Ivan Tsvetkov, Head of the Tax Compliance practice area, told RIA Real Estate how to pay property tax correctly in 2024. We publish a detailed note from our expert and tell you everything that is important to know about this tax. 

What property is subject to this tax? 

Individual property tax is imposed exclusively on immovable property, namely: a residential house, apartment, room, garage, parking space, a single real estate complex, construction in progress, other buildings, structures, facilities and premises (Article 401 of the Tax Code of the Russian Federation). 

Who pays property tax? 

Property tax payers are owners of immovable property recognized as an object of taxation (Article 400 of the Tax Code of the Russian Federation). There may be a situation when the owner, for example, of an apartment or a residential house, is a minor, incapacitated or limited in capacity citizens. 

In such cases, the obligation to pay property tax is imposed on the legal representatives of these individuals. These are parents, adoptive parents, guardians and custodians. 

If the property is in shared ownership, property tax is payable in proportion to the respective shares (Article 408 of the Tax Code of the Russian Federation). 

Certain benefits are provided for children with disabilities, as well as children receiving a survivors pension. If such a child owns several properties of the same type (two residential houses), property tax will have to be paid only on one of them (Article 407 of the Tax Code of the Russian Federation). 

What are the property tax rates? 

Tax legislation establishes the following property tax rates, which depend on the type of object and its value (Article 406 of the Tax Code of the Russian Federation): 

0.1% - in respect of residential houses, apartments, construction in progress, single immovable complexes, garages and parking spaces, as well as outbuildings or structures, the area of each of which does not exceed 50 square meters, intended for personal use;

2% - in respect of real estate objects with a cadastral value of more than 300 million rubles, as well as objects included in the approved list (from 2025 the rate will be 2, 5%);

0,5% - in respect of other real estate objects. 

Tax rates may be reduced by relevant regulatory legal acts of local authorities (reduced to zero or increased, but not more than three times). 

For example, in Moscow in 2024 the following property tax rates are set for apartments, rooms and residential houses: 

0,1% - up to 10 million rubles. 

0.15% - from 10 to 20 million rubles. 

0,2% - from 20 to 50 million rubles. 

0,3% - from 50 to 300 million rubles. 

For any real estate objects with a cadastral value of more than 300 million rubles the property tax rate in Moscow is 2%. 

How to calculate property tax by cadastral value? 

Individuals are not obliged to calculate the property tax payable on their own. This is done by the tax office on the basis of the cadastral value of the property, information about which can be found out by any person by ordering the relevant extract from the Unified State Register of Registrars or by looking at the official website of Rosreestr. 

In case a person disagrees with the cadastral value of an object (for example, it is repeatedly deviated from its market value), it can be challenged in the assessment commission or in court. 

In addition, the cadastral value is regularly revised: in most regions every four years. In Moscow, St. Petersburg and Sevastopol - every two years. Thus, from 01. 01. 2024 in Moscow the new results of determination of the cadastral value of all real estate objects are in effect. 

Property tax for individuals is calculated as follows (Art. 408 of the Tax Code of the Russian Federation): 

Tax payable = cadastral value of the object after deduction X tax rate X the coefficient of the period of ownership X the size of the ownership share in the object. 

Example: An individual owns an apartment located in Moscow starting in 2022. The individual is the sole owner of the apartment. The cadastral value of the apartment is 15 million roubles and its area is 50 square meters. m. The area of the apartment subject to property tax after application of the tax deduction is 30 square meters (50 square meters - 20 square meters). The cadastral value after the deduction is 9 million rubles (15 million rubles X 0, 6). The tax rate for apartments whose cadastral value is less than 10 million rubles is 0, 1%. 

Thus, the tax payable will be 9, 000 rubles = 9, 000, 000 X 0, 1%. 

What benefits and deductions are available for property tax? 

Individuals are entitled to take advantage of a tax deduction, which provides that property tax is not taxable (Art. 403 of the Tax Code of the Russian Federation): 

50 square meters when owning a residential house;

20 square meters when owning an apartment;

10 square meters when owning a room. 

That is, in a residential house of 120 square meters only 70 square meters are taxable. One tax deduction is granted for each real estate object, it does not depend on the number of owners and whether the owners belong to the privileged category. 

The cadastral value of the property in the tax notice, which you will receive by mail with the receipt for tax payment, will already be reduced by the cadastral value of the tax deduction. 

Large families with many children are entitled to an additional tax deduction. For each minor child is entitled to the following tax deduction: 

7 square meters - for a residential house or its part;

5 square meters - for a room, apartment or its part. 

In addition, certain individuals are also entitled to take advantage of property tax exemptions. Such persons include pensioners, disabled persons, veterans, participants of the Social Security Service and their families (the full list of persons who can take advantage of the relevant benefits is specified in Article 407 of the Tax Code of the Russian Federation). 

Preferential categories of citizens are exempt from paying property tax: 

one apartment or room;

one dwelling house

one garage or parking space. 

That is, the owner of, for example, two apartments, one residential building and one parking space will pay property tax only on one apartment. The benefit does not apply to real estate objects, the cadastral value of which exceeds 300 million rubles. 

What is the deadline for paying property tax? 

Property tax is due no later than December 1 (Article 409 of the Tax Code of the Russian Federation). If the payment date falls on a weekend or a public holiday, the deadline falls on the next working day. 

In 2024, property tax must be paid by December 2. Individuals pay the tax for the previous year. Therefore, the current years property tax is paid for 2023. 

How to pay property tax? What to do if there is an overpayment? 

Currently, a taxpayer can pay property tax in any convenient way: 

through a personal account on the website of the Federal Tax Service of Russia;

on the portal of state services;

through a banking application or a bank branch. 

The made payment is credited to the individual's Unified Tax System, from where the required amount is automatically deducted to the tax payment account of the tax due. In other words, the taxpayer cannot independently determine which tax the amount paid by the individual should go to the tax payment account. 

In case you have paid more money than necessary, your overpayment can be left to the Unified Tax Service, as it can be used to repay future tax liabilities (e. g., transportation tax or personal income tax). However, the taxpayer can also refund the overpaid tax amount. 

What happens if I fail to pay property tax? 

If you fail to pay the property tax by December 1 (in 2024 - by December 2), then from the next calendar day the accrued tax turns into a debt, on which penalties for each day of missing the payment deadline begin to accrue. 

In addition, a penalty of 20% of the arrears may be assessed, and if the tax office proves that the tax was not paid intentionally, it will assess a penalty of 40% of the amount owed (Article 122 of the Tax Code of the Russian Federation). 

The tax office will send the debtor a demand to pay the arrears, penalties and fine. If the individual ignores and fails to fulfill this demand, the tax amount will be collected by the inspectorate in court.