Individuals renting out personal housing must declare and pay relevant taxes in accordance with regulations. To help the public clearly understand tax-related matters and tax reduction policies, a unified interpretation of the involved taxes and related preferential policies is provided:

1. VAT Policies

Since Jan 1, 2016, individuals (excluding self-employed individuals) renting out housing have been able to use a simplified tax calculation method, paying VAT at a reduced rate of 1.5 percent instead of the standard 3 percent. For individuals receiving a lump-sum rental payment, the income can be averaged over the lease period to determine the monthly taxable amount.

2. Individual Income Tax Policies

Rental income from personal housing is taxed as "property rental income" at a preferential rate of 10 percent. The taxable income is determined as follows: for single transactions under 4,000 yuan ($592), tax is calculated after deducting an 800-yuan allowance; and for transactions of 4,000 yuan or more, 20 percent of the income is deducted before taxation.

3. Property Tax and Urban Land Use Tax Policies

For individuals renting out housing, a uniform property tax rate of 4 percent is applied, regardless of actual use, while urban land use tax is exempted.

4. Additional VAT-Related Tax Policies

Additional taxes such as the Urban Maintenance and Construction Tax, Education Surcharge, and Local Education Surcharge are calculated based on the actual VAT paid. If VAT is exempted for a period, the corresponding additional taxes are also exempted.

5. Stamp Duty Policies

Lease agreements for renting or leasing personal housing are exempt from stamp duty. 

Notes: From Jan 1, 2023, to Dec 31, 2027, small-scale VAT taxpayers, small and micro enterprises, and self-employed individuals are eligible for a 50 percent reduction on Resource Tax (excluding Water Resource Tax), Urban Maintenance and Construction Tax, Property Tax, Urban Land Use Tax, Stamp Duty (excluding Securities Transaction Stamp Duty), Farmland Occupation Tax, Education Surcharge, and Local Education Surcharge.