Tax Refund for Real Estate Purchase: Accountant's Guide

Every Russian who works officially has the right to get back part of the personal income tax (PIT) paid on large purchases. For example, if an apartment was bought during the year. The state returns part of the expenses incurred, but only if a number of conditions are met. Accountant Ekaterina Drozdova explained all the nuances of this process.

What is a tax deduction and who can get it?

A tax deduction is a refund of part of the tax that your employer withheld from your salary and remitted to the budget during the year.

— Tax deductions for personal income tax are a real opportunity to get money back from the state. The main condition is to work officially and be a resident of the Russian Federation. If there is no official job, then there is no deduction, — explains Ekaterina Drozdova.

There are many deductions, and they are divided into property, social, standard, and investment. The largest and most popular is the property deduction related to buying a home. It allows you to get back large sums from the purchase and from paid mortgage interest.

— The taxpayer«s income (from an employer, from the sale of other property) can affect the amount of tax refunded in the current year. Previously, the formula was extremely simple: multiply the deduction amount by the standard 13% and get 260,000 rubles ($2,900) for the purchase and 390,000 rubles ($4,300) for interest. But since a progressive tax scale was introduced in 2025, the refund amount directly depends on the total income accumulated over the year. If your salary income exceeds 2.4 million rubles ($26,700), then the tax rate is 13%, and everything above that is 15%. Income over 5 million rubles ($55,600) is at 18% and so on up to 22%. Income from the sale of property is taxed at 13% on the first 2.4 million rubles ($26,700) and at 15% on the excess, — clarifies Ekaterina.

You can file a declaration for the previous three years, i.e., in 2026 for 2023, 2024, and 2025.

What is needed for a deduction from the purchase of housing

This type of tax deduction applies to the purchase of an apartment, house, land plot, including with a mortgage. It allows you to get back tax exactly at the rates you paid. The base rate is 13%. In this case, the deduction amount from the purchase is 2 million rubles ($22,200), meaning you get 260,000 rubles ($2,900) back. Additionally, you can claim a deduction on mortgage interest — up to 3 million rubles ($33,300) (you get up to 390,000 rubles ($4,300) back). The total maximum refund amount is 650,000 rubles ($7,200). However, if your income is more than 2.4 million rubles ($26,700) per year and falls under the progressive scale, the final tax refund from the state increases.

But there are important nuances. First, the deduction from the purchase is given once in a lifetime, but it can be distributed across several properties. And the deduction on interest is only for one property and also once. Therefore, if you are planning an expensive purchase, it is worth calculating in advance what to claim and what to leave for the future.

— If your income for the year was not enough, the deduction is carried over to subsequent years. You can file declarations and claim the deduction year after year until the entire balance of the deduction is used up. The deduction from the purchase (2 million rubles / $22,200) is provided once in a lifetime, but you can apply it to several properties, while the deduction on mortgage interest is provided once in a lifetime for one property, — warns Ekaterina.

For example, a person bought an apartment with a mortgage for 5 million rubles ($55,600) and will pay 1 million rubles ($11,100) in interest. By claiming the property deduction for the purchase and the mortgage on this property, he will use up his chance to get the maximum deduction. The specialist advises weighing the pros and cons if a more expensive mortgage purchase is anticipated. In that case, you can claim the deduction on the purchase of the apartment and save the interest deduction for another property.

To confirm expenses on buying a home, a package of documents is required. This includes a contract of sale for the apartment or a shared construction participation agreement (DDU), an acceptance certificate (for a new building) or an extract from the Unified State Register of Real Estate (USRRE) for a secondary market property, a document confirming payment (a bank payment order or a note in the contract that the seller received the money in a certain amount, if payment was made in cash — an equivalent of a receipt).

— To confirm mortgage interest, you need certificates from the bank about the interest paid for the year; you get a certificate every year until the mortgage is paid off. If payment documents are lost, there is a chance to restore them. If it was a payment order from a bank, you need to contact the bank; they keep records and will issue a duplicate. If you paid in cash and lost the receipt, you can try to contact the seller. But of course, it is better not to lose such documents, — advises the accountant.

If the apartment is registered as shared ownership, the deduction is distributed proportionally to the shares. But if the ownership is joint, spouses can choose any proportion, up to 100% for one of them.

— It is enough to submit an application to the tax office on the distribution of shares between spouses, so it is written: husband — 100%, wife — 0, or as desired. You need to see who benefits more from claiming the deduction, — explains Ekaterina.

If the apartment is registered with allocation of shares to minor children, parents can use them in their deduction, while the children will not lose the right to a refund in the future.

Separately, it is worth mentioning maternity capital. Its amount is deducted from the cost of the apartment when calculating the deduction.

— For example, the apartment costs 4 million rubles ($44,400), bought by two parents in joint ownership, paid partially with maternity capital. Then the deduction available for it is 4 million rubles minus 833,000 rubles ($9,300) = 3 million 167 thousand rubles ($35,200), this amount can be divided between the spouses, — provides an example Ekaterina.

However, not all real estate gives the right to a tax deduction. What matters is not the year, but the type of property and the seller. As the expert explains, you can get a deduction for a room, a share in an apartment or room, but not for apartments (commercial housing).

Also, you will not get a refund when buying real estate from close relatives (spouses, parents, children, siblings) due to the risk of fictitious transactions or price inflation. However, you can buy from an uncle or grandmother and apply for a tax deduction.

Many mistakenly believe that you can apply for a deduction for a new building immediately after signing a DDU. In fact, you need to wait for the signing of the apartment acceptance certificate.

— The apartment must be completed and handed over to the buyer. One of the supporting documents for the deduction for a new building is the acceptance certificate. Therefore, you need to be careful with the date of the certificate. If you received the apartment and signed the certificate in December 2025, then already in 2026 you have the right to claim the deduction (file a declaration for 2025). If you delayed and signed the certificate in January 2026, then the right to the deduction is postponed until 2027. By the way, the deduction on interest also cannot be claimed until the acceptance certificate is obtained. We pay the bank, we keep the deduction in mind, — explains Ekaterina.

How to get the refund

There are two options for receiving the payment. The first is a one-time refund to your card. In this case, you file a declaration with the Federal Tax Service (FTS), the tax office checks it and transfers the money. This is the most common method.

You can file the declaration in person on paper, by mail with copies of documents, or electronically through your personal taxpayer account — the latter is the fastest and most convenient.

The second method is to receive the deduction monthly through your employer. Then the employer does not withhold PIT from your salary until the deduction amount is exhausted. This is beneficial for those who want to see an increase in salary every month rather than waiting for a one-time payment.

— You first submit an application to the tax office, then wait for the tax office to check the application and send a special notice directly to the employer, and write an application at the employer. When receiving your salary, the employer will reduce the amount of PIT withheld. As long as the approved deduction is not exhausted, you can receive money without PIT withholding, thus the net salary will be higher, — describes Ekaterina.

The expert notes that, as a rule, deductions for children or GTO (Ready for Labor and Defense) are usually provided by employers without problems, while property deductions are asked to be filed independently. But by law, if you bring a notice from the tax office, they cannot refuse. It is just that in this case you add work to the accountant.