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Since the fall of 2021, all apartment owners began to receive notifications about personal property tax , calculated according to the new rules. And the amount of this tax became much higher than what was levied in previous years. But there are also tax breaks in the new rules. Let's look at everything in order.
First of all, one should not confuse the tax on real estate (apartment) and the income tax on the sale of real estate (apartment).
In the first case, we are talking about a regular annual tax that each apartment owner pays to the state for owning real estate. In the second case, we are talking about a one-time payment of tax, which the owner pays to the state on the income received from the sale of his real estate.
Here we are considering the first option - property tax for apartment owners .
As for the calculation, calculation and payment of tax on the sale of an apartment, this is discussed in a separate Glossary article at the link. How to evaluate your apartment for sale? Evaluation factors and price calculation method.
Why has the real estate tax for individuals increased since 2021?
From January 1, 2015, amendments were made to the tax legislation of the Russian Federation, to Chapter 32 of the Tax Code of the Russian Federation (“Property Tax for Individuals”). If previously homeowners - individuals - paid real estate tax (on owning an apartment), based on its inventory value according to the BTI assessment, then after the changes, the same tax is calculated from the cadastral value of the apartment (Article 402 of the Tax Code of the Russian Federation). And the cadastral value is as close as possible to the real market value of the apartment, and is several times higher than the previous BTI assessment.
Payment of apartment tax for owners occurs once a year - in the current year (until December 1) for the previous year. That is, the tax, for example, for 2021 is paid in the fall of 2021.
The property tax of individuals on an apartment is paid at the location of this apartment, on the basis of a tax notice , which the owner receives by mail from the local Federal Tax Service inspectorate (in paper form), or electronically in the taxpayer’s personal account on the Federal Tax Service website.
How the purchase and sale of an apartment takes place, and whether a realtor is needed for this - see this article.
Tax notice
For individuals, property tax is calculated by the tax service, after which it sends a tax notice to their place of residence, which contains information about the amount of tax, the deadline for its payment, etc.
Tax notices in 2021 will be sent to residents of Russia between April and November
, but no later than 30 days before the payment date.
Many real estate owners mistakenly believe that if they have not received a notice from the tax service, then they do not need to pay property tax. This is wrong
.
On January 1, 2015, a law came into force according to which taxpayers, in the event of non-receipt of tax notices, are required to independently report
to the Federal Tax Service about the availability of real estate assets, as well as vehicles.
The above message, accompanied by copies of title documents, must be submitted to the Federal Tax Service in respect of each taxable object once before December 31 of the following year. For example, if an apartment was purchased in 2021, but no notifications were received regarding it, then information must be provided to the Federal Tax Service by December 31.
Therefore, if you do not receive a notification, the Federal Tax Service recommends taking the initiative and contacting the inspectorate in person (you can use this service to make an appointment online).
If a citizen independently reports that he has a vehicle for which tax has not been assessed, the payment will be calculated for the year in which the specified report was submitted. However, this condition only applies if the tax office did not have information about the reported object. If the payment notice was not sent for other reasons (for example, the taxpayer’s address was incorrectly indicated, or it was lost in the mail), then the calculation will be made for all three years.
For failure to submit such a message within the prescribed period, the citizen will be held accountable under clause 3 of Art. 129.1 and was fined in the amount of 20% of the unpaid tax amount for the object for which he did not submit a report.
Tax rate on property of individuals
The basic rate of property tax for individuals for apartments remained the same, that is, equal to 0.1% (clause 2, article 406 of the Tax Code of the Russian Federation). Only the tax base itself has changed.
At the same time, the law allows local authorities in municipalities of the constituent entities of the Russian Federation to independently set tax rates for their subordinate territories, but within the framework specified by the Tax Code. If local authorities have not made any decision regarding local tax rates the basic tax rate specified in the code (see above) applies
For Moscow, for example, tax rates for apartments are determined by local authorities as follows:
- if the cadastral value of the apartment does not exceed 10 million rubles. (inclusive), then the tax rate applies 0,1%;
- from 10 to 20 million rubles. (inclusive) – tax rate 0,15%;
- from 20 to 50 million rubles. (inclusive) – tax rate 0,2%;
- over 50 million rubles – tax rate 0,3%.
Current real estate tax rates personal property tax benefits
For other constituent entities of the Russian Federation and municipalities within them, property tax rates for individuals established by the local executive authority, as well as local tax benefits can be found in a special reference book on the website of the Federal Tax Service of Russia - here.
Calculator for calculating property tax for individuals (apartment) - see below in the article, follow the link.
