The tax payable = tax calculation basis × tax rate, which is calculated based on the transaction price. The transaction price is finalized by both parties and a contract is formed. The tax authorities use this as a basis to directly calculate taxes. This pricing method is mainly applicable to the transfer of state-owned land use rights, the sale of land use rights, and the sale of houses.

Effective from February 22, 2016, for individuals who purchase the only home for their family (family members include the home buyer, spouse and minor children, the same below) with an area of ??90 square meters or less, the purchase price will be reduced. The deed tax is levied at a rate of 1%; if the area is more than 90 square meters, the deed tax is levied at a reduced rate of 1.5%.

If an individual purchases a second improved house for a family with an area of ??90 square meters or less, the deed tax will be levied at a reduced rate of 1%; if the area is more than 90 square meters, the deed tax will be levied at a reduced rate of 2% levy deed tax.

Extended information:

Historical evolution:

China's deed tax originated from the "tax assessment" in the Eastern Jin Dynasty and has a history of more than 1,600 years. At that time, it was stipulated that if there was a deed for the sale of land, houses, slaves, cattle and horses, the government would levy 400 yen for every 10,000 yen transaction amount, which is a tax rate of 4%, of which the seller paid 3% and the buyer paid 1%.

In the second year of Kaibao in the Northern Song Dynasty (969 AD), deed money (which is a tax in nature, but named money) began to be collected. This is no longer shared between the buyer and seller, but paid by the buyer. The payment deadline is two months. From then on, deed taxes began to be levied on the grounds of protecting property rights.

After that, successive feudal dynasties levied deed taxes on property rights changes such as the sale and purchase of land and houses, pawning, etc., but the tax rates and collection scope were not exactly the same. For example, in the fourth year of Shunzhi (1648 AD) in the early Qing Dynasty, it was stipulated that when private sales, mortgaged land and houses were registered with the government, the buyer would pay three cents (i.e. 3%) for every tael of silver based on the purchase price.

By the end of the Qing Dynasty, the deed tax rate for the sale of land and houses was increased to 9%, and the pawn deed tax rate was increased to 6%.

Baidu Encyclopedia-Real Estate Deed Tax