Property tax is calculated taking into account the cadastral value of real estate. Depending on the type of real estate (land, private house, apartment, garage, etc.), there are rules for calculating tax based on the cadastral value.
In this article we will briefly and step-by-step analyze examples of calculating tax based on cadastral value in 2021. To do this, we will consider all the components of the tax calculation formula taking into account the types of real estate.
Types of real estate for paying tax at cadastral value
Taxes are imposed only on those properties that are registered in the cadastral register. Registered real estate is assessed by the state and each property has its own cadastral value.
Taxes are paid based on the cadastral value and taking into account tax rates and benefits. Let's look at how taxes are paid based on the cadastral value of the following types of real estate:
- land plot
- residential (private) house
- garden house
- apartment (room)
- other real estate objects
Let us briefly consider the procedure for paying tax at cadastral value in 2021 for each type of real estate separately.
How to find out the cadastral price
You can obtain information about the cadastral value of a specific apartment or other property in different ways:
- with the help of the Federal Tax Service, and information is available on the website of this institution, and you can also visit the organization in person;
- on the official resource or in the Rosreestr branch.
The most important thing for this is to obtain an extract from the Unified State Register of Real Estate, which can be ordered directly on the Rosreestr website.
If it is provided electronically, its cost will be only 300 rubles.
If you have information about the cadastral price of the property, then there will be no difficulties in determining the amount of tax.
Are pensioners exempt from paying property taxes? Watch the video:
Can the indicator change?
Often, apartment owners are sure that the established cadastral value is too high. In such a situation, they can challenge this indicator, so to do this they will have to go to court.
It is possible to resolve the issue in a pre-trial manner, for which you need to contact a special commission formed on the basis of the law on valuation activities. She will examine the existing property, after which a decision will be made regarding the advisability of reducing the cadastral price.
If the result of the assessment is unsuitable for a citizen, then he can go to court to protect his interests.
According to the court, you will have to turn to independent appraisers. If it is indeed established that the cadastral price is inflated, then the court will make the necessary changes to the Unified State Register of Real Estate, and a recalculation will also be made.
Land plot - how to calculate tax in 2021
Land tax is a local tax and is calculated based on the tax rates set by the local municipality. To pay land tax, the following information is required:
- cadastral value of the land plot;
- land area;
- tax rate for a specific land plot adopted by the municipality in 2021;
- availability of benefits for the owner.
When we know all this data, then we can easily calculate the tax on your land plot:
For clarity, here is an example :
| We calculate land tax | Definition, basis, magnitude |
| Taxpayer | Individual – pensioner |
| Land plot | 13 acres |
| Cadastral value | 5 million rub. |
| Tax rate | 0,3 % |
| Federal benefit under Art. 391 item 5 | Reduction of the tax base by 600 sq.m. |
According to the example given in the table, the formula for calculating land tax based on cadastral value is as follows:
(5,000,000 – 2,307,692)*0.3% = 8,077 rub . – the amount to be paid in our case.
(Explanation: if the cadastral value for 13 acres of land = 5 million rubles, then the cadastral value of one hundred square meters = 384,615 rubles, the cadastral value of 6 acres = 2,307,692 rubles - this amount is not taxed; accordingly, only 7 acres are taxed land).
Each specific case will have its own calculation, taking into account the cadastral value, area, rate and benefits. You can read more about the features of calculating land tax here.
Income tax deduction
Every resident of the Russian Federation has the right to a property tax deduction once in his life when purchasing real estate.
Property tax deduction is calculated from the amount spent on the construction or purchase of an apartment (house). If housing was purchased using a targeted loan, then the tax deduction includes the amount of interest on this loan. It is important that the loan is specifically targeted, that is, the loan agreement must indicate that the loan was issued “for the purchase of an apartment (house).” If a loan was used without specifying a purpose, then the interest on such a loan cannot be included in the tax deduction amount.
When purchasing an apartment without finishing or when building a house, the tax deduction can additionally include the costs of developing design estimates, purchasing construction and finishing materials, paying for construction and finishing work, costs of connecting to networks or creating autonomous sources of electricity, water and gas supply. Acceptance for deduction of expenses for the completion and finishing of purchased housing is possible if the purchase and sale agreement specifies the acquisition of an unfinished house or apartment without finishing.
From January 1, 2008, as a property tax deduction, you can present the amount of expenses for the purchase (construction, finishing) of housing up to 2,000,000 rubles (previously this amount was 1,000,000 rubles). The amount of interest on a mortgage loan that can be claimed as a tax deduction is not limited by law.
Expenses included in the tax deduction must be made from your own funds or from a loan. Expenses made from government subsidies, maternity capital, and other social payments cannot be included in the tax deduction.
How to calculate residential house tax in 2021
In the same way as the land tax (example above), we can figure out how to pay the tax on a residential building. This is also a local tax, the so-called property tax. Payment of tax on a residential building is regulated by Chapter 32 of the Tax Code.
At the moment, the tax on a residential building is determined based on the cadastral value of the residential building. At the same time, tax payers are exempt from paying for 50 square meters of the total area of this residential building. (Clause 5 of Article 403 of the Tax Code).
For more details on how the tax is calculated based on the cadastral value of a residential private house, read a separate article: “Calculation and determination of the tax on a private residential building based on the cadastral value”
Legislative regulation
Since 2021, significant changes have been introduced to the rules for calculating this tax, since now the cadastral value is used for this in almost all cities, but previously it was the inventory price that was used. This resulted in the fee being increased.
