Are there land tax benefits for pensioners?

How to get benefits?

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The legislation of the Russian Federation provides not only responsibilities on the part of citizens, such as paying taxes, but also a large number of rights, including benefits, subsidies and special payments. However, information about them is often not communicated to citizens to the required extent. Out of ignorance, we simply do not take advantage of the benefits to which we are legally entitled. This problem especially concerns pensioners.

Let's try to figure it out:

What is land tax? Do pensioners pay land tax? What benefits can they expect? How to get benefits?

Who gets benefits?

According to Art. 395 of the Tax Code of the Russian Federation, various state organizations, shipbuilding companies and citizens belonging to peoples with low numbers from the Far East, northern regions and Siberia may not pay taxes on land.

As can be seen from the above, in 2021, at the federal level, pensioners are not entitled to land tax privileges. They can only be provided by local authorities, based on the economic state of the budget.

Let's look at a detailed example:

According to the Decision of the Voronezh City Duma No. 162, disabled people of all groups can benefit from not paying land tax. To do this, they need to submit documents to the Federal Tax Service before February 1 of the year following the year of payment of the tax.

What is land tax?

Chapter 37 of the Tax Code of the Russian Federation states that land tax is a type of local taxes, the proceeds from which go to the local budget.

Payers of this tax are persons who own land plots in inheritable possession for life, as well as those who use them indefinitely.

*Citizens who rent land or use it free of charge (i.e. for a certain period), as well as those who have benefits, may not pay tax.

Who is eligible for the benefit?

1. According to Article 395 of the Tax Code of the Russian Federation, individuals who are representatives of indigenous peoples of the North, Siberia and the Far East are completely exempt from tax in relation to land plots that are used to preserve and develop their traditional way of life, farming and crafts.
2. At the level of federal legislation, the following categories of citizens are also entitled to benefits:

• Heroes of the USSR and the Russian Federation, full holders of the Order of Glory.
• Disabled people of groups 1 and 2 (if it was assigned before January 1, 2004).
• Disabled since childhood.
• Veterans and disabled people of the Second World War. Veterans and disabled combatants.
• Citizens exposed to radiation (Chernobyl, Semipalatinsk and due to other accidents established by law).
• Citizens directly involved in nuclear tests and in the elimination of nuclear accidents.
• Citizens who suffered from radiation sickness, as well as those who became disabled as a result of nuclear tests and exercises.

*The benefit consists of reducing the tax base (i.e. the amount from which the established tax rate is taken) by 10,000 rubles.

1. Since 2021, the State Duma has adopted a law on the inclusion of pensioners among those entitled to benefits.

• Pensioners who own a plot of 6 acres or less are completely exempt from paying land tax!

This applies to pensioners receiving a pension in the manner established by the legislation of the Russian Federation, for all men who have reached the age of 60, as well as women who have reached the age of 55.

• When owning a land plot larger than 6 acres or several plots, a benefit is also provided: a tax deduction will be made from the land tax, but not by 10 thousand rubles, as for other preferential categories of citizens, but by the cadastral value of the plot in the amount of 6 acres .

*Land tax benefits are provided only for one plot of land at the taxpayer’s choice.

In addition, legal acts and laws of municipalities may establish their own tax benefits for certain categories of citizens. In some cases, this is even a complete exemption from land tax. Each local government body independently determines whether the exemption for pensioners will apply on its territory or not, and also determines the procedure for its application. Therefore, you need to seek clarification of this issue from the local administration, tax office, or study the laws of the area where your site is located.

Tax deduction

An alternative option, instead of tax exemption for pensioners, is to issue a deduction in accordance with Art. 391 of the Tax Code of the Russian Federation and Federal Law No. 436 dated December 28, 2017. Thanks to it, the tax base of six hundred square meters is reduced by the value according to the cadastral valuation.

ATTENTION !!! So, if the land area is less than six acres, the tax will not be charged. If it is larger than the established size, the remaining part of the area is subject to taxation.

To apply for a preference, pensioners must contact the local branch of the Federal Tax Service with a notification of the preferential plot and title documents for it. If the deduction is issued for 2021, you need to visit the Tax Service before 07/01/2021.

Reasons for increase

The prerequisite for calculating state age benefits, its terms and amount are established by Law No. 400 adopted on December 23, 2013. If a pensioner exceeds the threshold of 80 years, the fixed part of the insurance payment is 200%. From January 2021, the amount is equal to 10,668.38 rubles. But for citizens who live or worked in areas with difficult climatic conditions, an additional increasing multiplier is applied:

• 0.5 for persons who worked in the Arctic Circle and in the Arctic Ocean for more than 15 years;
• 0.3 for citizens who worked in conditions equivalent to the Far North for 20 years or more.

When a citizen has experience in both areas, they choose the one that will bring a larger surcharge.

If an elderly 80-year-old citizen has dependents who are disabled, additional payments are established for the pension. For each, 1/3 of the fixed amount established by the state in the billing period is added. The number of dependents of one pensioner cannot exceed 3 people. In this case, the amount for all three disabled dependents will be 5,334.19 rubles.

