How much consolidated housing and land income tax (房地合一稅) will you pay? It depends on two things: how long you have held the property and whether you lived in it. Those two variables move the rate from 45% down to 10%. Many sellers look up the rate table but never work out which row they are in, and learn after signing that they owe hundreds of thousands more than expected.
This guide covers the 2026 rules: how to read the rate, how costs are deducted, the three conditions for the NT$4,000,000 owner-occupier exemption, and the inheritance and gift rules that cause the most errors. Not sure whether you are in this regime or the older property transaction income tax? Read Old vs new capital gains regime first. The interactive calculator is on our Chinese page (https://www.fshouse.com.tw/page/about/index.aspx?kind=383). Rules follow the Ministry of Finance’s published regime and the 21 April 2026 amendment to the filing guidelines, verified July 2026.
What the regime covers
Version 2.0 took effect on 1 July 2021 and applies to houses and land acquired on or after 1 January 2016, including pre-sale contracts and certain share transfers. The gain on house and land is calculated together and taxed separately from your annual income. The shorter the hold, the heavier the rate; hold over 10 years, or qualify as an owner-occupier, and it falls to 15% or 10%.
| Holding period | Rate for individuals resident in Taiwan | Note |
|---|---|---|
| 2 years or less | 45% | Short-term penalty rate |
| Over 2 years, under 5 | 35% | Short to medium hold |
| Over 5 years, under 10 | 20% | Medium to long hold |
| Over 10 years | 15% | Long-term rate |
| Owner-occupier meeting the three conditions | 10% | Taxable gain up to NT$4,000,000 exempt |
Our view: The holding period runs from the acquisition date (the ownership transfer registration date) to the sale date (also the registration date), not the contract date. Inherited and gifted property has its own start-date rules, covered below.
For foreign nationals: the table above is for individuals resident in Taiwan, and the owner-occupier row depends on household registration (戶籍), which most foreign owners do not have. Plan on the holding-period rate and ask us to confirm how your residency status is treated before you price the sale.
How the tax is calculated
Taxable gain = sale price − original acquisition cost − necessary expenses − land value increment amount (the part already taxed under land value increment tax). Multiply the gain by the holding-period rate to get the tax.
Cost: keep every receipt
The acquisition cost is the price you paid, plus deed tax, stamp duty, land administration fees, registration fees, notarisation fees, agent fees, and mortgage interest paid before transfer registration. Value-adding renovation after purchase (not the kind used up within 2 years) also counts. Without receipts, the tax office estimates from its own data, which usually works against you.
No expense receipts? 3%, capped at NT$300,000
If no expense proof is provided, or the proof is below 3% of the sale price, the tax office allows 3% of the sale price, capped at NT$300,000. The 21 April 2026 amendment kept this cap and added an anti-avoidance clause: where a property is deliberately split into partial shares sold separately, the cap is reduced in proportion to the share. If your real expenses exceed NT$300,000, keep the receipts and claim the actual amount.
The owner-occupier exemption: NT$4,000,000 at 0%, then 10%
For a qualifying owner-occupied home, taxable gain up to NT$4,000,000 is fully exempt and only the excess is taxed at 10%. Under Article 4-5 of the Income Tax Act, all three conditions must be met:
- Registered and living there 6 continuous years. You, your spouse or minor children have household registration at the property and have actually lived in it for 6 continuous years. Moving out and back breaks the count and restarts it.
- No letting or business use in the 6 years before sale. Any letting, business registration or professional use disqualifies.
- Once in 6 years. You, your spouse and minor children have not used this exemption in the 6 years before the sale.
Our view: NT$4,000,000 is a deduction, not a cliff. It comes off the taxable gain first, and only the remainder is taxed at 10%. Crossing NT$4,000,000 does not make the whole gain taxable.
The practical checklist for this exemption is in The NT$4 million self-use exemption.
Inherited and gifted property: the section most often filed wrong
Inherited or gifted property is not taxed at a flat 20%. It uses the same 45/35/20/15% table. What differs is how the holding period is counted, and inheritance and gift follow opposite rules.
Inheritance or bequest: you add the deceased’s holding period to your own; the clock does not restart on the day you inherit. For consecutive inheritances (grandfather to father to you), every previous holder’s period can be combined, under the Ministry of Finance ruling of 2 November 2023.
Gift (ordinary, not between spouses): the holding period restarts on the gift registration date. You cannot add the donor’s years. Applying the inheritance rule to a gift is a costly mistake.
Example: a parent bought in March 2016, you inherited in 2026 and sell in 2027. Counting from March 2016 the holding period exceeds 10 years, so the 15% rate applies. But if the parent acquired before 2016 (say 2010), the sale after inheritance falls under the old property transaction income tax, outside this table.
Cost is the other trap. For inherited property, cost is the assessed house value plus the announced land value at the date of death; for gifted property, the same values at the date of the gift. Neither is market value. Estate tax and related questions are covered in Selling an inherited property and Gift tax on property.
Repurchase refund for movers
If you sell an owner-occupied home and buy another within 2 years, in either order, you can claim a refund: the full tax if the new home’s price is equal to or higher than the old one’s, a proportion if lower. The household must be registered and living at the property, and both sale and purchase must be in your name or your spouse’s or minor children’s. See Repurchase tax refund.
Worked example: Mr Wang’s owner-occupied home produces a taxable gain of NT$6,000,000. Deduct the NT$4,000,000 exemption, tax NT$2,000,000 at 10%, and the bill is NT$200,000. Without the exemption, held under 5 years at 35%, the same gain costs NT$2,100,000, a gap of 10.5 times.
Filing deadline and common mistakes
File within 30 days of completing the transfer registration. Late filing carries a surcharge and late payment a further penalty. Bring the sale contract, cost and expense receipts, and identity documents; add household registration proof if you claim the exemption.
Common errors: reporting market value as the cost of an inherited home; losing receipts and forfeiting deductions; breaking the owner-occupier conditions (a single day of letting counts); forgetting that the land value increment amount is deductible; and filing after 30 days. Before signing, also confirm the escrow (履約保證) arrangement and total costs; see Escrow explained and Buying and selling costs.
FAQ
What are the rates?
By holding period: 45% within 2 years, 35% for 2–5 years, 20% for 5–10 years, 15% over 10 years. Qualifying owner-occupiers pay 10%, with taxable gain up to NT$4,000,000 exempt.
What are the conditions for the NT$4,000,000 exemption?
Household registration and 6 continuous years of residence by you, your spouse or minor children; no letting or business use in the prior 6 years; and no use of the exemption by any of you in the prior 6 years. Miss one and it does not apply.
What if I have no expense receipts?
The tax office allows 3% of the sale price, capped at NT$300,000, reduced proportionally where partial shares are sold separately to avoid tax. If your real expenses are higher, keep receipts and claim them.
How is an inherited home taxed?
The same table applies, with the deceased’s holding period added to yours. A gift from anyone other than a spouse restarts the period at the gift registration date. Cost is the assessed value at inheritance or gift, not market value.
How does this differ from property transaction income tax?
The acquisition date decides: acquired in 2016 or later, this regime applies and is taxed separately; acquired before 2016, the old regime applies and the gain joins your income tax return.
What are the repurchase refund conditions?
Sell and buy an owner-occupied home within 2 years, in either order, with household registration and residence there. A new home priced at or above the old one gives a full refund; a cheaper one gives a proportional refund.
Conclusion
The two questions are always how long you held and whether you lived there. On the same NT$6,000,000 gain, 10% and 35% differ by more than ten times. Calculate before you sign, so closing day does not reveal a bill your cash flow cannot cover. Contact us for a free check of your case.