Shanghai Announces Personal Residential Property Tax Threshold for the New Year

The taxable housing price threshold for personal property tax in Shanghai for the upcoming year has been announced. According to data released by the Shanghai Municipal Bureau of Statistics, the average selling price of new residential units in 2025 was 46,268 yuan per square meter. Based on this, the applicable tax rate threshold for 2026 is calculated to be 92,536 yuan per square meter. This is the first time since 2018 that this threshold (the price line at 92,536 yuan per square meter) has decreased. The property tax pilot program in Shanghai began as early as 2011, and now it has entered its 16th year. According to Article 5 of the “Interim Measures for the Pilot Collection of Property Tax on Certain Personal Housing in Shanghai,” the applicable tax rate is temporarily set at 0.6%. For taxable housing with a market transaction price per square meter below twice (including twice) the average sale price of new commercial housing in the previous year in this city, the tax rate is temporarily reduced to 0.4%. The average sale price of new commercial housing in the previous year in Shanghai is announced annually by the Municipal Bureau of Statistics. Yan Yuejin, Deputy Director of the E-House Research Institute in Shanghai, pointed out that the taxable housing price threshold is a key indicator determining whether newly purchased housing qualifies for the 0.4% preferential tax rate or the standard 0.6% rate. Its calculation method is twice the average price of new commercial residential units from the previous year. The decline in this figure this year directly reflects changes in the trend of the average price of new commercial residential units in Shanghai in 2025. (The Paper)