Article 408 of the Tax Code of the Russian Federation: property tax for individuals, explanations and benefits, calculation rules and rates, formulas and examples

Property tax for an individual refers to payment for real estate in favor of the state. Subject to taxation:

housing in apartment buildings;
houses for individual residence;
garages;
unfinished construction projects;
other buildings and structures.

Payments go to the local government budget, and calculations are made taking into account the cadastral value of the property. The rate is determined on the basis of the laws of local authorities, the maximum amount is 2% (0.1% - for apartments, houses, rooms; 2% - for shopping and entertainment facilities and expensive real estate worth over 300.0 million rubles; 0. 5% – for all other objects).

New rules of calculation

The procedure for calculating tax payments is considered a mandatory element of taxation, which means it is recognized as established. The payer himself calculates the amount he must pay for a given period. But sometimes, as when calculating property tax, this is the responsibility of the fiscal authority. Clarification is given in the Tax Code of the Russian Federation under Article 408. Within 30 days, the inspectorate sends information to the taxpayer specifying the amount to be paid, property items, tax base and payment terms. The calculation is made for each type of real estate independently according to the percentage share in the tax base.

In 2022, the transition to calculating tax from the method of assessing property based on inventory results to cadastral assessment will be completed. In paragraph 8 of Art. 408 of the Tax Code of the Russian Federation, changes have been made to adjust the method of calculating payment in relation to the cadastral value:

canceled the coefficient of 0.8 used in the calculation formula;
amendments were made to clause 8.1 regarding the limitation of 10% on the amount of increase in tax payable for the period passed;
eliminated the possibility of settlement “after the fact” in situations where the payment amount does not decrease due to the adjustment.

The reforms were intended to determine a more favorable tax rate. Initially, the discrepancy between the inventory and cadastral estimates was maximum, the amount differed by 4-5 times. The updated calculation method provides an opportunity to replenish local budgets due to the proximity of the cadastral value of real estate to the market value.

According to experts, owners of properties located in the city center will show significant dissatisfaction. They will have to pay 10 times more. Owners on the outskirts or in residential areas will pay twice as much.

Article 408. Tax Code of the Russian Federation. Procedure for calculating the tax amount

1. The amount of tax is calculated by the tax authorities at the end of the tax period separately for each object of taxation as a percentage of the tax base corresponding to the tax rate, taking into account the specifics established by this article.

2. The amount of tax is calculated on the basis of information submitted to the tax authorities in accordance with Article 85 of this Code.

In relation to taxable objects, the rights to which arose before the entry into force of the Federal Law of July 21, 1997 N 122-FZ “On State Registration of Rights to Real Estate and Transactions with It”, the tax is calculated on the basis of data on the right holders, which are presented in in accordance with the established procedure to the tax authorities before March 1, 2013.

3. If the object of taxation is in common shared ownership, the tax is calculated in accordance with paragraph 1 of this article, taking into account the provisions of paragraph 8 of this article for each of the participants in shared ownership in proportion to his share in the ownership of such object of taxation.

If the object of taxation is in common joint ownership, the tax is calculated in accordance with paragraph 1 of this article, taking into account the provisions of paragraph 8 of this article for each of the participants in joint ownership in equal shares.

4. If during the tax period the taxpayer’s share in the right of common ownership of a taxable object changes, the amount of tax is calculated taking into account the coefficient determined in accordance with paragraph 5 of this article.

5. If a taxpayer acquires (terminates) the right of ownership of property during a tax period, the amount of tax in respect of this property is calculated taking into account a coefficient defined as the ratio of the number of full months during which this property was in the taxpayer’s ownership to the number of calendar months months in the tax period.

If the emergence of the right of ownership of the property occurred before the 15th day of the corresponding month, inclusive, or the termination of the right of ownership of the property occurred after the 15th day of the corresponding month, the month of the emergence (termination) of the specified right is taken as the full month.

If the emergence of the right of ownership of property occurred after the 15th day of the corresponding month or the termination of the specified right occurred before the 15th day of the corresponding month inclusive, the month of emergence (termination) of the specified right is not taken into account when determining the coefficient specified in this paragraph.

