When filling out the 3-NDFL declaration, many car owners are faced with the need to indicate income code 10 - one of the most common, but at the same time least understood categories. This code appears on the return when it comes to income from the sale of property, including cars, receipt of insurance payments or rental payments. However, its interpretation depends on the specific situation: whether you sold the car for less or more than 1 million rubles, received compensation under CASCO, or rented out the car.
In 2026, the rules for filling out 3-NDFL with code 10 underwent a number of changes related to updating tax legislation. For example, now when selling a car that has been owned for less than 3 years, the tax base is calculated using new coefficients, and insurance payments for compulsory motor liability insurance and comprehensive insurance may or may not be taxable, depending on the circumstances of the accident. In this article we will look at exactly when code 10 is used, how to correctly indicate it in the declaration and what tax traps await car owners if they are filled out incorrectly.
What is income code 10 in 3-NDFL?
Revenue code 10 in the declaration 3-NDFL means "Income from the sale of property, except securities". For car owners, this means that this code includes:
- 🚗 Sale of a car or truck (including motorcycles, trailers, special equipment).
- 💰 Insurance payments under CASCO if they exceed the amount of damage (for example, in case of total loss of the car).
- 📝 Income from vehicle rental (if you rent out a car).
- 🔄 Car exchange with an additional payment (the additional payment is considered as income).
It is important to understand that code 10 not applicable to income from the sale of securities (there are separate codes for them) or to regular payments, for example, salaries. It is also not used if the car was donated - in this case the code is applied 14 (“Income in kind”).
Since 2023, a clarification has appeared in the tax code: if the car was owned more than 3 years, income from its sale is not taxed (provided that the transaction amount does not exceed 1 million rubles). However, such income must still be indicated in the declaration with code 10 - even if you do not have to pay tax.
When is code 10 required for car owners?
There are three key situations when a car owner will have to deal with code 10 in the declaration:
- Selling a car that has been owned for less than 3 years.
The rule applies here: if the car was your property less than 36 months, income from the sale is taxed at a rate of 13% (for residents of the Russian Federation). An exception is if the transaction amount does not exceed 250,000 rubles (in this case, you don’t have to pay tax, but you still need to file a declaration).
- Insurance payments under CASCO exceeding the amount of damage.
For example, if your car was insured for 1.5 million rubles, and in case of an accident the insurance company paid 1.8 million (due to additional options or indexation), the difference of 300,000 rubles is considered income and is taxed.
- Car rental.
If you rent out a car (for example, through car sharing services or under private contracts), all amounts received must be reflected in the declaration with code 10. In this case, you can reduce the tax base for rental-related expenses (insurance, repairs, fuel and lubricants).
⚠️ Attention: If you sold your car cheaper than bought, but owned it for less than 3 years, you do not need to pay tax. However, it is still necessary to file a declaration - otherwise the tax office may regard this as concealment of income and impose a fine.
If you sold a car for less than 250,000 rubles and owned it for less than 3 years, indicate income code 10 in the declaration, but put 0 in the “tax base” column. This will save you from paying tax, but will comply with the requirements of the law.
How to correctly fill out 3-NDFL with code 10 when selling a car?
Filing an income code 10 return requires attention to detail. Let's look at step-by-step instructions for the most common situation - selling a car.
Step 1. Collecting documents
Before filling out the declaration, prepare:
- 📄 Car purchase and sale agreement (original and copy).
- 💵 Payment documents (receipt for receipt of money, account statement).
- 📋 Certificate from the traffic police about deregistration (if the car was sold under a general power of attorney, notarized confirmation will be required).
- 📊 Documents confirming the costs of purchasing a car (if you plan to reduce the tax base).
Step 2. Filling out the "Income" section
In the "Declaration 2026" program or on the website nalog.gov.ru:
- Select section
Income received in the Russian Federation. - Indicate the source of income (full name of the buyer or name of the organization if the sale was through a dealer).
- In the column
Revenue codeselect 10. - Enter the transaction amount (even if it is less than 250,000 rubles).
- If the car has been owned for more than 3 years, check the box
The property was owned for more than 3 years.
Step 3. Calculation of the tax base
There are two options here:
| Situation | Tax base | Example |
|---|---|---|
| Owned car less than 3 years, selling price more than 250,000 rub. | Transaction amount minus purchase costs (if there are documents) or minus 250,000 rubles. (deduction) | Bought for 800,000 rubles, sold for 900,000 rubles. → tax base: 900,000 – 800,000 = 100,000 rubles. |
| Owned car more than 3 years, transaction amount less than 1 million rubles. | 0 (no tax paid) | Owned it for 4 years, sold it for 950,000 rubles. → tax base: 0 |
| Selling by price below 250,000 rub. (regardless of tenure) | 0 (if there is no evidence of underpricing) | Sold for 200,000 rubles. → tax base: 0 |
⚠️ Attention: If you sold a car for the amount significantly below market (for example, for 100,000 rubles, although similar cars are sold for 500,000 rubles), the tax office can charge additional tax based on cadastral or market value. In this case, strong evidence of the validity of the price will be required (for example, an independent assessment report on the car’s malfunction).
☑️ Documents to confirm expenses when selling a car
Insurance payments and code 10: when to pay tax?
Many car owners do not know that insurance payments for CASCO or OSAGO in some cases also fall under income code 10. Let's figure out when this happens.
CASCO: tax consequences
If your car was insured under CASCO and the insurance company paid compensation, the tax arises in two cases:
- The payment exceeds the amount of damage.
