Abstract: The reform of the real property tax is the focal, key and difficult point in the reform of present China’s financial and taxation system. The report of the 19th National Congress of the Communist Party of China proposes to“standardize the income distribution order and standardize the wealth accumulation mechanism”, which marks the construction of China’s distribution system entering the new journey of paying equal attention to income flow and wealth stock adjustment. To promote the common prosperity for all in the high quality development requires the modern real property tax as the stock adjustment to play a more extensive functional role. Based on the CFPS data, this paperconducts an empirical analysis to calculate the taxable capacity, tax burden distribution and income scale of the real property tax. The findings show that the taxable capacity and the feasible tax rate in different regions is quite different. From the perspective of tax burden distribution,along with the increase of the deduction of value and the deduction of area, the household real estate tax burden reflects a stronger progressivity. After calculating the income scale of China’s real estate tax under different tax incentives and tax rates and combined with international experiences, the financing capacity of the future real estate tax is relatively limited. Therefore, it is recommended to determine the tax basis and tax rate by province so as to highlight the principle of capacity based taxation, consider the actual situation of different income groups to determine tax exemption and deduction plans, and carefully carry out the top-level design of the reform implementation based on the financing capacity of real estate tax.

Key words: real property tax, taxable capacity, tax burden distribution, income scale