The consolidated real estate tax (House and Land Tax 2.0) levies income tax on "net capital gains" earned from selling real estate acquired on or after January 1, 2016 (ROC year 105): for resident individuals, holding up to 2 years is taxed at 45%, over 2 years up to 5 years at 35%, over 5 years up to 10 years at 20%, and over 10 years at 15%. For self-use residential properties meeting household registration, ownership, and actual residence for consecutive 6 years, taxable income up to NT$4,000,000 is tax-free, and excess is taxed at 10%. Regardless of profit or loss, declarations must be filed with the National Taxation Bureau within 30 days starting from the day following completion of ownership transfer registration.
Reminder: Holding periods are calculated from "date of completing ownership transfer registration upon acquisition" to "date of completing ownership transfer registration upon sale", not the contract signing date nor property handover date. A difference of just one day can shift the applicable tax rate from 35% up to 45%; verify registered dates before selling. Tax rates and filing rules follow the latest announcements from the Ministry of Finance and National Taxation Bureaus.
Holding Period Tax Rate Table (Individuals)
Under Article 14-4, Paragraph 3 of the Income Tax Act (所得稅法), current tax rates are as follows. This rate schedule took effect on July 1, 2021 (ROC 110) under House and Land Tax 2.0; properties acquired on or after January 1, 2016 (105) but sold before June 30, 2021 (110) follow version 1.0 tax rates.
| Holding Period or Scenario | Resident Individuals | Non-Resident Individuals |
|---|
| Within 2 years | 45% | 45% |
| Over 2 years up to 5 years | 35% | 35% |
| Over 5 years up to 10 years | 20% | 35% |
| Over 10 years | 15% | 35% |
| Sale within 5 years due to job transfer, involuntary termination, or involuntary factors announced by Ministry of Finance | 20% | — |
| Joint construction on owned land with a profit-seeking enterprise, sold within 5 years of land acquisition | 20% | — |
| Urban renewal or dangerous building reconstruction, first transfer of distributed property within 5 years | 20% | — |
| Qualifying self-use residential property concession | Exempt up to NT$4,000,000, 10% on excess | — |
Involuntary factors published on the Ministry of Finance eTax portal include: an individual or spouse purchasing a home and establishing household registration in their workplace area who must subsequently leave due to job transfer or involuntary severance under the Employment Insurance Act; compulsory execution due to inability to pay debts; sale to finance major medical expenses for self, spouse, parents, or minor children suffering severe illness or accidents; or selling self-use residential property to escape a perpetrator after obtaining an ordinary protection order under the Domestic Violence Prevention Act.
How holding period is calculated: The Ministry of Finance clarifies that acquisition date is in principle the date of completing previous ownership transfer registration, and transaction date is the date of completing ownership transfer registration upon sale. Properties acquired through inheritance or bequest may combine the holding period of the decedent or testator (Income Tax Act Article 14-4, Paragraph 4); for properties gifted between spouses, the acquisition date traces back to the date of original acquisition by the spouse.
How Tax is Calculated: Formulas and Trial Calculation
Formulas published by the Ministry of Finance:
- Real estate transaction income = Transaction price − Acquisition costs − Necessary expenses paid for acquisition, improvement, and transfer
- Taxable income = Real estate transaction income − Real estate transaction losses incurred within 3 years prior to transaction date − Total land value increment calculated based on announced land present value
- Tax payable = Taxable income × Applicable tax rate
Costs eligible for inclusion include deed tax, stamp duty, land administration agent fees, official government fees, notarization fees, and brokerage fees paid upon purchase, along with loan interest paid to financial institutions prior to registration completion, and major improvement and renovation expenditures during ownership that increase property value and do not deplete within 2 years. Brokerage fees, advertising expenses, cleaning fees, and moving expenses incurred upon sale qualify as expenses; without supporting documents, the National Taxation Bureau allows standard deduction of 3% of transaction price, capped at NT$300,000 (Income Tax Act Article 14-6). House tax, land value tax, management fees, and mortgage interest paid during ownership cannot be deducted as expenses. For acquisition tax details, see taxes and fees when buying a home.
Trial calculation (unofficial illustrative example): Xiao Wang purchased and registered a property in March 2023 (112), and sold and registered it in October 2026 (115), holding it for over 3 years, applying the 35% rate. Transaction price was NT$18,000,000 (1,800), acquisition cost NT$15,000,000 (1,500), selling expenses NT$400,000 (40), and total land value increment NT$300,000 (30):
- Transaction income = 1,800 − 1,500 − 40 = NT$2,600,000 (260)
- Taxable income = 260 − 30 = NT$2,300,000 (230)
- Tax payable = 230 × 35% = NT$805,000 (80.5)
The total land value increment represents the base on which the seller pays land value increment tax separately, and is therefore deducted from consolidated taxable income to prevent double taxation; for increment tax rules, see how land value increment tax is calculated.