For example, a car was insured for 1.2 million rubles, and in the event of a total loss, the insurance company paid 1.5 million rubles (including additional options or indexation). The difference of 300,000 rubles is considered income and is taxed at a rate of 13%.
- Payment under CASCO if there is no damage.
We are talking about so-called “insurance cases without damage to the car” (for example, payment for theft if the later car is found intact). In this case, the entire payment amount can be recognized as income.
OSAGO: when tax is not paid
With payments under compulsory motor liability insurance the situation is simpler: they not taxed, since they are considered compensation for damage, and not income. However there is an exception:
- 🚨 If the insurance company has paid the amount exceeding actual damage (for example, due to an error in calculations), the difference may be recognized as income.
⚠️ Attention: If you received an insurance payment under CASCO and at the same time sold the damaged car (for example, for spare parts), the amounts from both transactions must be indicated in the declaration with code 10. In this case, the costs of repairing or purchasing a car can be taken into account only once - the tax office does not allow duplication of deductions.
An example of calculating tax for insurance payments
Let's say you bought a car for 1 million rubles, insured it under CASCO for 1.2 million, and a year later the car was stolen. The insurance company paid 1.2 million rubles. Since the damage (1 million) is less than the payment, the difference of 200,000 rubles is taxed: 200,000 × 13% = 26,000 rubles payable.
Car rental: how to indicate income with code 10?
If you rent out a car (for example, through car sharing services or under private contracts), all amounts received must be reflected in the declaration with code 10. However, there are nuances here that allow you to reduce the tax base.
What income should I report?
The declaration must reflect:
- 💵 Monthly rental payments.
- 🚘 Payment for mileage (if it is provided for in the contract).
- 🔧 Compensation for vehicle wear and tear (if allocated separately).
How to reduce tax?
You can reduce the tax base for the following expenses (if you have documents):
- 🛠️ Car repair and maintenance.
- 🚗 Insurance (CASCO, OSAGO).
- ⛽ Fuel (if specified in the rental agreement).
- 📑 Car depreciation (calculated based on the useful life).
📌 Example: During the year you received 300,000 rubles from rent. At the same time, we spent 40,000 rubles on insurance, 60,000 rubles on repairs, and 50,000 rubles on fuel. The tax base will be: 300,000 – (40,000 + 60,000 + 50,000) = 150,000 rubles. Tax: 150,000 × 13% = 19,500 rubles.
⚠️ Attention: If you rent a car through an intermediary (for example, a car sharing service), he can act as a tax agent and withhold personal income tax on his own. In this case, you do not need to fill out a declaration - but it is better to clarify this point in the contract.
Typical mistakes when filling out code 10 in 3-NDFL
Even experienced car owners often make mistakes when indicating income code 10. Here are the most common ones:
- Failure to indicate income from the sale of a car if the amount is less than 250,000 rubles.
Many people think that if there is no need to pay tax, then there is no need to file a return. This is not true: any income from the sale of property must be reflected in 3-NDFL, even if the tax base is zero.
- Understating the value of the car in the contract.
If you indicate in the contract an amount significantly lower than the market amount (for example, 100,000 rubles instead of 500,000), the tax office may charge additional tax based on the cadastral value. In controversial cases, an independent assessment will be required.
- Incorrect tax deduction calculation.
Many people forget that when selling a car, you can reduce your income either by the amount of expenses for its purchase or by a fixed deduction of 250,000 rubles. You can choose only one option - the one that is more profitable.
- Ignoring insurance payments.
CASCO insurance compensations that exceed the amount of damage often go unnoticed. However, the tax office receives data from insurance companies and may charge additional taxes.
📌 Key Takeaway: To avoid claims from the tax authorities, always keep documents confirming the costs of buying and selling a car, as well as insurance policies and accident reports. This will help justify the amounts indicated in the declaration.
If you sold a car for less than 250,000 rubles, but owned it for less than 3 years, still indicate income code 10 in the declaration. In the “tax base” column, put 0 - this will save you from paying tax, but will comply with the law.
FAQ: Frequently asked questions about income code 10 in 3-NDFL
Do I need to file a declaration if I sold the car for less than I bought it for?
Yes, you must submit a declaration, even if you sold the car at a loss. In this case, you do not need to pay tax, but the income must still be reflected with code 10. If you do not file a return, the tax office may fine you for late submission of information (fine - 1,000 rubles).
What if I don’t know the exact date of purchase of the car?
The date of purchase is considered the day of registration of ownership (indicated in the title or registration certificate). If the documents are lost, you can request an extract from the traffic police or restore the vehicle title. Without an exact date, the tax office may not accept your purchase expenses to reduce the tax base.
Is it possible not to pay tax if I sold a car to a relative?
Selling a car to a relative does not exempt you from paying tax if the transaction amount exceeds 250,000 rubles and the car has been owned for less than 3 years. However, the tax office carefully checks such transactions for undervaluation. If the price is significantly lower than the market price, additional tax may be charged based on the cadastral value.
What should I do if I forgot to file a return?
If you missed the deadline for filing your return (by April 30 of the year following the year of income), you need to file it late as soon as possible. The penalty for late filing is 5% of the tax amount for each month of delay (but not less than 1,000 rubles). If the tax has not been paid, additional penalties are assessed.
Do I need to pay tax if I received an insurance payment under compulsory motor liability insurance?
No, payments under compulsory motor liability insurance are not taxed, since they are considered compensation for damage. However, if the insurance company mistakenly paid more than the actual loss, the difference may be treated as income and taxed at 13%.