What is personal property tax and what to pay for it
If you have real estate, you are obliged by the Tax Code of the Russian Federation, Article 400, to annually transfer some money to the state - for what gave you the right to own property. The following objects of the Tax Code of the Russian Federation are subject to tax Article 401:
- houses, including residential buildings located on plots for vegetable gardening, horticulture and personal farming;
- apartments, rooms;
- garages, parking spaces;
- unified real estate complexes;
- unfinished construction projects;
- other buildings, structures, structures, premises.
EPP has been paid: what next?
So, you have set aside a certain amount of EPP. And then you receive a tax notice. What to do next?
And then you need to compare how much money you have already paid and how much taxes the tax authorities have charged you. If what you paid covers the charges, you don't need to do anything. When the payment deadline arrives, the tax office will write off the required amount automatically. She must inform you of the relevant decision within 5 days.
If there is not enough money in your piggy bank, you need to either add the difference to the ETP account, or pay it according to the details of a specific tax.
IMPORTANT! ETP funds are counted not only towards paying taxes for the past year, but also towards arrears and penalties on them, as well as towards payment of interest for deferment or installment payments, if you have them. In this case, the offset is carried out sequentially, starting with a smaller amount. First of all, the arrears are repaid, then penalties and interest, and only lastly the taxes themselves.
How is personal property tax calculated?
If you don’t want to deal with the nuances, there is a calculator on the Federal Tax Service website. With its help you can quickly calculate the tax amount. This information will be useful to you if you are creating a budget for the year or just want to know in advance how much you will have to pay. In general, the tax office calculates everything itself and then simply informs you how much you owe.
The tax is calculated taking into account several criteria.
The tax base
This is the cadastral value of the property. It is determined by specialists authorized by the state using a special methodology. Unlike the inventory value, at which property taxes were previously calculated, the cadastral value takes into account not only the cost of housing, but also important characteristics such as transport accessibility and infrastructure.
You can find out the cadastral value online on the Rosreestr website.
To do this, you need to know the cadastral number or address. The cadastral number is indicated in the certificate of ownership if you purchased the property before July 15, 2021, or in an extract from the Unified State Register of Real Estate, which you should keep after registering the transfer of ownership in Rosreestr.
You can also view the cadastral number and cadastral value in your personal account on the tax website.
There is one more important point. The Tax Code implies a series of tax deductions that can seriously reduce the tax base. It is proposed to deduct either square meters from the area of the property - they will not be taxed, or a specific amount from the cadastral value. This:
- 10 meters for a room or part of an apartment;
- 20 meters for an apartment or part of a house;
- 50 meters for the entire house;
- 1 million, if we are talking about a single real estate complex that contains at least one residential building.
Let's say you are the owner of an apartment with an area of 60 square meters with a cadastral value of 3 million rubles. With a tax deduction of 20 meters, you will have to pay tax only for the remaining 40 meters, that is, the tax base will be 2 million rubles, not 3.
If the owner has many children, the tax base is further reduced. For each child, the cost of five square meters of a room or apartment and seven square meters of a residential building or part thereof is deducted from the tax base.
Tax rate
The Tax Code provides for the base rates of the Tax Code of the Russian Federation Article 406:
- 0.1% for houses, including unfinished ones, apartments, rooms, single real estate complexes, if at least one object in them is intended for housing.
- 2% for property whose cadastral value exceeds 300 thousand rubles, as well as if it is on a special list of real estate approved by local authorities. Usually there are various retail and office buildings there.
- 0.5% for other real estate.
The final rates are set by local authorities. They can reduce the base numbers to zero or increase them, but not more than three times. They are also allowed to introduce differentiated rates depending on the cadastral value, type of property and its location.
Therefore, for example, in Moscow, Moscow City Law No. 51 dated November 19, 2014, apartments, rooms in a house with a cadastral value of up to 10 million are taxed at 0.1%, from 10 to 20 million - 0.15%, from 20 to 50 million - 0.2%, from 50 to 300 million - 0.3%. For garages and parking spaces, the tax will be 0.1%, and unfinished construction will be at a rate of 0.3%.
