Comprehensive Real Estate Tax ₩1.2B Deduction Guide

Middle-aged couple reviewing property tax documents beside a model house and keys

This content applies specifically to South Korea.

If you own one home in Korea but do not live in it, the revised September 2026 government proposal keeps the basic deduction at ₩1.2 billion instead of cutting it to ₩900 million. For a married couple jointly owning one home, it also retains ₩600 million per person, or ₩1.2 billion combined, while the tax burden cap remains 150% rather than rising to 200%. These figures are not final law, so the rules for the relevant tax year still need confirmation.

The confusing part is that some proposed increases were withdrawn while others remain. Separating current law, the original proposal, and the revised proposal can prevent you from estimating a tax bill with the wrong threshold.

 

What the revised proposal preserves

Non-occupying single-home owners keep the current ₩1.2 billion deduction under the revised proposal. Joint owners who are married also avoid the proposed reduction from ₩600 million to ₩400 million per person. This preserves a higher threshold for calculating the taxable amount, although it does not guarantee a particular tax saving.

The proposal to increase the deduction for an owner-occupier with one home from ₩1.2 billion to ₩1.4 billion remains. Directions toward higher taxation of high-value homes and phased increases in the fair market value ratio also remain, so the revision did not cancel the entire reform.

 

How the holding tax deduction and cap work

A ₩1.2 billion deduction is not ₩1.2 billion taken off the tax bill. It is deducted from the officially assessed value before the fair market value ratio and tax rate are applied. Ownership share, actual occupancy, and the final statutory formula can therefore change the result.

The 150% cap is also not a tax rate. In the article’s simplified example, last year’s combined property tax and comprehensive real estate holding tax was ₩1 million and this year’s calculation was ₩2 million. The cap limits payment to ₩1.5 million; under the withdrawn 200% proposal, the full ₩2 million would apply. If the calculated tax is already below the cap, it provides no reduction.

 

A quick classification check

  • Sole owner living in the home: distinguish the current ₩1.2 billion deduction from the proposed ₩1.4 billion amount.
  • Sole owner not living there: use the retained ₩1.2 billion proposal figure, not the withdrawn ₩900 million figure.
  • Married joint owners: check both ownership shares and tax classifications rather than relying only on the ₩1.2 billion combined amount.
  • Anyone applying the cap: compare the calculation with the previous year’s property holding tax amount.

 

What the detailed guide helps verify

The original article on Injoys sets out the current, original, and revised figures by ownership type, explains the cap example, and identifies common calculation mistakes. It also gives the order for checking the proposal, amended legislation, and guidance for the applicable tax year.

Read the full article on Injoys

 

Who needs to confirm the final rule

This applies first to Korean single-home owners classified by actual occupancy, married couples with joint ownership, and taxpayers affected by the property holding tax burden cap. Non-occupancy here means not actually living in the property; it is not the same as being an overseas nonresident for tax purposes.

Today, check the tax year on your notice, then identify whether ownership is sole or joint and whether the owner actually resides in the home. Confirm changes through Ministry of Economy and Finance materials, the final law on the Korean Law Information Center, and National Tax Service guidance before calculating the amount payable.

Read the full article on Injoys

This post was written with assistance and published on a channel run by Injoys (injoys.com). The original article and its sources are at the link above.

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