Which Taxes Does Buying a Home Trigger?
The buyer mainly faces three taxes plus one fund:
- Deed tax: paid once at purchase
- Stamp duty: exempt for homes
- Maintenance fund: deposited once at purchase
- Title registration: CNY 80 per home
2026 Deed Tax Rules
| Type | ≤ 140 sqm | > 140 sqm |
|---|---|---|
| Family's only home (first) | 1% | 1.5% |
| Second (upgrade) home | 1% | 2% |
| Third home and above | 3% | 3% |
Example: CNY 1M first home ≤ 140sqm → deed tax CNY 10,000.
Seller's Taxes (They Decide Your Real Cost)
The buyer usually ends up bearing the seller's taxes too, so they matter equally:
- VAT: exempt after 2 years of ownership; within 2 years, 5% on the full price
- Individual income tax: exempt if "5 years & only home"; otherwise 1% of price or 20% of the gain
A Real Ledger: CNY 1M Second-Hand Home
A CNY 1M home held 2–5 years by the seller; the buyer's family first home:
- Deed tax: 1M × 1% = CNY 10K (first home, ≤140sqm)
- Maintenance fund: 1M × 2% = CNY 20K
- Seller's VAT: 0 (past 2 years)
- Seller's income tax: 1M × 1% = CNY 10K (usually passed to the buyer)
True total ≈ CNY 40K — 4% of the price.
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