⚠️ This calculator is not law yet

This tool previews the comprehensive real estate tax reform direction announced by Korea's Ministry of Economy and Finance on August 3, 2026 (the "2026 Tax Reform Proposal"). After the public comment period (Aug 4–20), the cabinet approved a partially revised bill on September 1 (the non-occupying single-home deduction stays at the current ₩1.2 billion, and the tax burden ceiling stays at the current 150% — both reflected in this calculator), and it was submitted to the National Assembly on September 3. It is now under legislative review, where details may still change or the proposal may be scrapped entirely.

Pre-announcement
Cabinet meeting (revised)
National Assembly review
Enactment

Comprehensive Real Estate Tax Reform Preview (2026 Proposal — Not Yet Law)

This calculator covers comprehensive real estate tax only — no evidence was found that property tax (local tax) changes under this proposal. For property tax, use the existing Property Holding Tax Calculator.

Select Year (Reform Implementation Stage) 2026
Current law (proposal not yet applied) 2027
Stage 1: deduction & ratio changes (house-count tiers remain) 2028
Stage 2: unified value-based rates 2029
Same as 2028 (no rate/ratio change)

Total Announced Value of All Homes Held (KRW) Sum of announced values for all homes you own. e.g. 2000000000 Number of Homes

Owner-Occupied? (affects the 1-household-1-home deduction) Owner-occupied Not owner-occupied

Located in a regulated area (affects fair market value ratio from 2028 onward) Announced Value of the Home You Actually Live In (KRW) (optional) If you own 2+ homes and live in one of them, its announced value. Leave blank if you don't live in any of them — the multi-home deduction is "₩400 million + ₩500 million × (value of the home you live in ÷ total announced value)"; with none, only ₩400 million applies.

Age (years) (optional, for elderly tax credit — 1 household, 1 home only) Holding Period (years) (optional) Applies to the 2026 (current law) result and to 2027 (compared against residency period — whichever gives the larger credit is used). Residency Period (years) (optional) Applies to 2027 (compared against holding period) and from 2028 onward (only the residency credit is recognized).

Breakdown for Selected Year
Deduction - -	-
Fair Market Value Ratio - -	-
Tax Base = max(0, total announced value − deduction) × fair market value ratio -	-
Calculated Tax - -	-
Property Tax Credit (double taxation adjustment, approximate) - -	-
Tax Credit = (calculated tax − property tax credit) × credit rate (age + holding/residency, capped) -	-
Final Tax = calculated tax − property tax credit − tax credit -	-
Special Rural Development Tax (20% of final tax) -	-
Total = final tax + rural development tax -	-

Year-by-Year Comparison (same inputs)

Year	2026	2027	2028	2029
Deduction	-	-	-	-
Fair Market Value Ratio	-	-	-	-
Total (incl. rural tax)	-	-	-	-

Limitations of this calculator

Property tax credit (double taxation adjustment) follows the statutory formula. It's exact for single-home owners, but for multi-home owners this calculator only takes the combined announced value, so it assumes each home is worth ₩500 million or more — if any home falls below that, results may differ. "3+ homes" is computed as exactly 3, so with 4 or more homes your actual tax is slightly higher than shown.
Tax burden ceiling is not reflected — same reason as the existing calculator: no prior-year paid-tax data is available. (The original proposal's increase from 150% to 200% was withdrawn in the September 1 cabinet revision; the current 150% ceiling remains.)
Jointly owned single homes (spouses who did not elect the joint-owner special treatment) are not covered — this calculator assumes sole ownership. Under the revised bill, the joint-owner deduction is ₩900 million per spouse when owner-occupied (unchanged from current law) and ₩600 million per spouse when not occupied (eased from ₩400 million in the original proposal).
Tax credits (age / holding / residency) apply only to 1-household-1-home owners. The proposal doesn't mention a separate credit for multi-home owners.

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)

Frequently Asked Questions

Is this calculator based on enacted law?

No. The reform proposal announced by Korea's Ministry of Economy and Finance on August 3, 2026 went through public comment and a partially revised cabinet approval on September 1, and was submitted to the National Assembly on September 3 — but it still must pass the Assembly and be promulgated. Specific figures may change, or the proposal itself may be scrapped, during legislative review.

What changed in the September cabinet revision?

Reflecting public comments, two items from the August 3 original were rolled back. ① The non-occupying 1-household-1-home basic deduction: originally to be cut from ₩1.2 billion to ₩900 million, the revision keeps the current ₩1.2 billion — this calculator reflects that. ② The tax burden ceiling: the proposed increase from 150% to 200% was withdrawn, keeping the current 150%. In addition, the non-occupying deduction for jointly owned single homes was eased from ₩400 million to ₩600 million per spouse (joint ownership is not covered by this calculator). Everything else — the ₩1.4 billion owner-occupied deduction, multi-home deductions, rate tables, and fair market value ratios — went to the National Assembly unchanged from the original proposal.

Why does 2026 come out identical to current law?

Comprehensive real estate tax is assessed based on home ownership as of June 1 each year, and this proposal was announced afterward, on August 3, 2026. So the 2026 tax year is unaffected by this proposal and is calculated exactly as under current law.

Why does 2027 use a different rate table for 3+ homes?

The house-count-based rate tiers don't fully disappear until 2028. In 2027, only 1- and 2-home owners get the new rate table (0.5%–3.5%); owners of 3 or more homes are still taxed under the current-law rate table (e.g. 1.0% for the ₩600M–₩1.2B band) even in 2027. This calculator reflects that distinction — selecting 3+ homes uses the current-law table for 2027 as well.

How is the multi-home deduction calculated?

₩400 million, plus ₩500 million multiplied by "announced value of the home you live in ÷ total announced value of all your homes." So if you don't live in any of your homes, only ₩400 million applies; if effectively all your property value is concentrated in the one home you live in, it can rise to as much as ₩900 million (the same amount as today's flat multi-home deduction).

What's the dollar cap on the 1-household-1-home tax credit?

The combined age + holding/residency credit rate is still capped at 80%, same as today, but a new absolute cap is added on top: ₩8 million in 2027, and ₩6 million from 2028 onward. If the calculated credit exceeds that amount, only the cap applies.

Does this proposal also affect property tax?

No evidence was found in reporting on this proposal that property tax (local tax) changes. This calculator covers comprehensive real estate tax (national tax) only — for property tax, continue using the existing Property Holding Tax Calculator.

Comprehensive Real Estate Tax Reform Preview (2026 Proposal — Not Yet Law)

Sources (Government Proposal — Not Statute)

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