You can find out the rates for your locality on the Federal Tax Service website.
Ownership share
Let's say you own an apartment equally with your spouse. Or ⅔ of your parent’s apartment is registered to you. In this case, it is for half or ⅔ that you must pay tax. Therefore, you need to calculate this part of the product of the tax base and the tax rate.
Taxable period
By default, tax is calculated annually. But if you bought or, conversely, sold property, you will only have to pay for the months that you owned it. A simple formula works here:
Tax = Cadastral value × Tax rate / 12 × Number of months you owned the property.
Refund of single tax payment
You can return:
- The entire amount of EPP paid. This can be done at any time. The EPP is a voluntary matter. Therefore, if you paid for it and then changed your mind, no one has the right to withhold your funds. But keep in mind that the payment is only refunded in full. It is impossible to return part of the EPP, but leave part to pay taxes.
- The balance of the payment that remains after the EPP is offset against the payment of taxes - after the expiration of the payment period.
To return a single tax payment, you need to submit a tax application using the form from the Federal Tax Service order dated December 14, 2018 No. ММВ-7-8/ [email protected] You can download the form and sample of filling out the application for free by clicking on the picture below:
The refund period is 1 month from the date of application. If the Federal Tax Service does not meet this time frame, it will owe you interest for each day of delay at the refinancing rate of the Central Bank of the Russian Federation.
If for some reason you cannot pay your taxes on time, then you have the right to request a deferment or installment plan for the payment of personal taxes. Find out how to do this correctly in ConsultantPlus. If you do not have access to the K+ system, get a trial online access for free.
When and how to pay property tax for individuals
You need to transfer money to the tax office before December 1st. By November 1, the Federal Tax Service must send a general notification for land, transport taxes and property taxes. The document arrives by regular mail or electronically to your personal account on the tax website, if you have one.
You can pay money in several ways.
Through your personal account on the Federal Tax Service website
Select the "Taxes" tab, open the notification, go to the "Pay" option.
Via the Federal Tax Service website
You can pay through this service without registration. Select the option “Individuals”, then “Payment of taxes, insurance premiums”.
Through a bank or Russian Post
Please notify an employee of the institution.
Via an ATM or payment terminal
Select the desired service, enter the amount and details.
Single tax payment - we pay taxes in a new way
The single tax payment of an individual from 2021 is a new, alternative to the traditional way of paying personal taxes for individuals: transport, property, land, and from 2021, personal income tax.
Previously (this method is still valid today, and you can continue to use it) it was possible to transfer property taxes only on the basis of a tax notice and only after receiving it from the tax authorities. Moreover, each tax was required to be paid in a separate amount to your BCC. And the money had to be sent to the budget before the expiration of the payment deadline common to all three taxes (according to the Tax Code of the Russian Federation this is December 1). Payments in advance were not allowed. Such a one-time payment at the end of the year could not be very convenient for taxpayers, especially if the amount turned out to be significant.
But from 2021, that is, starting with taxes for 2021, you can also pay property taxes using a single tax payment (UTP). Let's see what it is and how this payment works.
Are there any benefits for personal property tax?
Some categories of citizens receive a 100% benefit, that is, they do not have to pay tax at all. Their list is quite long; it can be read in its entirety in the Tax Code of the Tax Code of the Russian Federation, Article 407. In particular, it contains:
- Heroes of the Soviet Union and Heroes of the Russian Federation, as well as persons awarded the Order of Glory of three degrees;
- disabled people of the first and second groups, as well as disabled people from childhood and disabled children;
- participants and veterans of various military operations, starting with the Civil War;
- pre-retirees and retirees.
If a citizen owns several real estate properties, the benefit applies to only one of them - at the taxpayer’s choice. It is important that this property is not used in business activities.
There are also local benefits. They can be found in the same tax service where you checked tax rates. They can also reach 100% or make up some part of the tax.