In what cases you can avoid paying tax when selling an apartment - see here.
How is property tax calculated for apartment owners?
The introduced innovations provide that the tax increase due to changes in the tax base will occur gradually, and not immediately. In other words, legislators gave us a four-year “transition period”, during which the amount of the new property tax will gradually increase to its maximum value (Article 408, Tax Code of the Russian Federation). What does it look like?
Literally like this:
- in 2021 we pay only 20% of the tax amount (for 2015) calculated based on the cadastral value of the apartment, plus 80% of the tax amount calculated the old fashioned way (according to the BTI estimate).
- in 2021 we pay (for 2021) already 40% of the cadastre, and 60% of the BTI assessment;
- in 2021 we pay (for 2021) 60% from the cadastre, and 40% from the BTI assessment;
- in 2021 we pay (for 2021) 80% from the cadastre, and 20% from the BTI assessment.
And only from 2021, property tax for individuals will be charged in full on the amount of the cadastral value of the apartment. True, in 2021 some of these rules have already been changed (see below).
What are the risks of buying a privatized apartment? Nuances of privatization. What the Buyer needs to know – see the link in the Glossary.
Amendments to the law!
Another surprise! In August 2021, a law was introduced that reduces the growing tax burden on citizens. Our Duma clerks thought and thought and decided that it was still too much for an ordinary person to pay such amounts of tax for their apartment. And they refused to apply the next coefficient of 80%, starting from the 4th year (see list above) of using the cadastral value for paying property (apartment) tax for individuals. Confirmation is here.
Therefore, from 2021 the above coefficients no longer apply.
At the same time, the law introduced a 10% limit on the annual increase in the amount of tax calculated at the cadastral value. That is, if the amount of tax for a certain tax period (year) exceeds the amount of tax for the previous year by more than 10%, then the amount of the previous tax + 10% is due for payment (clause 8.1, article 408, Tax Code of the Russian Federation).
And one more pleasant innovation in the same law. If, for example, property (apartment) tax was calculated in previous years based on an erroneous cadastral value , which was later challenged , then the recalculation occurs not from the moment the application for challenge was filed, but from the date the application of the erroneous cadastral value began.
How can the Buyer of an apartment return personal income tax? What is the procedure here? See the link.
Are there any benefits for real estate taxes?
Eat! For all owners of apartments and rooms, legislators have provided a pleasant benefit (Article 403 of the Tax Code of the Russian Federation). Paragraph 3 of this article states that when determining the tax base for an apartment, 20 square meters of the total area of the apartment are NOT taxed (i.e., deducted from the tax base). For a room this deduction is 10 sq. m.
Moreover, local authorities are given the authority to increase the size of this benefit at their discretion (they cannot be reduced).
In other words, when calculating the tax on real estate in the form of an apartment or room, the cadastral value is 20 sq. m. m. for an apartment or 10 sq. m. m. for a room - not taken into account.
In addition, all existing tax benefits for certain categories of citizens , which include veterans of the Great Patriotic War and other military operations, disabled people of the 1st and 2nd groups, some categories of military personnel and members of their families, pensioners and some categories of other citizens. The full list of categories of beneficiaries is listed in Article 407 of the Tax Code of the Russian Federation.
This benefit for them is that they are completely exempt from paying property tax for individuals , provided that they do not use their apartment for business purposes (clause 2 of Article 407 of the Tax Code of the Russian Federation). And they can apply this benefit to only one apartment that they own.
To receive a tax benefit, you need to provide the local tax office with an appropriate application and documents confirming your right to the benefit. You can read more about applying for benefits for pensioners at the link provided.
If a person owns two or more apartments and rooms , then a tax deduction of 20 and 10 square meters. m., accordingly, applies to each property (see explanations on this matter on the Federal Tax Service website - here).
In this case, the same deduction (for example, 20 sq. m.) applies to one property, regardless of the number of owners of this property.
Is it possible to get a tax deduction for a child when buying an apartment if the child has a share of the property - see this article.
To calculate property taxes, it is not necessary to contact the tax office. Let’s figure out what formula and with what reservations you can find out it yourself
What do you have to pay for?
Real estate is not just a house or apartment. The tax will have to be paid for the garage, dorm room and parking space purchased as property. Commercial real estate is also subject to tax, as are country houses, outbuildings, warehouses, and unfinished objects. Even sea vessels and space objects are classified as real estate, so if you are the proud owner of the latter, you will have to periodically visit the tax office. The calculation will be made individually for each property, regardless of how many apartments, yachts and spaceships you have.
