Question

What does US housing tax include?

Answer 1

Real estate taxes in the United States are governed by federal, state, and municipal tax laws. In addition, there are some special areas that real estate owners must pay such as infrastructure development taxes, environmental fees, residents' association fees... Paying US housing taxes has different costs depending on Depends on each state in the US.

The average tax on home purchases in the US is about 1% - 5%/year. If your house is not rented, it will be subject to income tax. On the contrary, if your house is rented, you must pay a fee of 12% - 20% of the net profit.

Infrastructure fees in the US average from 100 USD - 150 USD/house.
Environmental fees covering street and garbage cleaning activities are about 50 USD - 80 USD/house.
Residential association fees are about 30 USD - 60 USD/house.

Home insurance is also one of the fees that need to be paid. Depending on the value of real estate use, you will pay different fees. If you have real estate worth 400,000 USD, the home insurance premium is about 1000 USD/year - 1200 USD/year.

Home sellers in the US will have to pay transfer procedure costs of 0.5% of the selling price and pay additional income tax (if the house makes a profit). This tax rate ranges from 10% - 18% of net profit depending on the seller's circumstances and property characteristics.

Home buyers in the US do not have to pay transfer sales tax but only have to pay procedure fees to the transfer legal service company. However, if you borrow from a bank to buy a house, you will have to pay a fairly high fee, about 2% - 4% of the total amount you borrow. There will be no tax difference between cash transactions or bank transfers. There is no difference between an American citizen or a foreigner buying real estate.

Answer 2

There are many tax provisions when buying a house in the US, so you need to learn carefully about taxes and fees. At the same time, you can consult experts and lawyers with experience in taxes in the US. Make sure your home receiving process is convenient and quick.

Home buyers in the US will be governed by two tax laws: federal tax and state tax. Federal taxes will apply uniformly throughout the United States. State taxes will depend on each state with its own tax laws. You should also refer to these two types of taxes from real estate experts.

To avoid errors and problems, home buyers in the US need a confirmation of transfer of ownership from the old homeowner to determine the ownership and value of the house.

In addition to housing tax issues in the US, buyers also need to learn and refer to legal processes, procedures, and transfer procedures from experts, lawyers, and real estate brokers to understand the law. of the United States. Whether you are a citizen or a foreigner residing in the US, you must complete all legal procedures according to US law.