⚠️ This calculator is not law yet

This tool previews the capital gains tax reform direction announced by Korea's Ministry of Economy and Finance on August 3, 2026 (the "2026 Tax Reform Proposal"). It still needs to go through pre-announcement, cabinet approval, submission to and passage by the National Assembly, and promulgation — the details may change or the proposal may be scrapped entirely during legislative review.

Pre-announcement
Cabinet meeting
National Assembly
Enactment

Capital Gains Tax Reform Preview (2026 Proposal — Not Yet Law)

This calculator covers capital gains tax on home sales for single- and multi-home owners only. For acquisition tax, property tax, and comprehensive real estate tax, use the existing Acquisition Tax Calculator and Property Holding Tax Calculator.

💡 Want to calculate under current law instead, including acquisition price and expenses? → Capital Gains Tax Calculator

Select Year (Reform Implementation Stage) 2026
Current law (proposal not yet applied) 2027
Basic deduction expanded, surcharge relief begins (long-term deduction still current law) 2028
Long-term deduction stage 1 + new deduction cap 2029
Long-term deduction final (residency only) + surcharge relief ends

Sale Price (KRW) The price you sold for. Used to determine the 1-home exemption (≤₩1.2B) and the expanded long-residence basic deduction (≤₩3B). e.g. 2000000000 Capital Gain (KRW) Sale price minus acquisition cost, necessary expenses, etc. — calculate this yourself and enter it directly. e.g. 500000000 Number of Homes Located in a regulated area (affects multi-home surcharge) Was in a regulated area when acquired (adds a 2-year residency requirement for the 1-home exemption) Holding Period (years) Used for the long-term deduction (long-residence income deduction) and surcharge eligibility. Residency Period (years) Used for the long-term residence deduction and the expanded basic deduction (10+ years).

Breakdown for Selected Year
Taxable Gain - -	-
Long-Term Deduction = min(taxable gain × long-term deduction rate, deduction cap) -	-
Basic Deduction - -	-
Tax Base = max(0, taxable gain − long-term deduction − basic deduction) -	-
Calculated Tax - -	-
Local Income Tax (10% of calculated tax) -	-
Total = calculated tax + local income tax -	-

Year-by-Year Comparison (same inputs)

Year	2026	2027	2028	2029
Long-term deduction rate	-	-	-	-
Basic deduction	-	-	-	-
Total tax	-	-	-	-

Limitations of this calculator

The deduction cap (₩2B in 2028, ₩1B in 2029) reflects only the per-property cap — the separate per-person annual cap that applies when you sell multiple properties in the same year is not reflected, since we don't have information about your other sales.
Regional second-home relief, win-win lease special treatment, temporary 2-home exemptions, and regulated-area rental-apartment surcharge exemptions are not reflected — if you qualify for any of these, your actual tax may be lower than shown here.
Acquisition cost and necessary-expense calculations are not handled — calculate your capital gain yourself and enter it directly.
The 1-home exemption is judged on the 2-year holding requirement only — if the home was in a regulated area when you acquired it, a 2-year residency requirement also applies, which this calculator can't check since it doesn't ask about the area designation at acquisition time.
Exceptions that exclude a home from the house count (temporary 2-home, inheritance, caring for elderly parents, etc.) are not reflected — if one applies to you, select "1 home" directly.

Key rules that ARE reflected (for reference)

Homes subject to the regulated-area multi-home surcharge have the long-term deduction fully excluded (Income Tax Act §95②). This exclusion continues during the 2027/2028 temporary surcharge relief, because the proposal only lowers the rate — the surcharge designation itself remains.
A flat 70% rate applies under 1 year of holding, and 60% from 1 to under 2 years. If the home is also surcharge-eligible, tax is the greater of (progressive + surcharge) vs. the short-holding flat rate (Income Tax Act §104⑤).
The temporary surcharge relief (2027/2028) requires 2+ years of holding — under 2 years, the full current surcharge (+20%p / +30%p) applies with no relief.
The 2026 figures assume a sale on or after May 10, 2026. Sales between May 10, 2022 and May 9, 2026 fell under a temporary surcharge suspension (with the long-term deduction also allowed), so tax was far lower — running such a sale through this calculator will substantially overstate it.