What does the cost depend on and how does it change?
The tax service takes into account the cadastral value - the amount calculated by the cadastral chamber. It changes every three years in all cities except Moscow, Sevastopol and St. Petersburg. In the last three settlements, the price is revised every two years due to dynamic changes in the real estate market. The amount varies depending on the infrastructure of the area, the wear and tear of the house, and the availability of similar offers for sale. If the value calculated by the cadastral chamber does not suit you, you can go to court for recalculation. To use the real estate tax formula, you need to find out the cadastral and inventory value of the property, as well as the rate and benefits you are entitled to.
How to find out the cadastral value
To obtain information about the price of property, you can contact the cadastral chamber of your city and apply for a certificate of the cadastral value of the property. Be sure to take your passport with you. The certificate will be ready within five working days, and it is free. If you do not need the original document confirming the cost of the apartment, then you can check it without leaving your home - on the Rosreestr website. In the “electronic services” section, go to the “reference information on real estate” tab or find your house on the public cadastral map by coordinates and address.
How to find out inventory value
An inventory assessment is usually requested when they want to buy or sell an apartment, or when they participate in the processes of privatization, inheritance or exchange. This amount is calculated by specialists at the Bureau of Technical Inventory. They determine the replacement cost - the price of the building at the moment, as if it were built just now, taking into account the costs of commissioning. The greatest importance for calculating the inventory value of real estate will be: the area of housing, the type of foundation, the number of load-bearing walls, windows, doors, as well as elevators and floors in the house. In addition, they take into account the prices of equipment and materials, wages of workers, warehouse and transportation costs and the maintenance of utility networks. The percentage of wear and tear and changes in the cost of materials and services are subtracted from the replacement cost.
How to determine tax deduction
When paying tax at cadastral value, a tax deduction is provided for owners. It is important that you can use this benefit only for one piece of real estate from different categories (house, room, apartment, etc.). Therefore, if you own two or more apartments (houses), make calculations for each property to determine which one is more profitable to receive a deduction for. If you don’t choose on your own and not notify the tax service, then the specialists themselves will determine for which apartment to provide the maximum benefit, and this will not always be a calculation in your favor.
Some owners are exempt from taxes by law. The full list of benefits can be found on the website of the Federal Tax Service, which provides background information on benefits and rates for property taxes. They should not be paid by Heroes of the USSR, pensioners, disabled people of groups I and II, spouses of civil servants, soldiers and officers who died at work, military families who have lost their breadwinner. Only one property from each category of real estate is also exempt from paying tax, if you have several of them. This measure was taken to ensure that solvent owners do not pursue profits by transferring apartments, for example, to their elderly parents.
How to choose a rate Our country uses a three-level property tax rate. For residential buildings, parking spaces, garages, unfinished buildings and outbuildings, it is equal to 0.1% - this is the first level. For buildings that do not belong to these categories and are defined as “other,” the rate is 0.5%, and for expensive real estate, which the cadastral service has valued at over 300 million rubles, the rate is 2%. By the way, the rate varies at the discretion of municipalities; it can be reduced or increased to 0.3% if we are talking about the first level of real estate.
How to calculate tax Ivan Tatarinov, commercial director of the development company Glincom:
— The tax formula is determined as the product of the cadastral value of the property, reduced by the tax deduction, and the interest rate, which depends on the type of property. If we are talking about apartments, then it varies from 0.1% to 0.3%, if the apartment is more expensive than 300 million rubles, then the rate is 2%. The reducing factor is no longer applied; it was introduced only during the transition period.
If you are not satisfied with the cadastral value, going to court is quite justified. This type of real estate assessment is carried out on a mass scale and does not take into account many of the nuances and characteristics of individual objects. Therefore, if the owner has reason to believe that the cadastral value of his property has been inflated, he can go to court. If we talk about the objects of the Glincom company (retail, office, apartment complexes in Moscow), we went to court three times with a demand to reduce their cadastral value and in all cases we managed to achieve a reduction of more than 25%.
If major repairs have been carried out at the entrance of the house, this most likely will not affect the cost. I'll try to explain. The tax increases only due to the revision of the cadastral value, which in Moscow occurs every two years. At the same time, the city determines it on a mass basis, using general data about the building in which the apartment is located (type of building, materials from which the walls are made, number of floors, location). Accordingly, individual parameters of apartments are not taken into account. However, the assessment also uses information about ongoing transactions. And if we assume that the renovation contributed to an increase in the cost of apartments upon sale, then this data can be used in the assessment. But this is extremely unlikely.
