Importance It is very important not only for the government, but also for the taxpayer to consider the individual solvency when assessing direct and real taxes that have no relation to the source of income. If the appropriate system of property taxation is in place, it will create conditions for tax equity and sustainability of local budgets. Objectives The research determines conceptual approaches to reaching equitable taxation and devises methods to assess the limit of tax exemptions out of the individual’s income as part of property taxation through cadastral value. Methods We used general research methods, i.e. deduction, induction, analysis, synthesis, analogy, observation, description and generalization. While setting up limits of individual property taxation so to consider economic capabilities of the taxpayer, we applied methods of statistical analysis, i.e. index and limitation methods. Results We devised the methods to set up the limit of tax exemption out of the taxpayer’s income as part of individual property taxation through cadatsral value. We probated the methods against data of statistical tax reports on individual property tax received in 28 constituent entities of the Russian Federation, which had adopted the cadastral valuation of property since 2015. Conclusions and Relevance If conceptual approaches to property and land taxation change and the tax base is assessed through cadastral value, it will allow neutralizing the wealth disparity. However, equitable taxation will require to coordinate the tax accrued and economic capabilities of the taxpayer. The findings may prove useful for local authorities to draft regulations on individual property taxes or land tax.
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