Three departments: continue to implement the personal income tax policy to support residents in exchanging homes.

On January 14, the Ministry of Finance, the State Administration of Taxation, and the Ministry of Housing and Urban-Rural Development issued a notice on the continuation of the implementation of the personal income tax policy to support residents in purchasing new homes. From January 1, 2026 to December 31, 2027, taxpayers who sell their own homes and purchase a new home within one year of the sale of their current home will be entitled to a tax refund for the personal income tax paid on the sale of their current home. If the amount spent on the new home is greater than or equal to the amount obtained from selling the current home, the full personal income tax paid will be refunded. If the amount spent on the new home is less than the amount obtained from selling the current home, the personal income tax paid will be refunded in proportion to the amount spent on the new home. The sale price of the current home is considered to be the market transaction price of the property being sold. If the new home is a newly built property, the purchase amount is the transaction price specified in the purchase contract signed and recorded by the Ministry of Housing and Urban-Rural Development. If the new home is a second-hand property, the purchase amount is the transaction price of the property. Taxpayers eligible for the preferential policies outlined in this notice must meet the following conditions: 1. The property sold and purchased must be located within the same city. The same city refers to the administrative area of the same municipality, sub-provincial city, prefecture-level city, or district governed by the same municipality, sub-provincial city, prefecture-level city, or prefecture-level league. 2. The taxpayer selling their property and purchasing a new home must be directly related and must be the owner or co-owner of the new property. Taxpayers meeting the conditions for the tax refund policy should provide valid and legal sale and purchase contracts, as well as any other relevant materials requested by the tax authorities, for review and processing of the tax refund. Local housing and urban-rural development departments should establish a mechanism for sharing information with tax authorities to ensure the timely exchange of information on real estate transactions, including signed contracts for property sales (including cancellations), for the purpose of tax verification and refunds. This notice is issued on January 12, 2026 by the Ministry of Finance, the State Administration of Taxation, and the Ministry of Housing and Urban-Rural Development.