Residential transaction taxes are taxes that are payable when buying and selling a home, and are calculated differently depending on factors such as region, type of home, time of purchase, and more. Here's how the residential transaction tax is calculated in general:
Deed Tax: Deed tax is calculated based on the size of the property and the closing**. Generally, the deed tax rate is 3%-5%, and the specific tax rate and calculation method vary from region to region.
Personal income tax: If the seller is an individual, personal income tax is payable. Personal income tax is calculated as 20% of the taxable income. The taxable income is the balance of the transaction price of the house minus taxes such as the seller's purchase**, business tax, urban construction tax, education surcharge, stamp duty and other taxes at the time of purchase.
Business tax: If the seller is a company or sole proprietorship, it is required to pay business tax. The sales tax is calculated as: the transaction price of the house is 56%。
Additional Tax: The additional tax is calculated based on the amount of business tax. The specific calculation method varies from region to region, and is generally calculated according to a certain percentage of the business tax amount.
Stamp Duty: Stamp duty is calculated based on the transaction of the house** and the contract amount. The rate of stamp duty is generally 005%, the specific tax rate and calculation method vary by region.
The above is the calculation method of residential transaction tax under normal circumstances, and the specific calculation method and tax rate vary depending on the region, type of house, time of purchase, and other factors. When buying a home, it is advisable to check with your local real estate agent or relevant authorities to find out what taxes are and how they are calculated.
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