Ministry of Finance: Real Estate Tax Revenues Drop Synchronously in 2025, Land Value Increment Tax Sees Largest Drop in 9 Years

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Taiwan's real estate taxes in 2025 dropped significantly due to housing market control policies. The land value increment tax decreased by 23.5%, marking the largest drop in 9 years, particularly affecting speculative areas like Hsinchu.

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Taiwan's real estate taxes in 2025 dropped significantly due to housing market control policies. The land value increment tax decreased by 23.5%, marking the largest drop in 9 years, particularly affecting speculative areas like Hsinchu.

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Source: https://www.cna.com.tw/news/afe/202604240266.aspx | Date: Date unavailable

Central News Agency (CNA Reporter Lu Yen-tzu, Taipei, 24th) The latest statistics from the Department of Statistics, Ministry of Finance, show that net real estate-related tax revenues in 2025 (114 ROC year) dropped synchronously under the impact of housing market control policies and a high base period. Among them, the land value increment tax decreased by 23.5% year-on-year, marking the largest drop in nearly 9 years. The personal house and land transactions income tax, which reflects the current housing market conditions, fell by 24% year-on-year. However, it still accounts for over 6% of the consolidated income tax, contributing to about 40% of the increase or decrease in consolidated income tax for the current year. The Department of Statistics released a special report today on the "Status of Tax Collections Related to Real Estate Transactions in Recent Years," analyzing the changes in tax revenues for land value increment tax, deed tax, stamp tax, and house and land transactions income tax from 2019 to 2025. Overall, the Department observed that before 2019, the land value increment tax was the largest source of real estate transaction tax revenues, accounting for over 80%. However, with the implementation of the house and land transactions income tax starting in 2016, the increasing number of applicable cases, and the launch of the 2.0 new system in 2021, its proportion surpassed the land value increment tax from 2024. In 2025, it further broke the 50% mark, reaching 52.4%. The Department pointed out that the land value increment tax highly relies on large-value cases, has concentrated tax revenue areas, and correlates strongly with real estate market conditions. In recent years, it previously rose benefiting from Taiwanese businesses returning to invest and large land transactions. However, after 2021, following the cooling of the housing market, central bank interest rate hikes, and a high base period, tax revenues continuously declined. In 2025, due to st

Ministry of Finance: Real Estate Tax Revenues Drop Synchronously in 2025, Land Value Increment Tax Sees Largest Drop in 9 Years

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