Important! Information about the cadastral indicator of each object can be obtained from Rosreestr or the Federal Tax Service.
Tax calculations are carried out by employees of the Federal Tax Service, so owners of apartments or houses may not carry out this process themselves, but they can do the calculations to check the correctness of the values sent by the tax office.
What are the differences between cadastral and market valuation of an apartment? Read the link.
Due to the fact that the cadastral price is now applied, which is close to the market value, many owners of apartments and houses are faced with the fact that the amount of such a tax is really significant.
At the same time, representatives of the Federal Tax Service notify taxpayers about some other important nuances:
- These innovations will be fully effective only from 2020;
- additional deductions are also being introduced that can be used by certain categories of the population, which will significantly reduce the amount of tax paid;
- In addition, there will be beneficiaries who are completely exempt from the need to transfer this type of fee.
Therefore, every person should thoroughly study the main points of legislation in order to understand the rules for paying taxes.
How, according to the law, is tax paid on two apartments owned by one citizen? Watch in this video:
Calculating tax on a garden house
There is an opinion that registering your dacha house as a non-residential building is more profitable for paying taxes. But this opinion is wrong. For tax purposes in 2021, a residential building is a house and residential building located on plots for private household plots, individual housing construction, gardening and vegetable gardening.
Therefore, a garden house is also subject to tax, like a residential building, if information about it is included in the Unified State Register of Real Estate. In order to calculate the tax on a garden house, you should also know the components for paying the tax: cadastral value, area, tax rate, availability of tax benefits.
It should be remembered that if your property has several houses - for example, two or three, then tax exemption for 50 sq.m. only applies to one of them.
How to pay taxes for an apartment and room in 2021
Owners of small-sized apartments will receive good news - apartment living space up to 20 square meters is not subject to tax. m., or rooms - up to 10 sq.m. This benefit is established at the federal level and enshrined in Art. 403 of the Tax Code.
That is, if your apartment is 25 square meters, then in fact only 5 square meters are taxed. There are also additional benefits for paying apartment taxes. These benefits are established at both the federal and local levels. Read our article: “Apartment tax based on cadastral value.”
Who is entitled to a property tax deduction?
Citizens who have income taxed at a rate of 13% can receive a property tax deduction. First of all, these are those who are employed and have a “white” salary. If the salary is “gray”, then you can count on a deduction only from the official amount of income. If a citizen works simultaneously in several jobs, then you can get a deduction from the income from all jobs. In addition to salary, there may be other income taxed at a rate of 13%. For example, income from leasing property, from the sale of securities or other property, etc. You can receive a property tax deduction for such income.
If a citizen is an entrepreneur and uses a special tax regime (“simplified”, “imputed”, etc.), then he does not have the right to a property tax deduction on income received as a result of entrepreneurship.
Non-working pensioners are also not entitled to the deduction.
Women on maternity leave can apply for a tax deduction after returning to work. If housing was purchased before maternity leave, then you can apply for a tax deduction on income received during the period between the purchase of housing and maternity leave. And if these incomes are not enough to receive the entire deduction, then the remaining portion can be received after returning to work.
People who are not citizens of the Russian Federation, but officially live and work in the Russian Federation for more than 183 days a year (are residents), have the right to a property tax deduction.
Tax on other types of real estate at cadastral value
In addition to individuals, legal entities can also be owners of real estate. They are required to pay taxes in advance payments quarterly, and at the end of the tax period submit a tax return. Unlike individuals, organizations are required to independently calculate taxes in accordance with current legislation.
The property tax of organizations is a regional tax and is regulated by Chapter 30 of the Tax Code.
Regarding taxes on personal property. persons, such as outbuildings, garages and unfinished objects - they are also taxed if taken into account by the state.
Home taxation
The existing procedure obliges the owner of capital buildings to pay real estate tax. For a country house, a fee is charged at the residential premises tariff.
Pensioners and owners of holiday homes receive a tax notice if they are not included in preferential categories. In some areas, taxation standards for pensioners are introduced by local governments. Preferential categories are formed depending on the period of ownership of the plot or building. This is a decisive factor when providing financial relief.
In the legislation of 2021, there were changes regarding the dacha amnesty. The simplified procedure for free registration of property and its incorrect inclusion in the cadastre ceased to operate ahead of schedule. New rules have been established; now the tax on buildings on a summer cottage is calculated according to the usual scheme. The changes affected beneficiaries, the period of ownership of the dacha, and rates.
There have been reports that the government is coordinating with the Duma the possibility of returning to the original version, extending the amnesty until March 1, 2020.
When selling a dacha, a citizen of the Russian Federation is obliged to pay 13% of the cost to the budget. The period of ownership of a residential building, after which no tax is charged, is 5 years. In some cases, the seller of a dacha has the right to receive a deduction.
There is no need to pay tax if you have been the owner of the dacha for more than 5 years
Categories of persons exempt from paying personal income tax when selling a dacha:
- Citizens who received a dacha property as a gift from a spouse or relative.
- Persons who became the owner of the building as a result of privatization.
- A person using a dacha under a lifelong maintenance agreement.
The tax amnesty has not ceased for owners of land plots and houses. Debts incurred before the beginning of 2015 are forgiven automatically. Since the Federal Tax Service hopes to collect arrears, the issue of write-off is difficult to resolve.
