Korea's automobile tax is normally billed twice — in June and December. But paying the whole year upfront earns a discount, through a system called annual prepayment. Here's how much you save and when to apply.
1. How much do you save. The deduction is annual tax × (remaining days ÷ 365) × 5%. January gives about 4.6%, March 3.8%, June 2.5%, September 1.3% — it is proportional to what is left of the year, so earlier is bigger.
2. What gets missed. The familiar “10% prepayment discount” is not the right phrase today. And it does not renew itself — prepaying last year means nothing this year, and applying without paying by the deadline cancels it automatically.
3. When do I apply. January (usually the 16th to 31st) covers the full year; March, June and September cover what remains. A June prepayment covers only the second half, so the June bill for the first half is still due separately — this is where most people get caught.
How much do you actually save
The deduction is annual tax × (remaining days ÷ 365) × 5%. Converted to a share of the annual bill:
- January — about 4.6% (best)
- March — about 3.8%
- June — about 2.5%
- September — about 1.3% (last chance)
The discount used to be 10%; it is 5% now. Still, it's tens of thousands of won for a few clicks.
When do you apply
- January (typically Jan 16–31) — prepay the full year
- March, June, September — prepay only the remaining period
For example, June prepayment covers the second installment (July–December) due in December — and the first installment billed in June must still be paid separately. That trips a lot of people up.
It does not renew automatically. Prepaying last year means nothing this year — apply again. And if you apply but miss the payment deadline, it's cancelled and the normal June/December bills return.
Where do you apply
- Wetax (wetax.go.kr), or Etax in Seoul. Mobile apps, phone and district offices also work.
- Log in with simple authentication and use the automobile tax prepayment menu.
- Local taxes carry no credit-card fee, so card interest-free or cashback promotions add to the saving.
What if you sell the car
Sell or scrap it after prepaying and you're refunded for the period after the transfer or scrapping date. Prepaying doesn't cost you.
How is the tax set
- Passenger cars are taxed by engine displacement — bigger engine, bigger bill.
- The amount declines with vehicle age.
- EVs and hydrogen cars have no displacement, so separate rules apply — but the prepayment discount works the same.
Note that the one-time acquisition tax when buying a car is an entirely different tax, covered in the car acquisition tax guide.
Why “10% discount” is the wrong phrase
Two things are going on. First, the rate has come down. It used to be 10%; the rate applying in 2026 is 5% — the Seoul city government describes the January option as “a 5% tax credit on the automobile tax attributable to February through December (eleven months).”
Second, the 5% does not apply to the full annual tax. It applies only to the portion covering months after you pay. Pay later, discount less.
| Filing window | Months remaining | Discount | Share of annual tax |
|---|---|---|---|
| 16–31 January | 11 | ₩18,315 | 4.58% |
| 16–31 March | 9 | ₩14,985 | 3.75% |
| 16–30 June | 6 | ₩9,990 | 2.50% |
| 16–30 September | 3 | ₩4,995 | 1.25% |
— matches the 2026 guidance published by Seocho District, Seoul (about 4.58% in January, 3.76% in March, 2.51% in June, 1.25% in September). The won amounts are our calculation.
January and September differ by 3.7 times (our calculation). Believe “10% off”, apply in September, and you receive 1.25%.
The assumption, stated plainly. This divides the tax attributable to the remaining period by month, and the amount your local office bills may differ slightly.
Displacement sets the amount
| Displacement | Per cc | Example | + 30% education tax | Total |
|---|---|---|---|---|
| Up to 1,000cc | ₩80 | 999cc → ₩79,920 | ₩23,976 | ₩103,896 |
| Up to 1,600cc | ₩140 | 1,598cc → ₩223,720 | ₩67,116 | ₩290,836 |
| Over 1,600cc | ₩200 | 1,998cc → ₩399,600 | ₩119,880 | ₩519,480 |
We checked against the source's own example — “a 1,998cc vehicle pays roughly ₩400,000 a year” with “₩120,000 of education tax.” 1,998 × 200 = ₩399,600, and 30% of that is ₩119,880. It matches.
