Residential property taxes will be increased from 2% to 4.8% for those who own multiple homes or are not residing in their property. This is according to the Housing Tax Differential Rate 2.0 plan which the Executive Yuan passed on July 6.
The finance ministry will also be reducing the tax rates for single owner-occupied homes to 1% and rental properties from 1.5% to 2.4% respectively. The adjustments are expected to encourage owner-occupation, the release of homes to the rental market, and reduce vacancies due to unresolved inheritance cases. Homes sold after less than 2 years will also be subject to a higher rate of 3.6% from the previous 2%.
According to finance ministry data, the new adjusted tax rates will apply to roughly 360,000 households nationwide, increasing tax revenue by an estimated NT$2.6 billion. The plan is expected to be implemented in July 2024 and will be officially launched in May 2025.