How to calculate property tax for individuals

What determines the amount of property tax for individuals?

This type of payment is a direct tax on property located on the territory of the Russian Federation, levied on the owner (in this case, an individual).

According to the Tax Code of the Russian Federation (Article 401), the taxable base can be:

• residential premises (houses, apartments, rooms);
• garage buildings (parking spaces);
• unified real estate complexes (a set of buildings, structures, power lines, pipelines, etc.);
• unfinished objects;
• other premises owned by individuals.

The amount of payment depends on various factors, determined individually in each specific case:

1. Rates and benefits that are established independently in each territory, since this payment relates to local taxes.
2. The size of the tax base.
3. Time of ownership of the property.
4. It depends on what calculation methodology is used in the region (taking into account all the necessary indicators, coefficients, etc.).

Separately, we should consider ways to determine the value of taxable objects. In accordance with the law, since 2015 the mandatory payment is calculated according to the cadastral value (CV). Before this period, inventory value (IC) was used in the calculation. The difference is that the KS corresponds to market prices for property. Therefore, the more expensive it is, the greater the payment amount.

Due to the fact that the tax system is significantly higher than the IP, and the tax burden of citizens has increased significantly, the state provides for a gradual transition from one method of calculation to another. To date, some territories have already switched to the new method of calculation, and some are still in the process. But as a result, in accordance with No. 284-FZ dated 10/04/2014, from 01/01/2020, property tax for individuals will be calculated only on the basis of the cadastral valuation of the property.

How does the reduction factor work?

Today, tax taking into account the cadastral value of real estate is calculated in 49 regions of Russia. Other entities still use the old calculation rules that take into account inventory value. The new taxation system was implemented in stages: since 2015, it began to be experimentally applied in 28 regions (including Moscow and the Moscow region), that is, for the first time citizens paid tax according to the new rules in 2015. In these regions, the increasing coefficient managed to rise to 0.6. Another 21 subjects began to use the new system in 2021, here the increasing coefficient today is 0.4. In 2017, the new taxation procedure began to be applied in 15 more regions.

The new rules stop the effect of coefficients in regions that have reached the fourth tax period (coefficient 0.8). Once the coefficient reaches 0.6, its growth will not exceed 10% per year. That is, starting this year, not all Russians, but only residents of 28 experimental subjects, will be the first to feel a pause in the growth of the tax burden. In other regions, the tax amount will increase annually by 20% until the coefficient reaches 0.6.

You can independently calculate the amount of property tax using a calculator.

Indicators used in the calculation

Based on the above factors influencing the amount of payment, it should be noted the indicators used in the formulas (clause 8 of Article 408 of the Tax Code of the Russian Federation):

• KS (cadastral value) - the value of a property determined by the state - the cadastral chamber. Recorded in Rosreestr documents;
• IP (inventory value) is an expert assessment of real estate by BTI authorities, based on square meters of housing and used building materials. This is a kind of subjective assessment, significantly lower than market value;
• tax rates from the CC and IP, determined for each individual territory in accordance with the Tax Code of the Russian Federation, Article 406.

When calculating tax according to the tax system, the following indicator values ​​are used:

• deflator coefficient (CD) is used when calculating the mandatory payment for inventory value. In accordance with the order of the Ministry of Economic Development No. 595 dated October 30, 2018, CD = 1.518 in 2021;
• tax-free area provided for different types of residential premises, in accordance with Art. 403 of the Tax Code of the Russian Federation: apartment – ​​20 m², room – 10 m², house – 50 m². Local authorities have the right to adjust these indicators at their discretion;
• benefits provided by law, Art. 407 of the Tax Code of the Russian Federation. For some categories of citizens, regional authorities provide preferences. But, in any case, a tax benefit can be applied only to one taxable object of each type, in accordance with the choice of the owner who has the advantage;
• the reduction factor will no longer be used in 2021; it was used in the calculations for 2015-2017. (in the first year of transition it was 0.2; the second – 0.4; the third – 0.6);
• property ownership period coefficient, used if ownership arose or ceased within a year (number of months/12);
• When determining the amount of payment, the number of owners is taken into account.

Starting from 2021, not all given values ​​are used in the calculations.

Formula for calculating property tax for individuals

In connection with the transition from one tax base calculation system to another, the appropriate formulas will be applied to calculate the amount of the gratuitous payment (clause 8 of Article 408 of the Tax Code of the Russian Federation).

Formula for regions where less than 3 years have passed since the transition to the cadastral valuation method

To calculate for the period 2015-2019, the formula is used:

H = (H1 – H2) × K + H2

• H – amount of gratuitous payment (tax);
• H1 – the amount of the mandatory payment, taking into account the KS of the property;
• H2 – the amount of tax calculated based on the inventory value of the property and the deflator coefficient determined by law in each year of transition to the new calculation system;
• K – reduction factor, which is used for calculation with an increase in value each subsequent year: 0.2; 0.4; 0.6. Starting from the 4th year, this indicator does not apply.

