Tax Incentives for Retirees in 2022

2024 Author: James Gerald | [email protected]. Last modified: 2023-12-17 14:00

Pensioners pay taxes to the state on their income. They pay for the opportunity to use a land plot, to own a vehicle. Real estate rights are also tax deductible. However, there are conditions when a pensioner is exempt from contributions. What tax breaks are available for retirees today and will there be changes in 2022?

What taxes do retirees pay

As soon as a Russian citizen has formalized the right to own property, he must pay tax in favor of the state. Even minor children pay the tax if their parents registered real estate on them, although they have no income. Pensioners also pay taxes due to them on the amount of the pension benefit.

Tax is a compulsory contribution from individuals levied in order to ensure the financial activities of the state and municipalities. Taxes are divided into three categories:

• federal;
• regional;
• local.

At the state level, tax contributions for pensioners provide for exemptions, they apply to certain groups of citizens. The financial situation of pensioners living in their territory is taken into account in specific cases. In some regions, taxes on transport have been abolished altogether, and the amount of payments for the use of land plots has been significantly reduced.

Mandatory taxes that retirees are required to pay:

• property tax;
• to the ground;
• transport tax;
• from the income received (winning the lottery, etc.).

Working pensioners give 13% of their wages to the state. Pensioners who receive government benefits but are engaged in income-generating activities also pay contributions.

What taxes do pensioners not pay

Russian citizens living on state benefits (pensions) do not pay interest on it to the state. Pension benefits are not included in the list of taxable income.

Pensioners, working and non-working, do not pay land contributions if the territory of the site does not exceed six acres. In addition, they are exempt from tax if they own one residential property and one non-residential property (garage, parking space).

Citizens with pensioner status do not pay taxes on social benefits if payments are made officially from the state budget.

Pensioners do not pay interest on income if it is a gift from public, labor or private organizations. The cost of gifts received in a calendar year should not exceed 4 thousand rubles, otherwise 13% of the cost of the presentation will have to be paid into the state budget.

The cost of vouchers for sanatorium treatment and the amount of material assistance allocated by the former employer are not taxed. Pensioners who spend all summer at their summer cottages are exempted from property tax at the federal level. This benefit is established and valid throughout the country.

Regional and Federal Tax Credits for Retirees

Small ethnic groups living in the Far North have the right to full exemption from land tax. Condition: the land must not be used for business purposes. Land plots should be preserved in their natural form and used for the development of folk crafts. This benefit is spelled out at the federal level.

At the federal level, owners of vehicles equipped for the movement of disabled people are exempted from paying transport fees. The vehicles allocated by the social security authorities are not taxed. If the power of the car does not exceed 100 hp. with., then the owner is also exempt from payments.

Regions independently set transport tax discounts. The size of the benefit for pensioners can range from 20 to 100%. In St. Petersburg, there are pensioners who own vehicles of domestic production, the capacity of which is up to 150 liters. with., do not pay contributions to the state treasury.

Pensioners who own vehicles in the Voronezh Region also have benefits. In Moscow, disabled pensioners of I-II groups do not pay transport tax if the power of the car is not more than 200 liters. with.

Tax incentives for retirees in 2022

The privilege provided by the state for people who have received the status of a pensioner is the opportunity to issue a property tax deduction. The funds paid by the pensioner for the purchase of the property will be partially returned in the form of a cashless transfer.

Working pensioners have the right to apply for a tax benefit for the next year after purchasing the premises. Non-working people have the right to submit an application to the tax office within three years from the date of registration of property rights. Pensioners will be partially refunded the amount paid for the purchase of a house, apartment, spent on the construction of the premises.

The Russian government has raised the retirement age for men and women. Consequently, the exit to a well-deserved rest and the possibility of receiving state benefits for many citizens were postponed for several years. Therefore, the concept of "pre-retirement age" arose.

The category of citizens who have 5 years left before retirement is called pre-retirement. This status is granted to men who have reached the age of 60 and women 55 years old. At the state level, this category also needs protection and benefits, like pensioners who have already received a certificate. Therefore, benefits, including tax benefits, also apply to people of pre-retirement age.

Transport tax credit

The transport tax for the holders of especially honorable awards, for example, the Hero of Socialist Labor, has been completely abolished.

Pensioners, whose car has an engine power of up to 100 hp, can reduce the tax on transport. with. You can get this benefit only for one car. At the same time, the regions themselves set the size of the discount on transport tax - from 20 to 100%.

Land tax credit for retirees

For pensioners, the land tax on a land plot, the area of which does not exceed 6 acres, has been completely abolished. If the land area is larger, then a deduction is made in the indicated amount.

The allotment may be owned by a person of pre-retirement age and be registered with Rosreestr. May be listed in use on the basis of perpetual ownership or inheritance rights.

Interesting! Land tax in 2022 for legal entities and payment deadlines

Property tax credit

Property tax exemption for pensioners is possible only in relation to one property. It must have a residential purpose and an area of no more than 50 m². The privilege applies to such premises as individual buildings, utility buildings, a garage, a parking lot, an apartment, a residential building.

Property types:

• apartment or room;
• private house;
• garage or place for a car;
• specially equipped room (gallery, atelier, studio);
• residential apartment (room, house), converted into a museum, library, gallery - a real estate object for pensioners professionally engaged in creative work is taken into account;
• utility building or construction up to 50 m²;
• a piece of land provided for running a personal subsidiary farm, building a summer cottage or a private house, gardening or horticulture.

Pensioners have the right not to pay tax on only one property object.

Tax Incentives for Retirees in 2022

The object for which the discount will be provided is determined on the basis of an application. A citizen of retirement age must independently submit an application to the local tax office if he expects to be exempt from payment from the state.

If the pensioner does not submit the documents, the service specialists will independently calculate the amount of tax payable. The largest size of the property is taken into account, the largest area of the land plot. Property holdings in the singular will not be taxed.

Tax officials will take all information about ownership of movable and immovable property from Rosreestr.

Citizens independently submit documents through a multifunctional center, online through the State Services service or in person to the tax authority.

List of documents:

• statement;
• pensioner's ID;
• notification of the selected objects of taxation for the application of the privilege (if desired);
• documents confirming the ownership of the property or vehicle selected for the application of the privilege (if necessary);
• notarized power of attorney (when contacting through a representative).

An application for benefits is reviewed by the tax authority within 30 days.

Outcomes

The state does not exempt pensioners from paying taxes, but provides preferences in the form of tax breaks. In 2022, working retirees will pay 13% in 2021 payroll tax. All citizens with pensioner status will give interest to the state if they officially own cars, plots of land with an area of more than 600 m², a second living quarters and a second garage.