Recently, online rumors claimed that the so-called “landlord tax” would be officially implemented on September 15 alongside the “Housing Rental Regulations.”

In reality, tax rules on rental income have always existed, including property tax and personal income tax, with many cities adopting a comprehensive tax rate. However, compliance with tax regulations is relatively rare in practice. Some intermediaries stated that taxes are usually only paid when tenants require reimbursement or have other specific needs, with the tax burden often falling on the tenant.

It was also noted that in response to the so-called “tax increase order,” Chengdu’s tax authority issued a clarification on its official WeChat account, stating that the tax policies for rental properties have been in place for decades and have not been adjusted due to the new regulations. Similarly, Guangxi Television’s financial segment dismissed the trending topic “landlord tax is coming” as unfounded and warned against being misled.

Experts interviewed pointed out that the “Housing Rental Regulations” should not be equated with taxation. While comprehensive registration of rental properties is expected to become a major trend, full implementation may not happen quickly in the coming years.

Is the “Landlord Tax” Coming?

Experts: Registration Should Not Be Equated with Taxation

The rumors about the “landlord tax” primarily stem from the upcoming “Housing Rental Regulations,” set to take effect on September 15.

Article 8 of the regulations states: “Landlords must register rental contracts through the housing rental management platform or other means with the local property management department.” Article 30 mentions that housing authorities should use the platform for contract registration, rental information management, and data monitoring, while establishing information-sharing mechanisms with civil affairs, natural resources, education, market regulation, financial management, public security, taxation, and statistics departments.

Some online discussions suggest that registration and data sharing imply full-scale taxation of landlords.

Yan Yuejin, deputy director of the Shanghai Yiju Research Institute, clarified that while discussions about the “landlord tax” have increased recently, the regulations are aimed at standardizing the rental market and protecting the rights of tenants and landlords—not increasing taxes. The registration requirement is intended to safeguard tenant rights, not impose new taxes.

Yan emphasized that rental income is already subject to taxation as a business activity, independent of the new regulations, and should not be conflated with them.

Many Regions Previously Applied a Comprehensive Tax Rate

Intermediaries: Taxes Are Rarely Paid in Practice, Often Borne by Tenants

Zhang Bo, director of the 58 Anjuke Research Institute, explained that before 2010, China primarily taxed personal rental income under property tax at a 12% rate, alongside business tax and personal income tax. However, enforcement was challenging, leading many landlords to avoid declaring income. In 2010, tax incentives were introduced, reducing personal income tax on rental income to 10%, halving the business tax rate to 1.5%, and setting property tax at 4%, while exempting urban land use tax.

Inquiries with tax authorities in multiple regions revealed that for residential rentals under ¥100,000 per month, property tax and personal income tax are often combined into a comprehensive rate.

For example, Beijing and Shanghai apply a 2.5% comprehensive rate for residential rentals under ¥100,000 per month, while Guangzhou imposes a 4% rate for rents between ¥2,000 and ¥30,000. Real estate agents confirmed that landlords rarely pay taxes unless tenants require invoices for reimbursement, residency permits, or other purposes—with tenants typically covering the tax cost.

Zhang Bo noted that unregulated rental practices lead to market opacity, complicating oversight and tenant rights protection.

What Lies Ahead?

Experts Predict Comprehensive Registration as a Major Trend

What changes will follow the implementation of the “Housing Rental Regulations” on September 15?

Li Yujia suggested that long-term rentals will become more common, with benefits such as public education for children, social welfare, and housing subsidies tied to registration. This is expected to increase registration rates.

Zhang Bo explained that while property transactions require registration and taxation for ownership transfers, rental agreements do not. However, he predicted that full registration will eventually become standard, though progress may be slow in the short term.

Yan Yuejin added that even if registration leads to taxation, current rates are low and unlikely to disrupt the rental market. Registration also protects both tenants and landlords. He proposed that further tax reductions could encourage compliance and promote rental

Housing Rental Regulations

“Housing Rental Regulations” refer to legal frameworks established by governments to govern rental agreements between landlords and tenants, ensuring fair practices, tenant protections, and property standards. These regulations often include rules on rent control, eviction procedures, and maintenance responsibilities, and they vary by region or country. Historically, such laws emerged in response to urbanization and housing shortages, aiming to prevent exploitation and stabilize housing markets.

Chengdu’s tax authority

Chengdu’s tax authority oversees taxation and fiscal matters in Chengdu, the capital of Sichuan Province, playing a key role in local economic governance. Historically, tax administration in Chengdu has evolved alongside China’s economic reforms, modernizing to support the region’s growth as a major commercial and technological hub. Today, it emphasizes digital services and efficiency, reflecting Chengdu’s status as a leading city in China’s western development strategy.

Guangxi Television

Guangxi Television (GXTV) is a regional television station based in Nanning, Guangxi Zhuang Autonomous Region, China, established in 1970. It primarily serves the local population with news, entertainment, and cultural programming, often highlighting Guangxi’s ethnic diversity, particularly the Zhuang culture. Over the years, it has expanded its reach through satellite and digital platforms, promoting regional development and cultural exchange.

Shanghai Yiju Research Institute

The Shanghai Yiju Research Institute is a cultural and academic institution dedicated to the study and preservation of Yiju (宜剧), a traditional Chinese opera form originating from the Jiangnan region. Established to promote this art form, the institute focuses on research, performance, and education, ensuring the continuation of Yiju’s rich heritage. Its work highlights the historical and artistic significance of Yiju within China’s intangible cultural heritage.

58 Anjuke Research Institute

There is limited publicly available information about “58 Anjuke Research Institute,” but it appears to be associated with Anjuke, a Chinese real estate platform. The institute likely conducts research on housing markets, property trends, or related data analytics. If it is part of Anjuke (owned by 58.com), its history may trace back to the company’s expansion into real estate services in China. For precise details, further verification from official sources would be needed.

Beijing

Beijing, the capital of China, is a historic city with over 3,000 years of history, serving as the political and cultural heart of the country for much of the past millennium. It is home to iconic landmarks like the Forbidden City, a grand imperial palace from the Ming and Qing dynasties, and the Great Wall of China, both UNESCO World Heritage Sites. Today, Beijing blends ancient traditions with modernity, hosting global events like the 2008 Olympics while preserving its rich cultural heritage.

Shanghai

Shanghai is a vibrant metropolis and global financial hub in eastern China, known for its blend of modern skyscrapers and historic colonial architecture. Originally a small fishing village, it grew into a major port during the 19th century under foreign concessions and became a center of trade and culture. Today, it is famous for landmarks like the Bund, Yu Garden, and the futuristic Pudong skyline.

Guangzhou

Guangzhou, the capital of Guangdong Province in southern China, is a major port city with over 2,200 years of history, dating back to the Qin Dynasty. Known as a key hub of the Maritime Silk Road, it boasts cultural landmarks like the Chen Clan Ancestral Hall and the iconic Canton Tower. Today, it is a vibrant metropolis renowned for its trade fairs, Cantonese cuisine, and dynamic blend of tradition and modernity.