Calculation formula with cadastral value

Starting from the fourth year, when IP is not taken into account, the formula applies:

H1 = KS × % rate

• H1 – amount of gratuitous payment;
• KS – cadastral value of the property;
• % rate - a rate determined depending on the type of property and cost.

Calculation formula with inventory value

This form of calculation is required to calculate payments to the budget during the transition period:

H2 = IS × %rate × Kd

• H2 – tax amount;
• IS – inventory value;
• % rate – a rate determined depending on the type of property and cost;
• Kd – deflator coefficient equal to 1.518 in 2021 and 1.481 in 2018.

Examples of calculations

When calculating the amount of the mandatory payment, it is necessary to take into account all the nuances provided for by the legislation of the Russian Federation.

Action of the reduction factor

As a result of the principle of the reduction coefficient, the tax burden for citizens increases every year by 20%, and ultimately at the end of the period it will be 100%.

How will the situation change if, for example, the transition began in the region in 2021:

In the fourth tax period, property owners will have to pay a contribution without taking into account Kd.

Calculation for a region where less than 3 years have passed since the transition to the cadastral valuation method

Initial data:

• living space - apartment with an area of ​​64 m²;
• KS – RUB 2,800,000;
• IS – 250,000 rubles;
• tax is calculated for 2021;
• calculation based on cadastral value - from 2021;
• tax benefits are not provided;
• Territory of residence - Orenburg.

In accordance with the decision of the City Council of Deputies, the tax rate is equal to 0.1%, in accordance with the Tax Code of the Russian Federation, for residential premises.

Since the value of the property is below 500 thousand rubles, a rate of 0.1% is used for IP, in accordance with the Tax Code of the Russian Federation. Art. 406.

For 2015, Kd = 1.147 (Reg. No. 685 of October 29, 2014) - in accordance with the law, the calculation applies the Kd of the last year of application of the IP. That is, when calculating property tax in 2021, the calculation of the inventory value for 2015 is used.

We consider the tax-free area for apartments to be 20 m², in accordance with the Tax Code of the Russian Federation, Art. 403, since regional authorities do not provide for another parameter.

The value of the reduction factor K = 0.6, since 2021 is the third reporting period.

We apply the formula: H = (H1 – H2) × K + H2

1. We find H1 (we calculate the taxable base taking into account the required deduction):

• we determine the cost of 1 m²: 2800000/64=43750 rubles;
• we find the price of 20 m², non-taxable: 43,750 × 20 = 875,000 rubles;
• we determine the tax base: 2800000 – 875000 = 1925000 rubles;
• We calculate H1, taking into account the interest rate:

1925000 × 0.1% = 1925 rub.

1. Find the value of H2 (H2 = IS × %rate × Kd):

250,000 × 0.1% × 1.147 = 286.75 rubles.

1. We calculate the amount of tax H (using the formula: H = (H1 – H2) × K + H2):

(1925 – 286.75) × 0.6 + 286.75 = 1269.70 rub.

Answer:

RUB 1,269.70 must be paid to the Federal Tax Service for an apartment with an area of ​​64 m² owned.

Deflator coefficients for 2021

(Order of the Ministry of Economic Development of the Russian Federation dated October 20, 2015 No. 772 “On the establishment of deflator coefficients for 2021”, registered with the Ministry of Justice of the Russian Federation on November 11, 2015 No. 39653)
Simplified taxation system
According to clause 2 of Art. 346.12 Tax Code of the Russian Federation

An organization
has the right to switch to the simplified tax system
if, based on the results of nine months of the year in which the organization submits a notice of transition to the simplified tax system,
income
determined in accordance with
Art.
248 of the Tax Code of the Russian Federation, did not exceed 45 million rubles. Specified value

the maximum amount of income of an organization, limiting the right of the organization to switch to the simplified tax system,
is subject to indexation no later than December 31
of the current year
by the deflator coefficient
established for the next calendar year.

The deflator coefficient required for the purpose of applying Chapter 26.2 of the Tax Code of the Russian Federation was established for 2015

at the rate of
1,147
.

To switch to the simplified tax system
from 2021,
income for the nine months of 2015 should not exceed
51,615 thousand rubles.
(RUB 45 million x 1.147).

According to paragraph 4 of Art. 346.13 Tax Code of the Russian Federation

if, based on the results of the reporting (tax) period, the taxpayer’s income, determined in accordance with
Art.
346.15 and
paragraphs.
1 and
3 paragraphs 1 art.
346.25 of the Tax Code of the Russian Federation , exceeded 60 million rubles, such a taxpayer is considered to
have lost the right to use the simplified tax system
from the beginning of the quarter in which the specified excess and (or) non-compliance with the specified requirements was allowed.

Specified size limit value

The taxpayer’s income, which limits the taxpayer’s right to use the simplified tax system,
is subject to indexation
in the manner prescribed by
clause 2 of Art.
346.12 Tax Code of the Russian Federation .

The deflator coefficient for the purpose of applying the simplified tax system is set for 2016

at the rate of
1,329
.

