The land value increment tax is paid by the seller upon land transfer based on the "total land value increment": general land is taxed progressively in three brackets at 20%, 30%, and 40% according to the increment multiple; selling self-use residential land qualifies for a preferential 10% tax rate. There are two types of 10% concessions: "once in a lifetime" (within 3 ares for urban land, 7 ares for non-urban land, limited to once per person in a lifetime) and "one house for life" usable after exercising once in a lifetime (within 1.5 ares for urban land, provided the owner, spouse, and minor children own only this single home, with registered residence and holding for at least 6 years). To claim the 10% rate, you must indicate self-use residential land on the land present value declaration, or file a supplemental application at latest before the payment deadline on the tax bill expires.
Reminder: If the property has been leased or used for business within 1 year before sale (5 years for one house for life), the 10% rate cannot be used; public interest leasing and social housing sublease and entrustment management are also considered leasing. The 2‰ self-use residential rate for land value tax and the 10% land value increment tax are different tax categories: even if land value tax has been approved for self-use residential rates, selling land still requires indicating and applying on the land present value declaration under Article 34-1 of the Land Tax Act (土地稅法) (compiled herein based on statutory provisions). Tax rates and qualifications follow the latest announcements from the Ministry of Finance, Taipei City Revenue Service, and Revenue Service Bureau of New Taipei City Government.
How Land Value Increment Tax is Calculated: Formulas and Rates
Total land value increment = Declared transfer present value − Previous transfer present value (or original regulated land value) adjusted by consumer price index (CPI) − Land improvement expenses, engineering betterment fees, etc. (Land Tax Act Articles 31 and 32). Declared transfer present value is generally the announced land present value during the contract period × your shared land area (Article 30, for declarations filed within 30 days of contract date).
Tax rates depend on the multiple of the total increment relative to the adjusted previous transfer value (Article 33):
| Bracket | Increment Multiple | Tax Rate | Quick Calculation Formula (Holding under 20 Years) |
|---|
| Bracket 1 | Under 100% | 20% | Total increment × 20% |
| Bracket 2 | 100% to under 200% | 30% | Total increment × 30% − Adjusted previous transfer value × 0.10 |
| Bracket 3 | 200% and above | 40% | Total increment × 40% − Adjusted previous transfer value × 0.30 |
| Self-use residential land | Regardless of multiple | 10% | Total increment × 10% (within area limit) |
Long-term holding reduction: When holding land for over 20 years, 30 years, or 40 years, the tax amount exceeding the lowest tax rate (20%) is reduced by 20%, 30%, and 40% respectively (Article 33, Paragraphs 6 to 8). In the quick calculation formula of Appendix 5 of the Enforcement Rules of the Land Tax Act, the progressive difference coefficient of 0.10 for Bracket 2 is modified based on holding years to 0.08, 0.07, and 0.06; the 0.30 coefficient for Bracket 3 is modified to 0.24, 0.21, and 0.18, with corresponding reductions in tax rates.
Trial calculation (unofficial illustrative example): Suppose a shared parcel has an adjusted previous transfer present value of NT$4,000,000 (400), a current declared transfer present value of NT$10,000,000 (1,000), and a total land value increment of NT$6,000,000 (600), which represents 150% of NT$4,000,000, falling under Bracket 2.
- General tax rate, held under 20 years: 600 × 30% − 400 × 0.10 = NT$1,400,000 (140)
- General tax rate, held over 20 years: 600 × (30% − 10% × 20%) − 400 × 0.08 = NT$1,360,000 (136)
- Self-use residential 10%: 600 × 10% = NT$600,000 (60)
Once in a Lifetime: Conditions for 10% Self-Use Residential Rate
Under Articles 9 and 34, Paragraphs 1 to 4 of the Land Tax Act and Article 4 of its Enforcement Rules, all the following must be met simultaneously:
- The land ownership holder, spouse, or lineal relative has completed household registration at the property.
- The property has not been leased out or used for business operations within 1 year prior to sale.
- The building upon the land belongs to the land ownership holder, spouse, or lineal relative.
- Within 3 ares for urban land (300 square meters, approx 90.75 ping [1 ping ≈ 3.3 m²]), or within 7 ares for non-urban land (700 square meters); portions exceeding limits are taxed at general rates.
- The assessed present value of the building must equal at least 10% of the announced land present value of its occupied base; however, buildings completed for over 1 year are exempt from this limit.
- Limited to once per person in a lifetime.
One House for Life: Using 10% Again After Once in a Lifetime
Article 34, Paragraph 5 of the Land Tax Act provides that individuals who have already used the once-in-a-lifetime concession can still qualify for 10% when selling self-use residential land again, provided all the following conditions are met:
| Condition | Once in a Lifetime | One House for Life |
|---|
| Area limit | Urban 3 ares, non-urban 7 ares | Urban 1.5 ares, non-urban 3.5 ares |
| No lease/business period | Within 1 year before sale | Within 5 years before sale |
| Other properties owned | No restriction | At time of sale, the owner, spouse, and minor children own no other house besides this property |
| Holding and residence | Household registration required | The owner has held land for over 6 years; owner, spouse, or minor children maintain registered residence and own the home continuously for at least 6 years |
| Eligible registered residents | Owner, spouse, or lineal relative | Owner, spouse, or minor children |
| Usage frequency | Once in a lifetime | Applicable whenever conditions are met, not limited to once |
How to Apply, Deadlines, and Taipei & New Taipei Windows
- Declaring present value: Buyer and seller must jointly declare the land transfer present value to the tax revenue authority within 30 days of contract signing (Article 49, Paragraph 1).