6. If a taxpayer acquires (terminates) the right to a tax benefit during a tax period, the tax amount is calculated taking into account a coefficient defined as the ratio of the number of full months during which there is no tax benefit to the number of calendar months in the tax period. In this case, the month in which the right to a tax benefit arises, as well as the month in which this right is terminated, is taken to be a full month.

In the case of an application for a tax benefit, the tax amount is recalculated for no more than three tax periods preceding the calendar year of application, but not earlier than the date the taxpayer becomes entitled to a tax benefit.

7. In respect of property inherited by an individual, the tax is calculated from the date of opening of the inheritance.

Calculation procedure in force until 2018

Changes in the calculation of payments based on the cadastral value of objects affected more than half of the constituent entities of Russia (64). It was proposed to increase tax payments annually by 20%, therefore, in the first year using cadastral valuation, citizens pay property tax using a coefficient of 0.2, and then - 0.4, 0.6 and 0.8.

Namely:

2015 - 20% of the tax amount for 2014 is paid, calculated according to the cadastral value of the object, and 80% is calculated using the old method - according to the inventory value;
2016 - 40% - according to cadastral, 60% - according to inventory;
2017 – 60% to 40%;
2018 – 80% to 20%;
2019 – 100%.

If a citizen does not agree with the new cadastral assessment of his property, then he has the right to file a complaint with Rosreestr. The final authority for resolving a dispute is the court.

In 2022, payments will increase to a maximum of 20% in those entities that used a coefficient of up to 0.6. The rest have been gradually changing rates since 2015; their indicator is set at 0.8. Accordingly, the decline will stop in these regions. Thus, rates will be the same throughout Russia. Now they are differentiated due to the fact that each municipality was gradually included in the program from 2015 to 2022.

As a result of the innovations, the payment is now calculated at a fixed rate, but at the same time, individuals are allowed to pay the amount that was previously calculated based on the results of the BTI inventory assessment. That is, the increase in the mandatory payment will be no more than 10% per year. From 2022, the final tax amount will be adopted.

Rules for calculating tax liability

Adults and children are required to pay tax if real estate is purchased in their name. The benefit can be received by:

pensioners;
disabled people of groups I and II;
combatants;
parents of a child with a disability;
victims of the Chernobyl nuclear power plant;
owners of premises used for cultural purposes;
military personnel.

In a situation where on the taxpayer’s summer cottage there is a building with an area of up to 50 square meters. m., no tax is paid on this object.

Formula and procedure for calculating cadastral value

The amount of property tax for citizens is determined as:

H = (H1 – H2) * K + H2, where

N – property tax that must be paid;
N1 and N2 – taxes calculated based on the cadastral and inventory value of the object, respectively;
K – reduction factor (0.2, 0.4, 0.6).

When calculating the tax, it is necessary to apply deductions for each type of property, that is, the cadastral value of the property will be reduced by a certain amount:

in the room the reduction is made by 10 square meters. m. of the total area;
for the apartment the reduction is made by 20 square meters. m.;
for a residential building - 50 sq. m.;
for a real estate complex - without taking into account the entire area, the reduction will be 1 million rubles.

Each municipality can increase the deduction amount. Therefore, if the reduced amount of real estate exceeds its cadastral value, the tax base will be reset to zero and, accordingly, will not be payable.

For example, the area of the house is 120 square meters. m. The amount of tax according to the old method was 11,400 rubles, the cadastral value is 15,000,000 rubles. A coefficient of 0.6 is applied.

Deduction amount (for a residential building - 50 sq. m.):

10,000,000 / 120 * 50 = 6,250,000 rub.

The rate is 0.15% for objects worth 10-20 million rubles.

The tax base:

15,000,000 – 6,250,000 = 8,750,000 rubles.

H1 = 8,750,000 * 0.15 = 13,125 rubles.

Tax taking into account the reduction factor:

N = (13,125 – 11,400) * 0.6 + 11,400 = 12,435 rubles.

The amount is calculated without applying reduction factors in the following cases:

if the identified amount according to the inventory value (N2) turns out to be greater than that calculated according to the cadastral value (N1);
objects such as shopping and entertainment complexes, business centers, since they are included in the “cadastral list” (with the exception of parking areas located on the territory of shopping centers and office complexes).