Cross 1,600cc and the per-cc rate jumps ₩60. 1,598cc and 1,601cc are three cc apart but ₩223,720 and ₩320,200 — a ₩96,480 gap (our calculation). Few buyers know the bands are a staircase.
Draw the tax against displacement and the line breaks twice rather than sloping.
Does an older car pay less
each half-year amount = A/2 − (A/2 × 5/100) × (n−2)
A: annual tax · n: vehicle age (2 ≤ n ≤ 12)
| Vehicle age | Annual tax, 1,998cc | Share |
|---|---|---|
| 2 years or less | ₩399,600 | 100% |
| 5 years | ₩339,660 | 85% |
| 8 years | ₩279,720 | 70% |
| 12 years or more | ₩199,800 | 50% |
The source states that “for vehicles older than 12 years, the age is treated as 12” — whether it is 13 or 20 years old, it stops at 50% (our calculation). The prepayment discount then applies to the age-reduced annual tax.
Push the statute's own formula out to twenty years and it stops partway.
Questions that remain
Is prepaying always worth it?
Usually, though it does mean paying earlier. A ~4% saving compares well with current deposit rates.
Can I still apply in July?
If January, March and June have passed, September is the year's last window. The smallest discount still beats none.
I never received a bill.
Look it up on Wetax. The obligation stands whether or not the notice arrived, and late payment adds penalties.
Is it billed with property tax?
No. the property tax calculator falls in July and September; automobile tax in June and December. Both are local taxes and appear together on Wetax.
Prepayment is a one-click saving — just remember it resets every year.
Sources
- Seoul Metropolitan Government — primary source — “Prepay your automobile tax and save 5%”. Source of the 2026 rate of 5% and the phrase “a 5% tax credit on the automobile tax attributable to February through December (eleven months).”
- Seocho District, Seoul — primary source — “Automobile tax prepayment discount”. Source of the 2026 shares by filing window (about 4.58% in January, 3.76% in March, 2.51% in June, 1.25% in September), which match our calculation.
- Ministry of Government Legislation — agency source — “Easy Law — What taxes do I pay when buying a car?” (page dated 15 June 2026). Source for the prepayment provision (Local Tax Act art.128(3)) verbatim, the four filing windows, the ₩80 / ₩140 / ₩200 per-cc rates, the 30% education tax, the vehicle-age formula and its twelve-year cap, the June and December due dates with March and September instalments, and the 1,998cc example.
- Ministry of Government Legislation — agency source — the “saving on car tax” section of the same page, for “100% under three years, then 5% a year up to 50%” and the disability, multi-child and light-car reductions.
- Our own calculation. The discounts by window (₩18,315 / ₩14,985 / ₩9,990 / ₩4,995) and their shares (4.58 / 3.75 / 2.50 / 1.25%), the tax and education tax by displacement, the ₩96,480 gap between 1,598cc and 1,601cc, and the annual tax by vehicle age are ours. Check: the source's ₩400,000 and ₩120,000 for 1,998cc both reproduce.
Where to check further
- The provision behind the 5% rate. Local government guidance is consistent at 5%, but copies of Local Tax Act art. 128 in circulation still read “10 per cent” — there appears to be a transitional provision by year, which we could not pin down in the statute for this article. Check article 128 and its addenda on the National Law Information Center at your filing date.
- This year's exact application window. It shifts by a few days between local governments — Wetax and the tax office of your registration district publish the notice each year.
- Rates for commercial, electric and light vehicles. Displacement is not the basis for every category — Wetax's automobile tax pre-calculation returns your own figure from the plate number.
As of July 2026. The statute and rate tables are the Easy Law service's own content; the discounts by window and the amounts by displacement are our arithmetic. The statute does not state the apportionment method, so billed amounts may differ. General information, not tax advice — check WeTax and your local government's notices. Purchase taxes are in our car purchase tax calculator, the yearly schedule in the tax calendar, and buying in the US in the US car cost article.