Types of tax incentives for land

Legislative acts of the regions establish two types of tax privileges on land for pensioners:

Let's look at a few examples of land benefits for pensioners in the regions:

• Citizens living in Omsk who receive social benefits for old age and do not have able-bodied family members can reduce the tax base by 40,000 rubles.
• Residents of Pushkino (Moscow region) can receive a 50% discount if their pensions do not exceed two subsistence minimums.
• Pensioners registered in Lipetsk can reduce the tax base to 300,000 rubles.
• Residents of St. Petersburg who are on old-age pensions do not pay land tax if the area of ​​the plot does not exceed 0.25 hectares.

IMPORTANT !!! You can take advantage of tax privileges in the region only if you are registered in it. If a citizen is registered in one subject, but wants to receive benefits for a plot in another, his application will be denied.

How is the tax amount calculated if a beneficiary is given a discount, using a specific example:

Olkhovskaya R.E. lives in Pushkino. The size of her pension is one subsistence minimum. She owns a plot of land. Without the benefit, the tax amount will be 2,500 rubles. Thanks to local law, she can take advantage of a 50% discount, and then instead of 2,500 she will have to pay only 1,250 rubles.

Relationship with income

When it is necessary to calculate a property tax deduction, the amount of income of citizens does not play a significant role. This rule is the same for any type of tax deduction, be it property, social or professional. The main thing is the relevant documents that will confirm the right to benefits from the state.

Referring to Russian legislation, pensions provided to Russian citizens, including social and labor, are not subject to taxation. Social supplements to pensions (at the federal level, regulated by the constituent entities of the Russian Federation) are also not subject to taxes. However, without taxable income, the right to a tax deduction is lost and can only be restored under certain conditions.

The right to a 13% tax deduction after purchasing an apartment by a pensioner, including on credit, gives:

• Wage;
• Income from the sale of real estate or a vehicle that was in the seller’s possession for less than three years;
• Gift deed to a pensioner for real estate or vehicles;
• Income from leased real estate (the lease must be formalized by an agreement);
• Received a valuable prize, cash winnings in competitions and games.

How to apply for a benefit for a land plot?

If local authorities have provided tax privileges for land, you can take advantage of them by submitting a notification about the selected plot to the Federal Tax Service.

The whole procedure looks like this:

1. Submission of notice and related documents. This can be done in person, through a legal representative (a notarized power of attorney is required) or through Russian Post by registered mail with return receipt requested.
2. Waiting for a decision. Registration of documents takes place within one day, after which they are submitted for review to the relevant department. The final response to the applicant is received within 30 days from the date of application.

IMPORTANT !!! If a citizen has submitted unreadable documents, does not have grounds for applying for benefits, or does not have enough certificates, his application will be denied.

Transport tax - can it be refunded?

Every citizen of retirement age has the right to apply for a number of benefits for paying transport tax. But if a pensioner has not exercised his rights in this area, then he has the opportunity to receive a refund of part of the tax funds for the last three years.

In order for a pensioner to be able to return part of the transport tax, the following must be done:

1. Contact the tax office.
2. Submit an application indicating the amount of tax that was paid in excess of the norm. You must submit your application in person or through a representative within 3 days after payment. The form should include the following information:
   full name of the tax office;
3. Full name of the pensioner;
4. passport details;
5. registration address;
6. contact number;
7. the essence of the statement;
8. a list of documents to be presented with the form;
9. date and signature.
10. Provide your latest tax receipt;
11. Prepare a basic list of documents, such as: pension certificate; PTS (passport) for transport; car registration certificate.

Within 10 days

The tax authorities decide whether to return the funds to the applicant or not. The final decision must be received by mail within 5 days after the specified deadline.

How to fill out a notification?

The Notice of Preference must be completed in blue ink and in legible handwriting.

It must contain the following information:

• INN, full name, passport details of the payer, address of the land location.
• Cadastral number of the property.
• Date of application and signature.

If it is planned to issue a tax deduction for a land plot, the notification form approved by order of the Federal Tax Service No. ММВ-7-21/167 is used. It contains similar information listed above.

It is important to take into account that the deadline for transferring land tax ends on November 31 of the year following the year of the reporting period, therefore, in order to avoid penalties, it is recommended to submit documents for registration of benefits to the Federal Tax Service as early as possible.

Comments: 3

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Author of the article: Klavdiya Treskova

Consultant, author Popovich Anna

Financial author Olga Pikhotskaya

1. Alexey
   04/18/2021 at 07:40 pm Thank you, very useful article.
   Reply ↓
2. Evgeniya
   03/29/2021 at 16:36

   Since October last year, I have received a heating subsidy of 1,148 rubles. In January of this year I turned 80 years old. The pension increased and became 23,892 rubles. The subsidy continues to arrive. Perhaps I am not entitled to it?

   Reply ↓
   Anna Popovich
   03.29.2021 at 17:36

   Dear Evgeniya, the benefit period is six months. After this period has expired, you will need to contact the social security department again and then the employee will calculate the possibility of further receiving a subsidy and refuse to retain you for the subsidy.

   Reply ↓