Sell a home for NT$15,000,000 and NT$15,000,000 will not arrive in your account. Four amounts come off first: consolidated housing and land income tax (房地合一稅), land value increment tax (土地增值稅), the agent fee, and the land administration agent’s fees and registration charges. Depending on holding period and whether you lived there, the total can run from tens of thousands to three or four million NT dollars. Many owners only discover the real figure on the day the escrow account pays out.
The interactive net-proceeds calculator is on our Chinese page (https://www.fshouse.com.tw/page/about/index.aspx?kind=800). It takes the sale price, original cost and purchase month, applies the 45/35/20/15% table (or the 10% owner-occupier rate), adds estimates for land value increment tax, the agent fee and registration costs, and shows the net figure. This guide explains the same formula in words. Figures follow the Ministry of Finance’s summary of the regime as of August 2026. For the process, see Selling a home in Taiwan: 8 steps.
Which taxes apply when you sell
Three taxes matter. Consolidated housing and land income tax applies to property acquired on or after 1 January 2016. Land value increment tax is charged whenever the land’s assessed value has risen, profit or not. Property acquired before 2016 falls under the old property transaction income tax, filed with the following year’s income tax return. The acquisition date decides which regime applies; see Old vs new capital gains regime.
The largest and most variable is the income tax under version 2.0 of the regime. The taxable gain is the sale price minus acquisition cost, deductible expenses and the land value increment amount already taxed; the rate depends on holding period.
| Holding period | Rate | Typical situation |
|---|---|---|
| 2 years or less | 45% | Quick flips, pre-sale contracts resold soon after completion |
| Over 2 to 5 years | 35% | Recently bought, short to medium hold |
| Over 5 to 10 years | 20% | Where most owner-occupiers trading up land |
| Over 10 years | 15% | Long-term holders |
| Owner-occupied 6 years, three conditions met | NT$4,000,000 exempt, then 10% | See the exemption section below |
Full detail is in Consolidated housing and land income tax.
Our view: The tax most often underestimated is land value increment tax. It is levied on the rise in government-assessed land value, so even if you sell below what you paid and owe no income tax, you can still face a large land tax bill. Before signing a listing, ask the Land Office or your land administration agent (代書), the licensed professional who handles title transfer, for an estimate.
How the net figure is calculated
Net proceeds = sale price − housing and land income tax − land value increment tax − agent fee − land administration and registration fees. Your profit on the deal is that figure minus what you originally paid.
The agent fee is usually the largest non-tax item: the legal cap is 6% for buyer and seller combined, and sellers commonly pay 4%, negotiable. See Agency fees. The seller’s share of registration charges (registration fee, stamp duty, mortgage release) usually falls between NT$10,000 and NT$30,000.
The agent fee plays two roles. For the tax return, the agent fee, land administration fees and receipted renovation costs are deductible expenses that reduce the taxable gain (without receipts the tax office allows 3% of the sale price, capped at NT$300,000). For the net figure, they are cash taken from the proceeds. If you are trading up, the net figure is your next deposit; see Down payment.
The NT$4,000,000 owner-occupier exemption: all three conditions
For a qualifying owner-occupied home, taxable gain up to NT$4,000,000 is exempt and the excess is taxed at only 10%. On a NT$6,000,000 gain, an ordinary sale within 5 years pays NT$2,100,000 (35%); a qualifying owner-occupier pays NT$200,000. Three conditions must all be met:
- Registered and living there for 6 continuous years. You, your spouse or minor children must have household registration (戶籍) at the property and have owned and actually lived in it for 6 continuous years. Moving out and back restarts the clock.
- No renting, business or professional use in the 6 years before sale. Even a few months of short-term letting disqualifies you, and the tax office can find it.
- Once in 6 years. Neither you, your spouse nor minor children have used this exemption in the 6 years before the sale.
Our view: Condition 2 is where owners most often fall. The Central Region National Taxation Bureau has caught owners who registered at the property, worked elsewhere and quietly let it out, then claimed the exemption; the back tax came to nearly NT$1,000,000.
For foreign nationals: the exemption and the 10% rate depend on household registration, which most foreign owners do not have. Plan on the general rate for your holding period, and ask us to check your specific case. See The NT$4 million self-use exemption.
Three legal ways to reduce the bill
Repurchase refund for movers. Sell and buy another owner-occupied home within 2 years, in either order, and you can claim back income tax paid: all of it if the new home costs the same or more, a proportion if less. The new home may not be put to other use or resold within 5 years or the refund is clawed back. Land value increment tax has its own repurchase refund, where the new land’s value must exceed the old land’s value less the tax already paid, with the same 5-year restriction on resale, letting, business use or moving household registration out. See Repurchase tax refund.
Stack the two owner-occupier reliefs. The NT$4,000,000 income tax exemption and the 10% owner-occupier rate for land value increment tax are separate taxes and can be used together. The “once in a lifetime” 10% land tax rate requires the house to be owned by you, your spouse or a lineal relative with household registration there, no letting or business use in the year before sale, and urban land of 300 m² or less (700 m² non-urban). After using it once, the stricter “one house in a lifetime” conditions (6 years of ownership, no other house, and so on) allow further use without limit.
Document your costs. The deed tax, land administration fees and agent fee you paid when buying, and receipted value-adding renovations such as new pipework or built-in cabinetry, all reduce the taxable gain. No receipts means more tax. Inherited property has different cost and holding-period rules; see Selling an inherited property.
Filing: the 30-day deadline
The income tax is filed separately from your annual return. Whether or not you owe tax, you must file within 30 days of the day after transfer registration; late filing carries a surcharge and late payment a further penalty. A zero or negative gain still has to be filed, the trap private sellers most often fall into. Pre-2016 property is instead reported with the following May’s income tax return, and the land portion is exempt because land value increment tax has already been paid. Ask the land administration agent at signing to put the filing on the timetable.
FAQ
Which taxes do I pay?
Housing and land income tax (property acquired from 1 January 2016, at 45/35/20/15%), land value increment tax (generally 20–40% progressive on the rise in assessed land value), or the old property transaction income tax for pre-2016 property.
I made no profit. Do I still pay?
No income tax if the taxable gain is zero or negative, but land value increment tax is charged on assessed land value, not your profit, so it may still apply. You must still file within 30 days.
What are the conditions for the NT$4,000,000 exemption?
Six continuous years of household registration, ownership and residence; no letting or business use in the prior 6 years; no use of the exemption by your household in the prior 6 years. Gain up to NT$4,000,000 is exempt; the rest is taxed at 10%.
How is an inherited home taxed?
The same 45/35/20/15% table, but the holding period includes the deceased’s years, so a lower rate usually applies. Cost is the assessed house and land value at inheritance, not market value.
How does the 10% land tax rate work?
Once in a lifetime, with household registration at the house, no letting or business use in the year before sale, and urban land of 300 m² or less. Later sales can use the stricter “one house in a lifetime” rule without limit.
What rate applies to reselling a pre-sale unit?
Almost always the top two: 45% within 2 years, 35% between 2 and 5 years. The pre-sale holding period runs from the contract date and restarts at completion; the two periods cannot be combined. Estimate the tax before setting a price.
Conclusion
The key number is not the asking price but what remains after tax. Work out the four deductions before you decide on price and listing, especially if the proceeds fund your next purchase. Take the land value increment tax figure from the Land Office’s official estimate before you sign. Contact us and we will run the numbers with you.