You pay acquisition tax when you register a car you’ve bought. Article 12 of Korea’s Local Tax Act sets 7% for non-business passenger cars, 4% for light cars, 5% for other non-business vehicles (vans, trucks) and 4% for business use. The Restriction of Special Local Taxation Act then cuts 750,000 won for light cars and 1.4 million won for electric cars (to 31 December 2026), and for 3 or more children exempts 7- to 10-seat cars and deducts 1.4 million won for other cars. A 30 million won ordinary car pays 2.1 million won. A calculator follows the statute.
1. Passenger cars 7%, light cars 4% — 2.1 million won on a 30 million won car.
2. Light cars get 750,000 won off, electric cars up to 1.4 million won (electric to 31 December 2026).
3. 3+ children: 7–10 seats exempt, other cars 1.4 million won off; 2 children: 50% (other cars over 1.4 million won: 700,000 won off).
Rates — Local Tax Act Art. 12(1)2
| Vehicle | Rate | Worth noting (ours) |
|---|---|---|
| Non-business passenger car | 70 per 1,000 (7%) | Scope by Presidential Decree |
| of which light cars | 40 per 1,000 (4%) | Light-car definition by Decree |
| Motorcycles in scope | 20 per 1,000 (2%) | — |
| Other non-business vehicles | 50 per 1,000 (5%); light 4% | Vans, trucks etc. |
| Other business vehicles | 40 per 1,000 (4%) | — |
What it’s applied to — Arts. 10-3 and 10-5
A bought car (acquisition for value) uses the actual acquisition price; if none is reported or it’s below the standard value, the standard value applies (Art. 10-5(1)2). A car received free uses the standard value (para. 1). What counts in the actual price is set by Decree, which we didn’t read.
Calculator
Updates as you type. Acquisition tax only — local education tax and other surtaxes aren’t included. The value for a used car is the actual price, or the standard value if that is higher (Art. 10-5). Reliefs have conditions (one vehicle, no transfer within a year, etc.) and only one is applied here.
Reliefs — Restriction of Special Local Taxation Act
| Relief | What the Act says | Worth noting (ours) |
|---|---|---|
| Light passenger car (Art. 67(1)) | Exempt up to 750,000 won; above that, 750,000 won off. To 31 December 2027 | Clawed back if used commercially within a year |
| Light van or truck (Art. 67(2)) | Exempt, to 31 December 2027 | Size by Decree |
| Electric car (Art. 66(4)) | Exempt up to 1.4 million won; above that, 1.4 million won off. To 31 December 2026 | Listed models only |
| Hydrogen car (Art. 66(5)) | Same 1.4 million won relief, to 31 December 2027 | Trucks get 50% under para. 6 |
| Hybrid (Art. 66(3)) | 400,000 won relief — to 31 December 2024 | Expired on the current text |
| 3+ children (Art. 22-2(1)) | First vehicle applied for exempt; cars other than 7–10 seats exempt up to 1.4 million won, else 1.4 million off | Children under 18 |
| 2 children (Art. 22-2(2)) | First vehicle 50% off; other cars 50% up to 1.4 million won, else 700,000 won off | Added 31 December 2024 |
The multi-child conditions (joint registration, replacements, claw-back within a year) are in multi-child car tax relief. The yearly tax is in car tax.
How much — our examples
| Example | Working | Worth noting (ours) |
|---|---|---|
| Ordinary car, 30m | 30m × 7% = 2.1 million won | — |
| Light car, 15m | 600,000 ≤ 750,000 → 0 | — |
| Light car, 20m | 800,000 − 750,000 = 50,000 won | — |
| Electric car, 50m | 3.5m − 1.4m = 2.1 million won | Bought by end-2026 |
| 3 children, ordinary car, 40m | 2.8m − 1.4m = 1.4 million won | — |
| 2 children, ordinary car, 40m | 2.8m − 0.7m = 2.1 million won | Over 1.4m, so 700,000 off |
The figures are our examples.
Checklist
- ☐ Passenger 7%, light 4%, other non-business 5%, business 4%
- ☐ Used car below standard value: standard value applies
- ☐ Light 750,000 and electric 1.4 million relief — check deadlines
- ☐ 2+ children: check the multi-child conditions
- ☐ Education tax and surtaxes are extra
Questions that remain
Is there no hybrid relief now?
The current Article 66(3) runs to 31 December 2024. No extension appears in the text we read.
Can I combine reliefs?
The articles we read don’t address combining. The calculator applies one; check with the local tax office.
Sources
- Korean law database (law.go.kr) — Local Tax Act Arts. 10-3, 10-5, 12 — source (current text, effective 1 January 2026, Act No. 21308; checked 19 October 2026). Five vehicle rates, light cars at 4%, tax base for purchases and gifts with the standard-value floor, and the amounts and deadlines of light, electric, hydrogen, hybrid and multi-child reliefs.
- Korean law database — Restriction of Special Local Taxation Act (effective 2 June 2026, No. 21738), Arts. 22-2, 66, 67.
- Not read. The Enforcement Decree (business use, light-car definition, actual price), education tax and surtaxes.
- What we added. The “worth noting” column and the Korean everyday gloss.
Where to check further
- Local tax office, Wetax — filing and claiming relief.
Written on 19 October 2026. The content is from the source; the glosses are ours.