This result is a simulation based on a government proposal that has not yet been enacted, and may differ from the actual outcome. Always verify whether the bill passed the National Assembly and check its final text.

Sources (Government Proposal — Not Statute)

The base income tax rate table (6–45%) is Korea's current, stable Income Tax Act Article 55, unrelated to this reform proposal — View full statute

Frequently Asked Questions

Is this calculator based on enacted law?

No. This reflects a tax reform proposal announced by Korea's Ministry of Economy and Finance on August 3, 2026. It still needs to go through pre-announcement, cabinet approval, and National Assembly review and passage. Specific figures may change, or the proposal itself may be scrapped, during legislative review.

Why do 2026 and 2027 show the same long-term deduction?

Different provisions of this reform take effect on different dates. The expanded basic deduction and the multi-home surcharge relief take effect January 1, 2027, but the long-term deduction (long-residence income deduction) reform takes effect January 1, 2028. So through 2027, the long-term deduction stays exactly as under current law, while the other provisions already reflect the proposal.

Why is a home sold for ₩1.2 billion or less tax-free for a 1-home owner?

Single-household, single-home owners are exempt on the portion of the sale price up to ₩1.2 billion (this is current law, unrelated to the reform proposal). Only homes sold above that threshold are taxed, and only on the gain proportional to the excess.

How does the long-term deduction differ between 1-home and multi-home owners?

Single-household, single-home owners add the residency deduction and holding deduction together (e.g. through 2027: up to 40% residency + up to 40% holding = up to 80%). Multi-home owners choose only whichever is larger between the two (once the residency option is introduced in 2028) — better of holding vs. residency — with a lower combined cap of 30%.

When does the multi-home surcharge apply?

When you own 2+ homes and sell one located in a regulated area — regardless of how long you held it. The current surcharge is +20%p (2 homes) / +30%p (3+ homes), temporarily relaxed to +5%p / +10%p in 2027 and +10%p / +15%p in 2028, returning to the current level in 2029. Note that this relief only applies with 2+ years of holding — under 2 years, the full current surcharge applies even during the relief window.

Do I lose the long-term deduction if the surcharge applies?

Yes. Homes subject to the regulated-area multi-home surcharge have the long-term deduction excluded entirely (Income Tax Act Article 95(2), effective April 1, 2018) — no matter how long you held the property. The 2027/2028 relief only lowers the rate; the surcharge designation itself remains, so the exclusion continues through the relief window.

I own one home but never lived in it — do I lose the exemption?

If the area was regulated when you acquired it, yes. A home acquired on or after August 3, 2017 in a regulated area needs 2 years of residency on top of 2 years of holding to qualify for the 1-home exemption. Gangnam, Seocho, Songpa and Yongsan in Seoul have been regulated continuously since then, and in October 2025 the designation expanded to all of Seoul — so renting your home out and living elsewhere may well put you in this bucket. It's judged at acquisition, so later de-designation doesn't remove the requirement. If you don't meet it, the entire gain is taxed even below ₩1.2 billion, and the long-term deduction drops from the 1-home table (up to 80%) to the general table (2%/year, up to 30%).

What if I sell before owning it for 2 years?

For homes, a flat 70% rate applies under 1 year of holding, and 60% from 1 to under 2 years (instead of the progressive table). You also get no long-term deduction (that requires 3+ years) and no 1-home exemption (that requires 2+ years). If the home is also surcharge-eligible, you're taxed at the greater of the progressive amount (including surcharge) or the short-holding flat amount.

Capital Gains Tax Reform Preview (2026 Proposal — Not Yet Law)

Sources (Government Proposal — Not Statute)

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Frequently Asked Questions