How is tax calculated for a 1.5M SAR first-time home purchase?

The first 1M SAR is exempt (50k SAR state-paid), leaving only the remaining 500k SAR taxed at 5% (25,000 SAR net tax payable instead of 75,000 SAR).

Saudi ArabiaUpdated for 2026Real Estate

Saudi First Home RETT Tax Exemption Calculator 2026

Calculate statutory Real Estate Transaction Tax (RETT 5%) state relief for first-time Saudi home buyers up to 1,000,000 SAR (50,000 SAR savings) and brokerage costs.

First Home VAT Refund Real Estate & Property Value Added Tax (VAT)Finance & Investment

Calculated Result

Net Payable Real Estate Transaction Tax (RETT)

10,000SAR

Calculator Inputs

Agreed Property Purchase Price

SAR

Quick select:

Buyer is Saudi Citizen Buying First Primary Home

Brokerage Commission Fee (Max 2.5%)2.5 %

0 %2.5 %

Net Payable Real Estate Transaction Tax (RETT)

10,000SAR

State-Funded Tax Exemption Relief

50,000 SAR

Total Brokerage Fee (Incl VAT)

34,500 SAR

Gross 5% RETT Prior to Relief

60,000 SAR

Total Outlay (Property + Costs)

1,244,500 SAR

Congratulations! Your property is 100% exempt from RETT as it falls entirely within the 1M SAR state subsidy cap.

The maximum 50,000 SAR relief was applied, taxing only the excess balance above 1M SAR at 5%.

Tax Breakdown & Relief Savings

Royal First Home Exemption

50,000 SAR(53%)

Net RETT Payable to ZATCA

10,000 SAR(11%)

Brokerage & 15% VAT

34,500 SAR(37%)

Calculated strictly pursuant to Royal Decree A/84 and official ZATCA Real Estate Transaction Tax (RETT) statutory rules.

This calculator is a mathematical model for general financial estimation, planning, and educational guidance. Results depend on your inputs and standard formulas, and do not constitute binding financial, tax, or investment advice. Always consult a qualified professional before making financial decisions.

Official Statute: الأمر الملكي أ/84 ولائحة ضريبة التصرفات العقارية (RETT) ومبادرة تحمل الدولة لضريبة المسكن الأول حتى مليون ريالLast Verified: 2026-09-04

Calculation Methodology

The Saudi state subsidizes RETT (5%) on a citizen's first primary home up to 1,000,000 SAR property value (max 50,000 SAR relief), taxing only excess amounts above 1M SAR at 5%.

Frequently Asked Questions

The state absorbs up to 50,000 SAR in Real Estate Transaction Tax (5% of up to 1,000,000 SAR of the purchase price).

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Saudi Arabia

Saudi First Home RETT Tax Exemption Calculator 2026

Calculator Inputs

Tax Breakdown & Relief Savings

Calculation Methodology

Frequently Asked Questions

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