In an effort to help residents improve their living conditions, a new tax rebate policy will be in effect in China from Jan 1, 2026, to Dec 31, 2027. This policy allows homeowners to receive a personal income tax rebate when upgrading their residences. 

If a taxpayer sells their existing home and purchases a new one within the same city within one year, they can apply for a refund of the personal income tax paid during the sale of their previous home.

The policy outlines two criteria for calculating the rebate amount. If the purchase price of the new home is equal to or greater than the sale price of the original home, the full amount of personal income tax paid on the sale will be refunded. If the purchase price is lower, the rebate will be proportional to the ratio of the new home's price to the old home's sale price.

To qualify for the rebate, three conditions must be met:

Location: Both the sold and newly purchased homes must be within the same city, encompassing all municipalities, sub-provincial cities, and prefecture-level cities (including districts, autonomous prefectures, and leagues).

Ownership: The seller of the old home must be the owner or a co-owner of the new home.

Transaction Compliance: The seller must have paid the full personal income tax and completed property transfer for the old home. For second-hand home purchases, deed tax payment and property registration change must be completed. For new properties, the purchase contract must be filed with the housing authority.

Taxpayers must submit a rebate application to the tax authority handling the sale of the old home. Required documents include a valid ID, the original home sale contract, and, depending on the type of new home, either the purchase contract and property certificate for second-hand homes or the housing authority-filed contract for new homes. The tax department will process the application following standard procedures.