The first tax you meet when buying a home in Korea is acquisition tax — and it ranges from 1% to 12% depending on how many homes you'll own and where. On a ₩900M home that's the difference between ₩27M and ₩108M. Worth calculating before you sign.
And there is more than one deadline. Seocho District's guidance lists them separately: 60 days for ordinary purchases, six months for inheritance, three months for gifts. Memorise only “60 days” and you will miss the deadline on a gifted home.
1. What it costs. On a ₩900M home: ₩27M with one home, ₩108M with three — four times the tax on the same property. The ₩600M–900M band is not a step but a continuous slope from 1.00% to 3.00%.
2. What people get wrong. There is more than one filing deadline — 60 days generally, but 6 months for inheritance and 3 months for a gift. And acquisition tax is not the only line: local education tax and the special rural development tax ride along.
3. What to do. Settle how many homes you will own before you sign. In some cases the balance-payment date you choose changes the rate.
For a purchase, acquisition tax is due within 60 days of acquisition (usually the balance payment date). A scrivener typically handles it with registration, but know the amount in advance so your funding plan holds.
Housing acquisition tax rates
Rates depend on the number of homes you'll own after the purchase and whether the area is regulated. Seocho District's published table reads:
| Area | 1 home | 2 homes | 3 homes | Corporate / 4+ |
|---|---|---|---|---|
| Regulated | 1–3% | 8% | 12% | 12% |
| Non-regulated | 1–3% | 1–3% | 8% | 12% |
Note it's the count after the purchase, and it includes every home in your household.
Non-residential property runs on its own table. Guri City lists standard rates of 3.00% on farmland, 4.00% on other real estate, 2.80% on original acquisition, 2.30% and 2.80% on inherited farmland and other property, and 3.50% on gratuitous acquisition. Officetels and commercial units take the 4%.
The single-home bracket is a slope, not a cliff
| Up to ₩600M | 1% |
| ₩600M – ₩900M | statutory formula below → 1.00% to 3.00% |
| Over ₩900M | 3% |
This band's rate is not tabulated — it is calculated. The statute (Local Tax Act art. 11(1)8(b)) gives the formula:
rate = (acquisition price × 2 ÷ ₩300M − 3) × 1/100
“In this case, round at the fifth decimal place and compute to four decimal places.”
— Local Tax Act art. 11(1)8(b) (Act No. 21308, in force 1 July 2026)
Applied across the whole band:
| Acquisition price | Rate | Tax |
|---|---|---|
| ₩600M | 1.00% | ₩6.0M |
| ₩650M | 1.33% | ₩8.645M |
| ₩700M | 1.67% | ₩11.69M |
| ₩750M | 2.00% | ₩15.0M |
| ₩800M | 2.33% | ₩18.64M |
| ₩900M | 3.00% | ₩27.0M |
The two ends meet exactly (our calculation). Feed in ₩600M and you get 1.00%, matching sub-paragraph (a)'s “10 per 1,000”; feed in ₩900M and you get 3.00%, matching (c)'s “30 per 1,000.” The formula is built to make the bands continuous.
So ₩601M does not suddenly jump. The widely-quoted “1.01–2.99%” is Seocho's phrasing — by the statute the endpoints are 1.00% and 3.00%.
Buying a share works differently. The same provision carries a separate conversion: whole-property acquisition price = the share's acquisition price × (whole property's assessed value ÷ the share's assessed value). In other words, the rate is set by what the whole home is worth, not by what you paid. Buying half does not put you in the sub-₩600M band.
The surcharge rates are not fixed numbers
This structure is not widely known, and knowing it makes other sources readable. Guri City's page introduces a “standard surcharge rate of 2.00%”: surcharges in over-concentration and metropolitan zones are computed as the standard rate plus 2%, doubled or tripled, and for villas and luxury housing as the standard rate plus 2%, quadrupled.
So “12%” is not a figure written into the statute — it is what falls out of a multiplier. That is why changing only the multiplier at amendment time moves the final rate sharply.
Gifts deserve care too. Guri lists the standard rate on gratuitous acquisition as 3.50% — but states that where the home is valued at ₩300M or more, 12% applies. People who remember only “gifts are 3.5%” get a bill more than three times what they expected.
