House Tax — Key Overview
1) Definition
House Tax is a local tax levied on the owner of a building. It is calculated as assessed house value × applicable tax rate and collected by the local tax authority where the property is located.
2) Taxable Properties
All fixed buildings that can be used for residence, offices, business operations, rental, storage, or similar purposes—such as houses, commercial buildings, factories, and warehouses— are subject to House Tax.
3) Tax Base & Rates
Tax base: Assessed house value, determined by local governments based on construction cost, depreciation, location, and related factors.
| Usage | Tax Rate | Notes |
|---|---|---|
| Owner-occupied residence | 1.2% | Household registration at the property; owned by the taxpayer, spouse, or lineal relatives; not rented or used for business |
| Rental residence | 2% | Used for residential rental purposes |
| Business use | 3%–5% | Rates may vary by local government |
| Non-residential / non-business (e.g. vacant) | 1.5%–3.6% | Subject to local regulations |
| Public welfare / religious / educational use | Tax-exempt | Approval required |
4) Payment Period
- The annual levy period is May 1 to May 31.
- Late payment incurs daily surcharges (up to 15%). After 30 days, enforcement actions may apply.
5) Requirements for the 1.2% Owner-Occupied Rate
- The taxpayer, spouse, or lineal relatives are registered as residents at the property.
- The property is not rented out and not used for business.
- In principle, one qualifying property per household.
- An application or change of use must be filed in advance with the local tax authority.
6) Relationship Between House Tax and Land Value Tax
- House Tax applies to the building itself; Land Value Tax applies to the land.
- If both house and land are owned, the two taxes are levied separately and cannot offset each other.
7) Common Practical Notes (Broker’s Perspective)
- Owner-occupied clients: register residence and apply for the 1.2% rate; it applies from the next tax period.
- Rental properties: subject to the 2% rate; rental income reporting should also be noted.
- Short-term vacancy: in some areas, rates may reach up to 3.6%.
- Co-ownership: tax liability is apportioned by ownership share; bills are sent to the primary contact address.
- New construction: tax registration should be filed promptly to avoid retroactive assessment.
8) Exemptions & Reductions
- Approved public welfare, religious, or educational uses may qualify for tax exemption.
- Properties damaged by disasters or demolished for reconstruction may apply for reduction or deferral.
- Publicly owned buildings used for public purposes are tax-exempt.
9) Example Calculations
- Owner-occupied: Assessed value 5,000,000 × 1.2% = NT$60,000 per year
- Rental use: Assessed value 5,000,000 × 2% = NT$100,000 per year