Ministry of Finance proposed raising the maximum personal income tax rate on real estate sales to 22%

Currently, income from real estate sales is taxed separately at rates of 13–15%. The Ministry of Finance proposes including it in the general progressive personal income tax scale together with salaries and other income.

Under the proposal, annual income up to 2.4 million rubles will be taxed at 13%, from 2.4 million to 5 million — 15%, from 5 million to 20 million — 18%, from 20 million to 50 million — 20%, and over 50 million — 22%. The changes could come into force on January 1, 2027.

The tax exemption after the minimum ownership period remains in place. Usually it is five years, and for a primary residence, inheritance, or a gift from a close relative — three years; if purchased real estate is sold earlier, the tax is calculated from the difference between the sale and purchase prices.

Sources

• Novaya Gazeta Europe