How to calculate land tax: basic formula and nuances?

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How land tax is calculated is a pressing issue. Tax legislation (Article 388) states that it is necessary to pay land tax to both individuals and legal entities who own land plots. The same applies to those citizens who have the right to lifelong use of land or the same inheritance.

What is land tax?

This tax is determined by Chapter 31 of the Tax Code, regulations at the local level, and laws of cities with federal significance (St. Petersburg or Moscow).

The amount of land tax does not depend in any way on the financial condition of the owner of the land, and even on the amount of profit he receives from using it.

It depends only on objective factors, including the location of the site, its fertility, etc.

Taxpayers of this tax are ordinary citizens (individuals). As well as organizations or enterprises, individual entrepreneurs who are owners of plots.

Only those citizens who have state registration documents in their hands are entitled to this. They are the reason for charging land tax.

The tax should not be paid by persons with any legal status who use land under the right of free temporary use or lease. In the latter case, citizens who rent land pay only rent.

The object of taxation can be considered a plot of land that is located in the territory where this tax is introduced.

The procedure for calculating land tax

Calculating land tax is the responsibility of the owner when preparing a tax return. This is a fairly simple procedure, and it is almost impossible to make a mistake. The owner finds his property by number or address in the Rosreestr database and finds out its value from the state cadastre. Then all that remains is to multiply it by the tax rate and fill in all the necessary fields in the declaration.

Calculation formula: cadastral value * tax rate.

To simplify calculations as much as possible, you can use the land tax calculator on the tax service website. This is a very simple form where you enter sequentially:

• type of tax;
• reporting period;
• cadastral number;
• cost according to the cadastre;
• area in sq.m;
• share size;
• holding period;
• tax deduction (if any);
• rate;
• benefit amount.

The tax calculator will calculate the amount due in a few minutes, provided that you know all the necessary data. Most of the information can be found on the Rosreestr website.

The most convenient way to calculate land tax is to use the calculator on the Federal Tax Service website

The tax base

The tax base in this case is the cadastral value of the land plot as of January 1 of the reporting year. This value is set by the state and is almost always significantly lower than the market value. The size is influenced by the area, location and type of site.

Sometimes taxpayers wonder how to calculate the cadastral value of a land plot on their own. There is no need to count manually; just enter the address of the site on the Rosreestr website. It is relevant not only for calculating mandatory payments to the budget, but also for determining the selling price.

Interest rate

The rate is set by federal and local authorities. The federal ones set a limit above which the rate cannot be set, and the local ones set a specific percentage. There are currently two borders:

• Not higher than 0.3%. For agricultural land, housing, subsidiary plots. As a rule, the tax of individuals does not exceed this value.
• 1.5%. All other objects that do not fall into the first group.

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Calculation examples

Calculation and payment of land tax is the responsibility of the owner. Thanks to modern tools, this is very easy.

An example of calculating land tax based on cadastral value:

1. Go to the website rosreestr.net and enter the site number or address (if the number is unknown) into the search bar.
2. In the card that opens, you will see all the required data - area, cost and approximate payment amount.
3. Find the local government regulations regarding tax rates in your locality. Find out what rate your property is entitled to - 0.1, 03, 1.5 or some other.
4. If you have benefits, it would be better to use the calculator on the Federal Tax Service website.
5. If there are no benefits, calculate manually.
6. Let’s assume that the cost of the plot was 722,100 rubles, the rate was 0.1%. 722,000 x 0.1% = 722.1 rubles.

How to find out the land tax rate?

To find out how this tax is calculated, you need to have the following information:

• cadastral value of land;
• tax rate.

This is stated in Articles 390, 394 and 396 of the Tax Code of the Russian Federation.

From 2020, only legal entities (organizations) must independently calculate the amount of land tax. Individual entrepreneurs and individuals who own plots of land can rely on tax inspectors - now they are the ones doing this.

Such norms are provided for in Article 396 of the Tax Code and are mandatory throughout the country, regardless of regional laws.

The tax rate depends on the legal acts that have been adopted by local authorities. Changes in the tax rate are allowed for different types of land plots.

How is land tax paid by legal entities calculated using online resources?

Land tax paid by legal entities is calculated independently by the organization's employees. To make the task easier, you can use a variety of online calculators available on many sites. To find such a calculator, just place the query “ How to calculate land tax ” in any search engine.

IMPORTANT! You can use online calculation in the absence of any additional conditions, such as special coefficients.

There is one more calculation option - a pre-prepared table in MS Excel with all the conditions applicable to the occupied land plot. This option is the most versatile.

