IDEAS home Printed from https://ideas.repec.org/a/spr/snbeco/v5y2025i6d10.1007_s43546-025-00824-9.html
   My bibliography  Save this article

Real estate tax reform in China: taxation scheme and effect assessment

Author

Listed:
  • Li Qi

    (HeBei University)

  • Chen Shuyun

    (Central China Normal University)

  • Gao Zhenjuan

    (HeBei University)

Abstract

This article conducts a study on Chinese real estate tax levy mechanism characterized by “property tax” attributes on the foundation of “benefit tax” properties. Utilizing China Household Finance Survey data from 2019, the article estimates the tax-paying ability of various provinces under workable tax rates and devises five distinct tax relief schemes. By comparing the distribution of tax burdens, it finds that the “per capita value exemption” scheme yields the most robust progressivity and the most favorable outcome in terms of income adjustment. Building on the “per capita value exemption” scheme, three tax redistribution schemes are fashioned. The investigation into the repercussions of the real estate tax on overall family welfare through the Atkinson social welfare function reveals that the “per capita value exemption” scheme, combining with the redistribution scheme of “subsidies for families with minor children” is currently the most reasonable combination in the real estate tax collection plan.

Suggested Citation

  • Li Qi & Chen Shuyun & Gao Zhenjuan, 2025. "Real estate tax reform in China: taxation scheme and effect assessment," SN Business & Economics, Springer, vol. 5(6), pages 1-20, June.
    • Handle: RePEc:spr:snbeco:v:5:y:2025:i:6:d:10.1007_s43546-025-00824-9
    DOI: 10.1007/s43546-025-00824-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43546-025-00824-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s43546-025-00824-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Real estate tax; Taxation scheme; Effect assessment; Atkinson social welfare function;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:snbeco:v:5:y:2025:i:6:d:10.1007_s43546-025-00824-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.