- Applying for 10%: Indicate self-use residence on the land present value declaration and attach building improvement proof documents; if not indicated, supplemental application may be submitted before the tax payment deadline expires, after which it cannot be applied (Article 34-1).
- Assessment and payment: The tax authority assesses within 7 days of receipt, extendable to 20 days for self-use rate applications (Article 49, Paragraph 2); payment must be made within 30 days of receiving the tax notice (Article 50). Transfer registration can only be processed after full payment.
New Taipei: Documents required by New Taipei City Revenue Service include the land value increment tax (land present value) declaration form, transfer contract, copies of identity documents of both parties, land owner's non-leasing statement, resident's lease relationship statement, and building improvement proof documents; one house for life additionally requires an Article 34, Paragraph 5 statement. Processing takes 14 days for general cases and 20 days for cases requiring on-site inspection. The New Taipei City Revenue Service website also offers queries on whether preferential self-use rates have been used and tax-saving health checks. Taipei: Apply to the Taipei City Revenue Service, head office telephone 02-2394-9211; public processing times for Taipei City were not found in published materials, so call to confirm required documents prior to filing.
If planning to replace homes, you may pay general rates first and apply for reinvestment tax refunds later to preserve the once-in-a-lifetime quota; see how to apply for replacement home tax refunds. Consolidated real estate tax deducts total land value increment; see how consolidated real estate tax is calculated; for land value tax 2‰ applications, see how to apply for 2‰ self-use land value tax.
Frequently Asked Questions
Who pays land value increment tax?
For sales (onerous transfers), the original owner (the seller) pays; for gifts (gratuitous transfers), the person acquiring ownership pays (Land Tax Act Article 5). Inherited transfers are exempt from tax (Article 28).
What is the difference between once in a lifetime and one house for life?
One house for life is only usable after once in a lifetime has been exercised; the land area ceiling is halved, and the owner, spouse, and minor children must own no other home, maintain registered residence and ownership for 6 years, and have no leasing or business use for 5 years prior to sale.
What should I do if I forgot to apply for the self-use tax rate?
Submit a supplemental application to the tax authority where the land is located before the payment deadline specified on the land value increment tax payment bill expires; once the deadline passes, only general rates can apply.
Does the long-term holding 20-year reduction also apply on top of the 10% self-use rate?
No. Reductions only apply to the portion of tax exceeding the lowest basic tax rate of 20%; the self-use rate of 10% is already lower than the lowest general bracket.
Last updated: 2026-11-01
This article was compiled by SOSfix editors from public information for general reference only; for specific cases, consult the tax collection authority where the land is located (Taipei City Revenue Service at 02-2394-9211, Revenue Service Bureau of New Taipei City Government at 02-8952-8200, toll-free 0800-580739), or call toll-free national and local tax hotline 0800-000-321.
Sources
- Laws and Regulations Database: Land Tax Act (amended 114-01-24, verified 2026-11-01) (in Chinese): Articles 5, 9, 28; Articles 30 to 33 total increment, price index adjustments, tax rates and long-term holding reductions; Article 34 once in a lifetime and one house for life; Article 34-1 application deadline; Articles 49 and 50 declaration, assessment, and payment deadlines.
- Laws and Regulations Database: Enforcement Rules of the Land Tax Act (amended 110-09-23) and Appendix 5 calculation formula for land value increment tax (verified 2026-11-01) (in Chinese): Article 4 building ownership, Article 53 and Appendix 5 quick calculation formulas and reduction coefficients, Article 54 assessed present value standards.
- Taipei City Revenue Service: What are the conditions for applying once-in-a-lifetime self-use residential rate? (updated 113-02-06, verified 2026-11-01) (in Chinese): conditions and baseline date 1 year prior to sale.
- Taipei City Revenue Service: How long after terminating lease can preferential rate apply? (updated 111-02-17, verified 2026-11-01) (in Chinese): cessation of leasing for full 1 year.
- Ministry of Finance eTax Portal: Tax savings guide! Master preferential rate conditions for self-use residential land (New Taipei City Revenue Service, 115-09-22, verified 2026-11-01) (in Chinese): public interest leasing and social housing counting as leasing; application deadline before payment due date.
- Revenue Service Bureau of New Taipei City Government: Handling land value increment tax applications for self-use residential land (updated 112-02-20, verified 2026-11-01) (in Chinese): once in a lifetime and one house for life criteria, required documents, processing days, branch telephone numbers.
- Revenue Service Bureau of New Taipei City Government: Tax savings health check - Am I eligible for one house for life? (verified 2026-11-01) (in Chinese): inquiry into past records of preferential rates, toll-free hotline 0800-580739.
Related reading: Taiwan Gift Tax Annual Exemption: Rules for Parents & Child
