If the transaction price of real estate is low, the local tax authorities will evaluate the taxpayer according to the location, geographical location, construction time, housing type, average house price level and other factors, and then take the evaluated price as the tax basis. If the price is reasonable, the transaction price of the house is the tax basis.

The deed tax rate is determined according to the provisions of the document Caishui [20 10]94. If an individual purchases an ordinary house, and the house belongs to the only house in the family (members include the purchaser, spouse and minor children, the same below), the deed tax will be levied by half at the tax rate of 1.5%. If an individual purchases an ordinary house of 90 square meters or less, and the house belongs to the only family house, the deed tax shall be levied at the reduced rate of 1%. Ordinary houses purchased by individuals who do not meet the above conditions do not enjoy the above preferential policies, and the tax rate of 3% applies.