Consequently, for tax payers under the simplified tax system, the income limit is

for the tax (reporting) period
2016 .
should not exceed
79,740 thousand rubles.
(RUB 60 million x 1.329).

A single tax on imputed income

In accordance with Art.
346.29 of the Tax Code of the Russian Federation, the tax base
for calculating the amount of UTII is
the amount of imputed income
, calculated
as the product of the basic profitability
for a certain type of business activity, calculated for the tax period,
and the value of the physical indicator
characterizing this type of activity.

To calculate the amount of single tax depending on the type of business activity, physical indicators

, characterizing a certain type of business activity, and
basic profitability per month
.

Basic yield

adjusted (multiplied)
by coefficients K1 and K2
.

Art. 346.27 Tax Code of the Russian Federation

it has been established that
K1
is a deflator coefficient established for a calendar year,
calculated as the product of the coefficient applied in the previous period and the coefficient
taking into account changes in consumer prices for goods (work, services) in the Russian Federation
in the previous calendar year
, which is determined and subject to official publication in the manner established by the Government of the Russian Federation.

Deflator coefficient K1

, required for the purpose of applying Chapter 26.3 of the Tax Code of the Russian Federation,
for 2021
is set at
2.083
.

Let us recall that the deflator coefficients established for previous years and the deflator coefficient established

next year, taxpayers
should not multiply when calculating UTII
.

The Ministry of Economic Development of the Russian Federation, by order of November 18, 2015 No. 854, changed the deflator coefficient for 2021 for UTII and set it at 1.798 , the same as for 2015.

Patent tax system

Art. 346.43 Tax Code of the Russian Federation

It has been established that the laws of the constituent entities of the Russian Federation establish
the amount of annual income that an individual entrepreneur can potentially receive
by type of business activity in respect of which the PSN is applied.

However, the minimum size

The annual income potentially received by an individual entrepreneur cannot be less than 100 thousand rubles, and its
maximum amount
cannot exceed 1 million rubles, unless otherwise established by
clause 8 of Art.
346.43 Tax Code of the Russian Federation .

Specified minimum and maximum dimensions

The annual income potentially received by an individual entrepreneur
is subject to indexation by the deflator coefficient
established for the corresponding calendar year.

Deflator coefficient for 2021

, required for the purpose of applying Chapter 26.5 of the Tax Code of the Russian Federation, is set at
1,329
.

In this regard, for these types of business activities, constituent entities of the Russian Federation can increase the maximum amount of annual income potentially received by an individual entrepreneur, taking into account indexation by the deflator coefficient established for 2021

.

For example

, for business activities in the field of
leasing
(
renting
)
residential and non-residential premises
, dachas, land plots owned by an individual entrepreneur by right of ownership,
subjects of the Russian Federation can, for 2021, establish the amount of
annual income potentially received by an individual entrepreneur as
no more than 13,290,000 rubles
_

At the same time, as the Ministry of Finance of the Russian Federation explained in a letter dated January 13, 2015 No. 03-11-09/69405, if

The legislative act of a constituent entity of the Russian Federation establishes that
the amount of annual income potentially
received by an individual entrepreneur
in 2021 is applied taking into account the approved deflator coefficient
, then the tax authorities, when calculating tax, take into account the potential income taking into account indexation.

In case the law

Subject of the Russian Federation, the amount of annual income potentially received by an individual entrepreneur for these types of activities
was not increased by a deflator coefficient; tax authorities

do not have the right
the amount of potential income for the purpose of calculating the amount of tax under PSN .

Personal income tax

According to Art.
227.1 of the Tax Code of the Russian Federation, foreign citizens engaged in labor activities for hire from individuals, organizations and individual entrepreneurs on the basis of a patent
issued in accordance with Federal Law No. 115-FZ of July 25, 2002
“On the legal status of foreign citizens in the Russian Federation”
, calculate and pay tax on income received from such activities.

Tax payment is carried out in the form of fixed advance payments

.

Size

fixed advance payments
are subject to indexation by a deflator coefficient
established for the corresponding calendar year.

For 2021

the deflator coefficient required for the purpose of applying Chapter 23 of the Tax Code of the Russian Federation is set at
1,514
.

Property tax for individuals

According to Art. 404 of the Tax Code of the Russian Federation, tax base for property tax for individuals

is determined in relation to each taxable object as its inventory value, calculated
taking into account the deflator coefficient
a on the basis of the latest data on inventory value submitted in the prescribed manner to the tax authorities
before March 1, 2013
.

Deflator coefficient

, required for the purpose of applying Chapter 32 “Property Tax for Individuals” of the Tax Code of the Russian Federation, is set
for 2021
in the amount of
1.329
.

Trade fee

For 2021

the deflator coefficient required for the purpose of applying Chapter 33 “Trade Fee” of the Tax Code of the Russian Federation is set at
1,154
.

We would like to remind you that no trade tax has been introduced in the Sverdlovsk region.

.