Scope of Taxation
The house tax is levied on buildings and construction that strengthens the utility of buildings attached to the land situated in the territory of Taiwan.
Taxpayer
The taxpayers of the house tax are:
- The owner of the building.
- For a right-of-use house with superficies registered on the land thereof, the house tax shall be collected from the holder of such right-of-use.
- The Dien Right assignee of the building with a Dien Right established.
- The joint owners of the building jointly owned by more than one person. The joint owners shall designate one of them to pay the tax on their behalf; otherwise, the present occupant or user shall pay the tax on behalf of the joint owners.
- The builder indicated in the use license of the building which has never had ownership registered and the owner is unknown. In the case where a use license has not been issued, the builder indicated in the construction license is the taxpayer. In the case where no construction license has been issued, the current occupant or manager will be the taxpayer.
- If the whereabouts of the owner or Dien Right assignee of the building is unknown or not domiciled in the locality where the building is located, the house tax shall be paid by the manager or present occupant of the building. In the case where the building is rented, the house tax shall be paid by the tenant and deducted from the rent payable to the owner.
- In the case where the building is a trust property and the trust is in force, the taxpayer of its house tax shall be the trustee. In the case there are two or more trustees, the provision of joint ownership shall apply.
Tax Base
The house tax is levied on the government-assessed value of the building at the applicable tax rate. The government-assessed value is not the market value of the building, but is the value as assessed by the local tax office based on the standard value assessed by the real estate assessment committee.
Tax Rates
For a building that is used for both residential and non-residential purposes, the house tax is levied at the applicable rates, and the calculation is based on the actual area used for each purpose. However, the taxable non-residential area may not be less than one-sixth of the total area.
The house tax rates are as follows:
| Building |
Purpose |
Maximum Rate |
Minimum Rate |
Actual Rate Enforced |
| Residential Purpose |
Owner-occupied Residence and Rent for Public-Welfare Purposes |
1.2% |
1.2% |
1.2% |
| Residential Purpose |
If only one house is owned per person, his/her spouse, and his/her minor children in the whole country, which is used for residential purposes by the owner with the current value thereof below a certain threshold. |
1% |
1% |
1% |
| Residential Purpose |
A house with a declared rental income reaching the local prevailing rental standard specified for Category 5 under Paragraph 1, Article 14 of the Income Tax Act, or for a jointly-owned house acquired through inheritance. |
2.4% |
1.5% |
Note1
Note2 |
| Residential Purpose |
A house for sale whose use is for residential purposes as stated in the Usage License held by the builder within two (2) years of the house tax becoming payable. |
3.6% |
2% |
Note1
Note2 |
| Residential Purpose |
For other houses used for residential purposes. |
4.8% |
2% |
Note1
Note2 |
| Non-residential Purpose |
Business, Private Hospitals, Clinic, or a Professional Office |
5% |
3% |
Note1 |
| Non-residential Purpose |
Non-business |
2.5% |
1.5% |
Note1 |
Note 1: Where municipal and county (city) governments adjust the actual rate enforced, the adjusted rate should be applicable.
Note 2: Municipal and county (city) government shall stipulate different rates based on the number of taxable houses nationwide owned by taxpayers under each item or other reasonable needs.
Tax Exemptions
The house tax is not levied on the following private buildings:
- Private buildings used and owned by schools or private houses for office use by private schools or academic research institutes which have been registered with the government as a foundation or non-profit organization.
- Private buildings used and owned by non-profit charitable organizations' use which have been registered with the government as a foundation or non-profit organization.
- Buildings used as shrines for worship or as churches or temples by religious organizations. The shrines, churches, or temples have to be registered with the government, and the buildings must be owned by the religious organizations themselves.
- Buildings offered without compensation to government organizations for public or military use.
- Buildings used as offices owned by non-profit public welfare organizations. However, except for the labour union set up in accordance with the Labour Union Law approved by the local government as tax exempt, where the beneficiaries are townsmen, classmates, or people from the same industry or the same town, the house tax is not tax exempt.
- Buildings for livestock farming, greenhouses for cultivating agricultural products and rooms for growing rice seedlings, places of agricultural reproduction, water pumps, barns for smoking tobacco, buildings for drying rice and tea leaves, and buildings for storing agricultural machines and dung heaps, etc.
- Buildings of which more than 50% of the floor area has been destroyed by a disaster, and which must be repaired before it is usable.
- Up to three houses for residential purposes each with a current value of NT$100,000 or less owned by a natural person in the whole country. However, the government-assessed value may be re-assessed according to relevant regulations, and the adjustment amount may be rounded to the next thousand.
- Warehouses of farmers' associations used exclusively for the storage of public rice by the relevant food administration, as attested to by the competent authorities.
- Buildings acquired by the trustee with regard to a public welfare trust created under the approval of competent authorities for holding public welfare activities.
Tax Reductions
The house tax will be reduced by 50% of the amount levied for the following private buildings:
- Buildings owned by a duly-registered factory and used directly for production.
- Warehouses and buildings used for testing purposes which are owned and used by a farmers' association as attested by the competent authorities.
- Houses of which 30% or more but less than 50% of the floor area have been destroyed in a disaster.
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