the Russian Federation”, hereinafter referred to as Law No. 135 -FZ). Accordingly, the size of the tax base for property tax cannot change more often. You can find out the cadastral value of your property from the Public Cadastral Map (working in test mode). If the necessary information is not available on this resource, you can send an electronic request to the department to obtain information from the state real estate cadastre.

The response must be sent within five working days (clause 41 of the Procedure for providing information entered into the state real estate cadastre; hereinafter referred to as the Procedure). In this case, the applicant can choose the form of the response independently - either by e-mail (for this you must specify an e-mail address), or on paper (sent by mail to the specified postal address, or sent to any territorial office of the Russian Post on demand) (clause 27 of the Procedure ). In the first case, the state duty for the service will be 150 rubles, in the second – 400 rubles. (a scanned copy of the payment slip must be attached to the request).

Individual taxes: payment deadlines and responsibility

Across the country, taxpayers are required to pay their back taxes for the previous year by December of this year.

In relation to defaulters, regardless of the reason for non-payment (intentional and unintentional, that is, due to ignorance, forgetfulness, etc.), the following actions are applied:

notification of the debtor's employer and collection of debt from wages;
restriction of the debtor’s travel outside the Russian Federation;
going to court and forcibly collecting debt;
imposition of penalties (penalties and fines).

Regarding the last point, you should know that a fine and a fine are not the same thing. If a person recognized as a tax payer is several days late with payment, a certain amount is charged for each day of delay, which is added to the amount of the debt. The penalty interest rate in 2021 is 9.75.

The fine applies to persons who do not consider it necessary to pay this type of tax at all and ignore tax notices. However, when calculating a fine, the reasons for non-payment are taken into account. If the defaulter manages to prove that his delay was unintentional, then the fine will cost him 20% of the amount of the debt. Otherwise you will have to pay twice as much. Stricter legal measures are applied to persistent defaulters, including repossession of housing.

Land tax in 2021: changes and calculation features

So, in order to avoid problems and unpleasant moments, it is better to go to the tax office and inquire about your debt, especially since there is nothing terrible about it. You can also find out the necessary information on the websites (by registering in advance):

Federal Tax Service (through your personal account);
State Services;
Federal Bailiff Service (if judicial enforcement proceedings have already been initiated).

Example of calculating payment for housing

In fact, cadastral recording of value will be disadvantageous for owners of luxury real estate, commercial properties and large-sized housing. Owners of standard apartments will not feel a significant difference in payments.

Example : a standard apartment with a total area of 50 sq.m. is considered. The cost according to the BTI inventory was 186 thousand rubles, according to the cadastre 196 thousand rubles. With both forms of accounting, the coefficient for the housing stock is 0.1%.

196 thousand rubles / 50 = 3920 rubles - the price of one meter according to the cadastre.

3,920 x 20 = 78,400 rubles - the amount of tax deduction for an apartment.

196,000 – 78,400 = 117,600 rubles - the amount is taxable.

117,600 x 0.1% = 117 rubles 60 kopecks - the amount of property tax according to the cadastre. Previously, the owner paid 186 rubles (186,000 x 0.1%) for inventory. The example shows that sometimes cadastral valuation is more profitable for owners of standard housing in a low price range.

How have property tax rates changed?

Tax legislation provides for the following real estate tax rates:

for residential premises, unfinished construction projects (if the designed purpose is a residential building), garages and outbuildings or structures, the area of each of which does not exceed 50 square meters. m and which are located on land plots provided for personal subsidiary farming, dacha farming, vegetable gardening, horticulture or individual housing construction, a tax rate of no more than 0.3 percent of the cadastral value is applied;
for objects included in the list in accordance with paragraph 7 of Art. 378.2 of the Tax Code of the Russian Federation, as well as objects, the cadastral value of each of which exceeds 300 million rubles, a tax rate of no more than two percent of the cadastral value is applied;
for other objects – no more than 0.5%.

For the 15 main categories of taxpayers specified in Art. 407 of the Tax Code of the Russian Federation (including pensioners, disabled people of I and II disability groups, military personnel), tax benefits are preserved, but only for one taxable object of a certain type, not used in business activities (for example, for one of two rooms available to the taxpayer, for one of several parking spaces, etc.). In some cases, additional benefits are provided by municipal regulations: for example, for orphans, large families, etc.

However, each municipality has the right to independently establish differentiated tax rates depending on the cadastral value of the property, its type, location, as well as the type of territorial zones within the boundaries of which the property is located. At the same time, the rate can be reduced to zero, but increased only three times compared to the base rate (clause 3 of Article 406 of the Tax Code of the Russian Federation). You can find out the current rate on the official website of the municipality.

There are several types of territorial zones. These include: residential, public and business, industrial zones, zones of engineering and transport infrastructure, zones of agricultural use, zones of recreational purposes, zones of specially protected territories, special purpose zones, zones of military installations and others (clause 1 of article 35 of the Town Planning Code Code of the Russian Federation).

Some of them, in turn, may include smaller zones. So, for example, residential zones may include: development zones with individual residential buildings, development zones with low-rise residential buildings, development zones with mid-rise residential buildings, development zones with multi-storey residential buildings, residential development zones of other types (Clause 2 of Article 35 of the Town Planning Code of the Russian Federation ).

Where to contact to clarify the cadastral value of a property

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If a taxpayer believes that the cadastral value of his property is seriously different from the market value, he has the right to appeal the results of the cadastral valuation.
You can contact the court or the commission for resolving disputes about the results of determining the cadastral value at the territorial administration of Rosreestr. Individuals, unlike entrepreneurs, do not have to apply to the commission, but directly submit an application to the court (Article 24.18 Chapter III.1 of Law No. 135-FZ). If the property is new and does not have a cadastral value, then to obtain it you need to contact the territorial BTI with an application to call a technical specialist. Along with the application, you must provide the owner's passport and title documents for the property. The specialist will draw up technical and cadastral plans. The result of the assessment will be recorded in the assessment report, and the property owner may ask for an extract from this report.

Keep in mind: information about the cadastral value of an object may be required not only to verify the correctness of property tax calculations, but also in the case of encumbering real estate with a pledge, when dividing an inheritance and calculating personal income tax when donating property.

This innovation affected owners of taxable properties (residential houses, apartments, rooms, garages, other buildings, structures, structures, premises) located on the territory of the Republics of Kalmykia, Khakassia, Kabardino-Balkarian, Chechen and Chuvash Republics, Stavropol and Kamchatka Territories, Belgorod, Bryansk, Vologda, Voronezh, Kaliningrad, Kemerovo, Kirov, Kostroma, Kursk, Leningrad, Omsk, Tula, Chelyabinsk regions, St. Petersburg.

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8.8 million tax notices were sent to all of them by mail, 2.1 million notices were posted in the taxpayer’s personal account (with the exception of the Belgorod, Kaliningrad and Kirov regions, where tax notices will be sent as soon as possible) time).
Now tax notices indicate the amount of tax taking into account tax deductions (tax-free cadastral value for rooms - 10 sq.m., apartments - 20 sq.m., residential buildings - 50 sq.m.) and a reduction factor of 0.2 for the first period of application new tax calculation procedure. An exception is made for administrative, business and commercial facilities included in the lists compiled by authorized executive authorities (clause 7 of Article 378.2 of the Tax Code of the Russian Federation).