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So, from our article you learned how land tax is calculated by organizations. It is worth noting that knowledge of tax legislation alone is not enough for this - it is necessary to study other regulations.

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How to find out the cadastral value of a plot for land tax?

The indicated value of land is established by the legislation of the Russian Federation on the basis of cadastral valuation. This procedure is carried out by local authorities and constituent entities of the Federation in accordance with the norms of current legislation.

The specified cost is determined according to the following regulations:

1. Once every five years, the executive services of the subject of the federation must conduct a state cadastral valuation of the land.
2. The list of sites that need to be assessed is prepared by the Rosreestr Office. Each object must be presented separately in the list.
3. After approval of the list, it is necessary to conduct a cadastral assessment. The information that was received after this procedure must be sent to the Rosreestr Office.
4. The Rosreestr Office should publish this cost of land on the official website. Access to this data should be shared.

In each subject of the Russian Federation, this procedure is carried out separately, so the cost of land in different regions may differ.

This procedure applies only to individuals, since legal organizations and individual entrepreneurs must independently calculate the cost of land based on legal norms and guided by the real estate cadastre.

How is land tax calculated for the year?

Formula for calculating land tax

To calculate land tax for the year, you can use the formula:

ZN=KSZU*SZN, where:

ZN – land tax;

KSZU – cadastral value;

SZN – rate.

If the tax is calculated on a land plot that is owned by different municipalities, then its amount must be determined based on each part of it.

This is indicated by paragraph one of Article 396 of the Tax Code.

The procedure for calculating and paying tax on a plot of land

So how to calculate land tax ? At first glance, it seems that the answer lies on the surface: you need to use the basic formula for calculating land tax . However, in practice, things can be a little more complicated.

The land tax formula is similar to the formulas for calculating other taxes: the product of the tax base and the tax rate. But first you need to find out what the tax base is made up of. To do this, let us turn to the provisions of the Tax Code of the Russian Federation (Article 389), which states that the basis for land tax is the cadastral value of the land plot.

It can be found from the following sources:

• land ownership certificates;
• cadastral passport;
• cadastral map, which is publicly available on the official website of Rosreestr.

When calculating land tax based on cadastral value , it is necessary to pay attention to tax rates, which, in turn, depend on the municipality within which the land plot is located. In practice, there are cases when a land plot is located in neighboring areas. In this case, the procedure for calculating and paying land tax will depend on the shares of the plot, as well as the rates established in these regions.

The tax calculation is also influenced by the period of ownership of the land plot. So, for example, if ownership was registered during the year, then in the calculation it is necessary to apply a special coefficient depending on the full months of ownership.

In addition, a coefficient that increases the tax amount may be applied in the case of land use for profit.

NOTE! Business entities not only need to calculate land tax based on cadastral value, but also be sure to submit a corresponding declaration to the tax authorities, and do this no later than February 1 for the past tax period. Declarations for reporting periods do not need to be submitted if local governments do not provide such an option.

How to calculate advance payments?

Payment of land tax by a legal entity

If regional legislation provides for reporting periods, then the enterprise must calculate advance payments throughout the year. To calculate them, the following formula is used:

AP=1/4*KSZU*SZN, where:

AP – advance payment;

KSZU – cadastral value;

SZN – land tax rate.

If there are no reporting periods, then there is no need to calculate advance payments.

Change in cadastral value

The land price according to the cadastre is set for one year. But there are some reasons why the court may change the categorical ownership of land. In this case, the cost according to the cadastre also changes.

If the value according to the cadastre has changed in recent years, then the owner of the land has the right to recalculate the tax and submit declarations with the changes made to them.

You can find out how to calculate land tax by watching the video:

Example of calculation and calculation of tax based on cadastral value

In order to familiarize yourself with the procedure for calculating land tax, let's consider an example of calculation within the Nth municipality. Considering that organizations have already reported for 2020, let’s jump ahead a little and tell you how to calculate land tax for 2020 . It is worth noting that this calculation will not differ from the calculation of land tax in 2020 .

Example

So, we have the following initial data. On June 27, 2015, the organization acquired a plot of land worth 570,000 rubles, located in a municipality in which a rate of 1.5% applies, and there are no various types of tax preferences.

In this situation, the ownership coefficient will be 0.5 (6 full months of ownership / 12 calendar months).

Thus, the tax amount will be 4,275 rubles. (RUB 570,000 × 1.5% × 0.5).

As can be seen from the example, land tax based on cadastral value is calculated quite simply, so it will not cause taxpayers much trouble.