It isn't only acquisition tax — the surtaxes
| Acquisition tax | The main tax (1–12%) |
| Local education tax | Linked to the acquisition tax rate |
| Special rural development tax | Applies above 85㎡; widely reported as exempt at 85㎡ or under |
The floor-area condition is one quiet reason the 84㎡ “national size” stays popular. Rural development tax is 10% of the acquisition tax computed at 2% (Special Tax for Rural Development Act art. 5(1)6) — 0.2% at standard rates, 0.6% under the 8% surcharge, 1.0% under 12%; the rural surtax article works through the provision. Confirm the total on the bill through Wetax or your district tax office.
Local education tax is not “a percentage of the acquisition tax”
Local education tax is usually introduced as “a percentage of the acquisition tax.” The method in Local Tax Act art. 151 is not that.
Art. 151(1)1 — “the amount computed by applying to the tax base the rates under art. 11(1)1 to 7 and art. 12 less 20/1,000 (in the case of art. 11(1)8, the amount computed by applying 50 per cent of that rate), multiplied by 20 per cent.”
It is not “20% of the acquisition tax” but “(the rate − 2%) × 20%.” And homes (art. 11(1)8) use a different formula entirely — half the rate, then 20% of that. Worked through (our arithmetic):
| Acquisition | Rate | Computation | Education tax |
|---|---|---|---|
| Home up to ₩600M | 1% | (1% × 50%) × 20% | 0.1% |
| Home above ₩900M | 3% | (3% × 50%) × 20% | 0.3% |
| Non-residential property | 4% | (4% − 2%) × 20% | 0.4% |
| Inheritance (non-farm) | 2.8% | (2.8% − 2%) × 20% | 0.16% |
| Gift (gratuitous) | 3.5% | (3.5% − 2%) × 20% | 0.3% |
Why the “less 20/1,000” matters — the closer the acquisition rate sits to 2%, the closer the education tax falls to zero. Estimating it as “a percentage of the acquisition tax” goes badly wrong at the low end.
A surcharged purchase carries the education tax up with it. Art. 151(1)1(a): where the surcharge provisions apply, the education tax is 300 per cent of the amount computed above. Though a corporation acquiring a home falls under sub-item (b) instead.
Relief on the acquisition tax carries across too — sub-item (c): “where the relief legislation sets a reduction rate for acquisition tax: the education tax computed as above, reduced by that same rate.” The main tax is not cut while the surtax stays whole.
Set the rule of thumb beside the statutory formula and the gap differs line by line.
What changed in 2026
From the Korea Association of Realtors' summary of the 2026 amendments, the items touching acquisition tax are these.
| Item | Change |
|---|---|
| Home purchase for childbirth or child-rearing | 100% relief, capped at ₩5M |
| First-home relief in population-decline areas | Cap ₩2M → ₩3M |
| Second home in a population-decline area | 25% relief (₩750K cap) plus up to 25% more by local ordinance, ₩1.5M combined cap. Price limit ₩300M, or ₩1.2B in decline areas outside the capital region |
| Related-party purchase below value | Gap of ₩300M or more, or 5% of the recognised market value |
| Unsold completed flats outside the capital region (first purchase) | 25% relief — price ₩600M or less, 85㎡ or less (until end-2026) |
These three rows were rewritten from the statutes on 23 September 2026. The second-home relief is Restriction of Special Local Taxation Act art. 75-5(4) (25%, ₩750K cap) and (5) (ordinance top-up, ₩1.5M combined), with the price limit in Enforcement Decree art. 35-6(4)1. The related-party test in Local Tax Act Enforcement Decree art. 18-2 reads “5/100”, not the 30% the article gave. The unsold-flat relief in art. 33-3(4) is ₩600M or less; the article’s “₩700M” appears nowhere in the current act or the Local Tax Act decree.
Two provisions are routinely conflated. The 100% relief capped at ₩5M is for childbirth and child-rearing purchases; the population-decline change is a first-home cap raised to ₩3M. Plenty of write-ups merge them into one.
