Retirees do not pay taxes for a plot of 6 acres, but if it is more, they will have to pay. Photo: RIA Novosti
property tax
This is not a federal tax, but a local one. It is established by the regions (in cities of federal importance, such as Moscow, St. Petersburg and Sevastopol – by the laws of these subjects).
Who has to pay taxes?
Property taxpayers are individuals who own real estate. We are talking about such a property as a residential building, apartment, room, garage, parking space, ongoing construction, other buildings and premises. Residential houses and buildings on land for personal subsidiary agriculture, gardening, landscaping, individual home construction are residential buildings. Taxes are not levied on the common property of multi-apartment residential buildings.
How is the tax calculated?
It depends on the cadastral value of the property. According to the Federal Tax Service (FTS), for the tax period of 2023, the tax base in relation to a tax object is determined as its cadastral value registered in the Unified State Registry of Real Estate (EGRN) and subject to the application of January 1, 2022.
On average, the property tax is 0.1% of the cadastral value. But regions can set their own tax rates. In Moscow, for example, the rate is further differentiated depending on the cadastral value of the home, from 0.1% to 0.3%. Naturally, the more expensive the home, the higher the tax.
In 2023, Russia will carry out a state cadastral valuation of structures, ongoing construction, buildings and premises. From now on, the revaluation will be carried out in all regions once every four years, and in cities of federal significance once every two years.
Who is exempt from property tax?
First of all, these are pensioners. As well as a large number of other people, including the Heroes of the Soviet Union and the Russian Federation, as well as people awarded the Order of Glory of three degrees; disabled of groups I and II, disabled since childhood, disabled children; participants of the Great Patriotic War and other combat operations from among the servicemen who served, as well as partisans; liquidators of the accident at the Chernobyl nuclear power plant; military or ex-military personnel with a total length of service of 20 years or more; military relatives who have lost breadwinners; parents and spouses of military and officials killed in the line of duty, and other categories.
Tax relief is granted subject to the following conditions: the property is not used in business activities; the cadastral value of the property does not exceed 300 million rubles; benefits are granted with respect to a tax object of each type at the taxpayer’s choice.
If, for example, a retiree owns three apartments, then property tax will not be charged on one apartment, and the other two will have to be paid. The pensioner himself chooses an apartment that is included in the benefit.
What other advantages are there?
For real estate, a tax deduction applies. In a residential building, it is provided for 50 square meters. m, in the apartment – for 20 square meters. m, in the room – for 10 square meters. m. In other words, this footage is not taken into account when calculating the annual property tax. For each property – a tax deduction.
On average, the real estate tax is 0.1% of its cadastral value
Large families with minor children may qualify for property tax benefits. For them, the taxable area is reduced by 7 square meters. m at home or 5 square meters. m of apartment per child.
How to get benefits?
Tax notices are generated in the personal account of the taxpayer on the website of the Federal Tax Service. They can be tracked through public services. Today, the Federal Tax Service itself checks whether a particular citizen is entitled to a benefit.
There are several ways to request a tax benefit: through the taxpayer’s personal account; by mail to the tax office; in person at the tax office; through the MFC.
land tax
Federal legislation does not provide for exemption from land tax. But starting from the 2017 tax period, when calculating the land tax, the tax base is reduced by the amount of the cadastral value of 600 m2. m of land area (tax deduction) owned, permanent (unlimited) use or inheritable possession for life of pensioners receiving assigned pensions in the manner prescribed by law.
Simply put, retirees don’t pay taxes on 6 acres. If the parcel is larger, you will have to pay for the remaining acreage. Exempt from paying the tax for 6 hectares and large families.
transport tax
At the federal level, pensioners are not exempt from transportation tax. Only if it is canceled by the regional authorities. So, in Moscow, one of the parents of a large family is exempt from paying taxes on a car. And in the Moscow Region, families with many children are exempted from paying the transport tax if the transport capacity does not exceed 250 horsepower.
By the way
What will change in property taxes this year?
In the fall, the Federal Revenue Service will, as usual, begin mailing property tax notices to individuals; up to and including December 1, taxes will have to be paid for an apartment, houses, cars, land and other property by 2022. Every year some details of taxation change. The Federal Tax Service has already announced what will change for taxpayers in 2023.
So, there is a major change regarding the so-called “luxury tax” on cars. In 2023 tax receipts for 2022, the transport tax rate will be higher than the standard only for cars over 10 million rubles. Prior to this, last fall, when paying taxes for 2021, cars more expensive than 3 million rubles fell under increased transport tax coefficients. The list of such machines is maintained by the Ministry of Industry and Commerce.
Also, many taxpayers, having received notices last fall, may have noticed that the amount of land tax and property tax has increased. There could be several reasons for this. For example, they could change tariffs or cancel benefits, the values of which are determined by municipalities (these are urban districts, municipal districts, urban, rural settlements). There could be a recalculation of the tax or a clarification of the benefits claimed by the payer.
In addition, the cadastral value of a piece of land could also change, for example, in connection with the entry into force of new results of a cadastral appraisal or the transfer of a piece of land from one category of land to another, a change in the type of use allowed, or clarification of the area.
In the same year, for the calculation of the 2022 tax, the exceptions to the rule on the inadmissibility of tax increases of more than 10% with respect to the previous tax period will be applied. “Now, this restriction does not apply to land whose cadastral value has changed during the tax period due to changes in its area, land category, permitted use. It also does not apply to land for which information on violations in use is submitted to the tax authorities Rosselkhoznadzor and Rosreestr,” the FTS said.
Prepared by Roman Markelov