Thus, since 2022, amendments to the Tax Code of the Russian Federation regarding the procedure for calculating the amount of property tax on citizens have come into force:

There is a gradual increase in the rate and a reduction in the procedure for determining it, universal for everyone.
The composition of property objects for tax calculation has changed.
Deductions have been introduced for certain types of real estate.
The owner can challenge the cadastral valuation of his property.
The list of beneficiaries has expanded.

From 2022, the tax will be charged on the full cadastral value of the property (minus the cost of 10 sq. m. of a room, 20 sq. m. of an apartment, 50 sq. m. of a residential building), then multiplied by the rate that is determined in a specific municipality. A universal assessment method will help eliminate errors and reduce the number of complaints.

Tax deductions for personal property tax are presented in the video below.

about the author

Grigory Znayko Journalist, entrepreneur. I run my own business and know first-hand the problems and difficulties that individual entrepreneurs and LLCs face.

Article 408. Procedure for calculating the amount of tax (Tax Code of the Russian Federation)

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2. The amount of tax is calculated on the basis of information submitted to the tax authorities in accordance with Article 85 of this Code.

7. In respect of property inherited by an individual, the tax is calculated from the date of opening of the inheritance.

8. The amount of tax for the first four tax periods from the beginning of application of the procedure for determining the tax base based on the cadastral value of the taxable object is calculated taking into account the provisions of paragraph 9 of this article using the following formula:

H = (H1 - H2) x K + H2,

where N is the amount of tax to be paid. In the event of termination of the taxpayer's right of ownership of the specified taxable object during the tax period, the emergence (termination) of the right to a tax benefit, or a change in the share in the right of common ownership of the taxable object, the calculation of the tax amount (N) is carried out taking into account the provisions of paragraphs 4-6 of this article ;

N1 - the amount of tax calculated in the manner prescribed by paragraph 1 of this article, based on the tax base determined in accordance with Article 403 of this Code, without taking into account the provisions of paragraphs 4-6 of this article;

N2 - the amount of tax calculated on the basis of the corresponding inventory value of the object of taxation (without taking into account the provisions of paragraphs 4-6 of this article) for the last tax period for determining the tax base in accordance with Article 404 of this Code, or the amount of property tax for individuals calculated for 2014 year in accordance with the Law of the Russian Federation of December 9, 1991 N 2003-I “On taxes on property of individuals” and attributable to the specified object of taxation, in the case of applying the tax calculation procedure in accordance with Article 403 of this Code starting from January 1, 2015 ;

K - coefficient equal to:

0.2 - in relation to the first tax period in which the tax base is determined in the relevant municipality (federal city of Moscow, St. Petersburg or Sevastopol) in accordance with Article 403 of this Code;

0.4 - in relation to the second tax period, in which the tax base is determined in the relevant municipality (federal city of Moscow, St. Petersburg or Sevastopol) in accordance with Article 403 of this Code;

0.6 - in relation to the third tax period, in which the tax base is determined in the corresponding municipality (federal city of Moscow, St. Petersburg or Sevastopol) in accordance with Article 403 of this Code;

0.8 - in relation to the fourth tax period, in which the tax base is determined in the relevant municipality (federal city of Moscow, St. Petersburg or Sevastopol) in accordance with Article 403 of this Code.

Starting from the fifth tax period, in which the tax base is determined in the relevant municipality (federal city of Moscow, St. Petersburg or Sevastopol) in accordance with Article 403 of this Code, the tax amount is calculated in accordance with this article without taking into account the provisions of this paragraph.

The formula provided for by this paragraph is not applied when calculating tax in relation to taxable items specified in paragraph 3 of Article 402 of this Code (paragraph introduced by Federal Law of November 24, 2014 N 366-FZ - Collection of Legislation of the Russian Federation, 2014, N 48, Art. 6647).

9. If the value of the amount of tax N2 calculated in accordance with paragraph 8 of this article in relation to the object of taxation exceeds the corresponding value of the amount of tax N1, the amount of tax payable by the taxpayer is calculated without taking into account the provisions of paragraph 8 of this article.

(Article 408 was introduced by Federal Law of October 4, 2014 N 284-FZ - Collection of Legislation of the Russian Federation, 2014, N 40, Art. 5315)

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