First-home buyer relief
🔴 Corrected from art. 36-3 of the Restriction of Special Local Taxation Act (checked 27 September 2026). The earlier version said “a household with no home” and “₩3M only in population-decline areas”. The provision says otherwise: the test is that you and your spouse have never owned a home, and the ₩3M cap also covers non-apartment multi-unit homes, urban-type homes and multi-household houses of 60㎡ or less and ₩300M (₩600M in the capital area) or less. Everything else gets ₩2M. There is no income test in the provision.
| Maximum relief | ₩2M; ₩3M for small non-apartment homes and population-decline areas (exempt outright if the tax is under the cap) |
| Eligibility | You and your spouse have never owned a home; minors excluded |
| Price limit | Acquisition value ₩1.2 billion or less, bought to live in, by purchase (not a debt-bearing gift), until 31 December 2028 |
Temporary two homes — the upgrade rule
- Becoming a two-home owner through a move or marriage can still qualify for 1–3% rates if you dispose of the old home in time.
- The disposal window is three years, with no regional variation (Local Tax Act Enforcement Decree art. 28-5 — read in the acquisition tax calculator article).
- Miss the deadline and the difference is clawed back — the gap between 8% and 1–3% is substantial.
- Declare the temporary two-home status when filing.
If you're late, there is relief
Ansan City's Sangnok-gu page sets out the penalties precisely: 20% for non-filing, 10% for under-reporting, and 22 per 100,000 per day for late payment. But that isn't the end of it.
| Type | Within 1 month | Within 3 months | Within 6 months |
|---|---|---|---|
| Late filing | 50% reduction | 30% reduction | 20% reduction |
| Amended filing | 90% reduction | 75% reduction | 50% reduction |
Correcting a mis-filing within one month cuts the penalty by 90%. “It's already late, nothing to be done” is exactly wrong — every day earlier is money. The same page puts the penalty for reselling without registering at 80% of the acquisition tax.
Turn the relief percentages into what you actually pay and the value of moving early becomes concrete.
Counting homes — the confusing parts
| Residential officetel | May count toward home number (taxed at 4% itself) |
| Pre-sale rights | Counted, depending on acquisition date |
| Inherited home | Special rules may exclude it for a period |
| Homes under ₩100M published price | May be excluded from the surcharge |
This is where disputes arise. When unsure, ask Wetax or your district tax office before signing — misfiling brings penalties.
Pre-contract checklist
- Count household homes after purchase
- Check whether the area is regulated
- Check whether the unit exceeds 85㎡
- Check first-home and childbirth relief eligibility
- If upgrading, confirm the disposal deadline
- Budget the amount — it's due within 60 days, separate from the purchase price
Run the numbers in the property tax calculator first. The full sequence from contract to registration is in the apartment purchase guide.
Questions you may have
When is it due?
For a purchase, within 60 days of acquisition. Inheritance is six months and gifts are three months — all different.
Is a gifted property taxed differently?
Yes. The standard gratuitous-acquisition rate is 3.50%, but 12% applies where the home is valued at ₩300M or more.
Do new-build purchases pay it?
Yes — at occupancy (balance payment), not at contract.
I forgot to file.
A late filing within one month cuts the penalty by 50%. Do it now.
Is it deductible later?
Yes, as an allowable expense for capital gains tax. Keep the receipt.
What do I pay every year after buying?
Property tax annually, plus the comprehensive real estate tax above a certain assessed value. The assessment date is 1 June, which matters when you set your closing date.
Where to check further
- Your district's actual rates and reliefs. Acquisition tax is a local tax, so guidance and relief practice vary a little by municipality. The pages quoted here are Seocho-gu, Guri City and Ansan Sangnok-gu. Open the tax office page for the district the property sits in.
- Where to file and pay. Local tax filing and payment go through Wetax (Seoul uses Etax). A judicial scrivener usually handles it alongside registration — but you should know the amount and the deadline yourself so the cash plan holds.
- Your own number. The tables above stop at rates; the actual bill depends on price, home count and location — run it through the property tax calculator. Holding costs are in the property tax guide, and selling in the single-home capital gains guide.
Between 600 million and 900 million won the rate rises on a slope — what another KRW 10m of price adds in tax is worked out in the acquisition tax slope band.
A deed also carries stamp duty — 20,000 to 350,000 won on property deeds, with homes of 100 million won or less exempt (stamp duty).