NT$4M Self-Use Exemption: Three Conditions Required
Under Article 4-5, Paragraph 1, Item 1 of the Income Tax Act, self-use residential property owned by an individual, spouse, or minor children qualifies for up to NT$4,000,000 exemption on taxable income and 10% on the excess when meeting all three conditions simultaneously:
- The individual, spouse, or minor children maintain registered household residence, ownership, and continuous actual residence in the home for at least 6 years.
- The property has not been leased out, used for business operations, or utilized for professional practice within 6 years prior to the transaction date.
- The individual, spouse, and minor children have not claimed this self-use tax exemption within 6 years prior to the transaction date.
A common misconception is that the NT$4,000,000 exemption is once-in-a-lifetime. The statutory text states "not claimed within six years prior to the transaction", meaning it is not once-in-a-lifetime. For example, if taxable income is NT$5,000,000 (500): NT$4,000,000 (400) is exempt, and the remaining NT$1,000,000 (100) × 10% = NT$100,000 (10).
Filing Deadlines, Filing Locations, and Penalties
| Item | Regulation |
|---|
| Filing deadline | Within 30 days starting from the day following completion of real estate ownership transfer registration; for pre-sale presold homes, within 30 days from day following transaction date (Income Tax Act Article 14-5). Ministry of Finance example: completing registration on August 1 requires filing by August 31 |
| Mandatory even at a loss | Declaration is mandatory regardless of whether tax is payable; net losses may be deducted against real estate transaction gains over the subsequent 3 years |
| Where to file | National Taxation Bureau of household registration address at time of filing: Taipei City residents file with Taipei National Taxation Bureau; New Taipei City residents file with Northern National Taxation Bureau |
| How to file | Over-the-counter in person, or online via the "Individual House and Land Transaction Income Tax Electronic Filing System" (login methods and credentials per system guidelines) |
| How to pay | Over the counter at authorized financial institutions (post offices do not collect); amounts under NT$30,000 (3) payable at convenience stores; online via chip ATM card, credit card, or demand savings accounts. Taxes due must be paid prior to filing |
| Overdue penalty | Fines of NT$3,000 to NT$30,000; for underpaid tax, fines up to 3 times (3x) the underpaid amount, whichever is higher (Income Tax Act Article 108-2) |
To use Citizen Digital Certificates for online filing, see how to apply and renew Citizen Digital Certificates. Real estate acquired before 2016 (ROC 105) follows the old tax system in principle: house property transaction gains merge into individual income tax, and land gains are exempt from income tax (Income Tax Act Article 4, Paragraph 1, Item 16), without requiring consolidated real estate tax declarations.
Frequently Asked Questions
How many years of holding is most advantageous for consolidated real estate tax?
For resident individuals, holding over 5 years reduces the tax rate to 20%, and over 10 years reduces it to 15%; continuous owner-occupancy with household registration for 6 years qualifies for the NT$4,000,000 exemption and 10% on excess. Holding periods are calculated based on registration dates.
When selling a pre-sale home after handover, does holding start from contract signing?
No. The Ministry of Finance clarifies that acquisition dates for houses and land follow the date of completing ownership transfer registration; pre-sale periods prior to handover registration do not count toward holding periods.
Do I still need to declare consolidated real estate tax if I sell at a loss?
Yes. Under Article 14-5 of the Income Tax Act, declarations must be submitted within 30 days regardless of whether tax is payable; failure to file incurs fines of NT$3,000 to NT$30,000.
How many times can the self-use NT$4,000,000 tax exemption be used?
It is not once-in-a-lifetime; it may be claimed repeatedly provided that the individual, spouse, and minor children have not used the exemption within 6 years prior to the transaction date.
Can I get a tax refund on consolidated real estate tax when upgrading homes?
Selling and repurchasing self-use homes within 2 years allows proportional tax refunds or deductions; see how to apply for replacement home tax refunds.
Last updated: 2026-11-01
This article was compiled by SOSfix editors from public information for general reference only; for individual cases, consult the National Taxation Bureau at your registered household address (Taipei National Taxation Bureau or Northern National Taxation Bureau), or call toll-free national and local tax hotline 0800-000-321.
Sources
- Laws and Regulations Database: Income Tax Act (amended 115-09-11; consolidated tax provisions amended 110-04-28, effective 110-07-01, verified 2026-11-01) (in Chinese): Article 4 Paragraph 1 Item 16, Article 4-4, Article 4-5 self-use terms, Article 14-4 rates and holding periods, Article 14-5 filing deadline, Article 14-6 3% capped at 300,000, Article 108-2 penalties.
- Ministry of Finance: House and Land Tax 2.0 FAQs (verified 2026-11-01) (in Chinese): 2.0 effective July 1, 2021 (110), new vs old system applicability, rate tables, taxable income formulas, allowable costs and expenses.
- Ministry of Finance eTax Portal: Real estate consolidation tax questions 1803–1815 (updated 110-10-08 to 115-08-03, verified 2026-11-01) (in Chinese): filing deadlines, location, transaction and acquisition dates, holding period calculation, self-use concessions, involuntary factors, payment methods and penalties.
- Government Open Data Platform: Northern National Taxation Bureau population and filing statistics (verified 2026-11-01) (in Chinese): service jurisdiction covering 9 cities and counties including New Taipei City.