Sources and where to check
- Local Tax Act (in force 1 July 2026, Act No. 21308) — Articles 6, 11 and 13-2 (checked August 2026). Rates previously taken from municipal guidance are now checked against the statute itself. Source for the standard rates in Article 11(1) — inheritance of farmland 23/1000 and other land 28/1000, gratuitous acquisition 35/1000 (28/1000 for non-profit bodies), original acquisition 28/1000, partition of co-owned property 23/1000, other causes 30/1000 for farmland and 40/1000 otherwise — the housing rates in Article 11(1)8: 10/1000 up to 600 million won and 30/1000 above 900 million, the definition of the “heavy taxation standard rate” in Article 6(19) as “20/1000”, and the fact that Article 13-2(1) states the heavy rates not as figures but as “the rate under Article 11(1)7(b) as the standard rate, plus 200 (or 400) percent of the heavy taxation standard rate.” This is what establishes that the 8% and 12% in the body are computed values absent from the statute. The same provision also carries the rate formula in art. 11(1)8(b) (acquisition price × 2 ÷ ₩300M − 3, × 1/100, rounded at the fifth decimal to four places) and the conversion for acquiring a share. Both formulas are embedded as images in the statute text and cannot be extracted as text — they were read directly from the national statute portal screen.
- Seocho District Office — acquisition tax (last updated 20 December 2023). Source of the regulated/non-regulated rate table, the “1% / 1.01–2.99% / 3%” bands, the 60-day, six-month and three-month deadlines, and the 20%, 10% and daily 22-per-100,000 penalties.
- Korean Law Information Center — statute — Local Tax Act art. 151 (local education tax base and rates) (in force 1 Jan 2026, Act no. 21308). Source for the “rate less 20/1,000, times 20 per cent” structure, the “rate × 50 per cent” exception for homes, the 300 per cent multiplier on surcharged acquisitions, and the carry-across of acquisition tax relief. This closes the “exact local education tax rate” item — and it was never a percentage of the acquisition tax.
- Guri City Hall — acquisition tax (last updated 24 November 2023). Source of the full standard rate table, the 2.00% standard surcharge rate and its multiplier structure, and the rule that gratuitous acquisition of a home valued at ₩300M or more takes 12%.
- Ansan City Sangnok-gu tax office — acquisition tax. Source of the late-filing (50/30/20%) and amended-filing (90/75/50%) reductions and the 80% unregistered-resale penalty.
- Korea Association of Realtors news — summary of 2026 property tax amendments (February 2026). Source of the 100% childbirth relief capped at ₩5M, the ₩2M → ₩3M population-decline first-home cap, the ₩300M → ₩1.2B second-home threshold, the related-party test and the unsold new-build threshold — the last two figures (30%, ₩700M) differ from the current statutes, and the table now follows the statutes.
Written as of July 2026. The rate tables, deadlines, penalties, reductions, standard surcharge rate and the 12% gift rule come from the municipal pages above; the 2026 amendments come from the realtors’ association article, two of them confirmed on 23 September 2026 in the Restriction of Special Local Taxation Act — art. 36-5 (homes bought for childbirth and childcare: up to ₩1.2B, tax up to ₩5M waived, ₩5M deducted above that, until end-2028) and art. 36-3(1)1(d) (first homes in population-decline areas: up to ₩3M). The other three were rewritten from the statutes the same day — second homes under art. 75-5(4)–(5) and decree art. 35-6(4), the related-party test under Local Tax Act decree art. 18-2 (5%, not 30%), and unsold flats under art. 33-3(4) (₩600M, not ₩700M). Because the Seocho and Guri pages were last updated in 2023, the two core items were re-checked against the current Local Tax Act on 23 September 2026: art. 13-2(1) sets the surcharge as the 4% standard rate plus 200% or 400% of the 2% surcharge base rate — 8% or 12%, matching the table above; and art. 20(1) confirms the deadlines, with the gift (3 months) and inheritance (6 months) periods counted from the end of the month of acquisition or death, and 9 months where an heir lives abroad. The local education tax computation was checked directly against Local Tax Act art. 151 this time — it is “(rate − 2%) × 20%”, or “rate × 50% × 20%” for homes, not a share of the acquisition tax. The rural surtax, first-home relief and the temporary two-home window were filled from the provisions on 27 September 2026 (above). The current list of regulated areas is not covered here. Re-confirm with Wetax and your own city or district tax office before signing. This is general information, not tax advice.
