Buying or selling property in Korea? You pay acquisition tax when you buy and capital gains tax when you sell. Calculate both below (2026 rates).
1. What will it cost. Acquisition tax is 1% up to ₩600M and 3% above ₩900M — but in between it is a ramp, not a step: the rate climbs continuously with the price. Multi-home buyers jump to 8% and 12%.
2. What gets missed. Acquisition tax is not the whole bill — local education tax and the special rural development tax ride on top, and 85㎡ of exclusive floor area decides ₩2M. The surcharge turns on whether the property sits in a regulated area; there are forty of them right now.
3. How to use it. The calculator splits into buying and selling tabs. Results are estimates, and what is left out — long-term holding deduction, necessary expenses — is listed below.
| Acquisition tax | 0 |
| First-time discount up to ₩2M | 0 |
| Local education tax 10% of acq. tax | 0 |
| Rural special tax 0.2% (over 85㎡) | 0 |
| Total | 0 |
Agent fees, legal fees, and stamp duty are additional.
| Capital gain sale - purchase - costs | 0 |
| Taxable gain portion above ₩1.2B | 0 |
| Long-term holding deduction 0% | 0 |
| Basic deduction ₩2.5M/yr | 0 |
| Taxable base | 0 |
| Capital gains tax | 0 |
| Local income tax 10% of CGT | 0 |
| Total | 0 |
Estimate based on 2026 rates. Actual tax varies significantly with regulated-area designation, temporary two-home exemptions, and surcharge suspensions. Consult a Korean tax professional.
Buying — what is the acquisition tax
When you buy, you pay acquisition tax + local education tax, plus a rural special tax if the floor area exceeds 85㎡.
| Homes owned | Price | Rate |
|---|---|---|
| 1 home | Under ₩600M | 1% |
| ₩600M–900M | 1–3% (sliding) | |
| Over ₩900M | 3% | |
| 2 homes | Regulated area | 8% |
| 3+ homes | Non-regulated | 8% |
| Regulated area | 12% | |
| Officetel | — | 4% (flat) |
First-time buyer discount. Buying your first home under ₩1.2 billion gets you up to ₩2 million off the acquisition tax (through end of 2028).
Acquisition tax must be filed and paid within 60 days of acquisition, or penalties apply.
What rate applies between ₩600M and ₩900M
Most people remember housing acquisition tax as “1% up to 600M, 3% above 900M.” The band in between has its own published formula (as of 15 June 2026).
For a home acquired at more than ₩600M and up to ₩900M:
(acquisition price × 2/300M − 3) × 1/100
| Price | Rate from the formula | Acquisition tax |
|---|---|---|
| ₩500M | 1.00% | ₩5.0M |
| ₩600M | 1.00% | ₩6.0M |
| ₩700M | 1.67% | ₩11.67M |
| ₩750M | 2.00% | ₩15.0M |
| ₩800M | 2.33% | ₩18.67M |
| ₩900M | 3.00% | ₩27.0M |
| ₩1,000M | 3.00% | ₩30.0M |
We checked it. Feed in ₩600M and the formula returns exactly 1%; feed in ₩900M and it returns exactly 3% — it joins both flat bands smoothly. So there is no jump at ₩600,000,001, nor at ₩900M.
“Cross 600M and the rate jumps” is the common belief; the published formula says otherwise. The genuine cliffs are in the multi-home surcharge below.
How much does a second home add
The source expresses it as the 4% standard rate plus a multiple of the “surcharge base rate” of 2% (Local Tax Act art.13-2). Worked out:
| Situation | Source wording | Effective rate |
|---|---|---|
| Second home in a regulated area (third outside) | 4% + 200% of the surcharge base | 8% |
| Third or more in a regulated area (fourth or more outside) | 4% + 400% of the surcharge base | 12% |
| Corporations | 4% + 400% of the surcharge base | 12% |
4 + 2×2 = 8 and 4 + 2×4 = 12 resolve exactly (our calculation). A temporary second home is excluded, and the source notes a penalty if you declare a temporary second home but fail to dispose of the old one within three years (one year where both are in regulated areas).
“Luxury housing” adds 80/1000 to the standard rate — the source enumerates the tests: floor area over 331㎡, land over 662㎡, a lift, an escalator or a pool of 67㎡ or more.
The same 1bn won home, and the acquisition tax splits like this by how many you already own.
Where are the regulated areas
This is the blank this article kept carrying. Regulated-area status is what separates 8% from 1–3%, and the ministry page would not open. We now have the Ministry of Land, Infrastructure and Transport press reference material issued 30 June 2026.
| Region | Designated districts | Count |
|---|---|---|
| Seoul | Gangnam, Seocho, Songpa, Yongsan / Seongdong, Mapo, Gangdong, Yeongdeungpo, Yangcheon, Dongjak, Gwangjin, Jung, Jongno, Seodaemun, Gangseo, Nowon, Seongbuk, Guro, Dongdaemun, Gwanak, Eunpyeong, Jungnang, Geumcheon, Gangbuk, Dobong | 25 districts |
| Gyeonggi | Suwon Jangan, Suwon Paldal, Suwon Yeongtong / Seongnam Sujeong, Seongnam Jungwon, Seongnam Bundang / Anyang Dongan, Gwacheon, Yongin Suji, Gwangmyeong, Hanam, Uiwang / Hwaseong Dongtan, Yongin Giheung, Guri | 15 areas |
| Total | — | 40 |
The striking part is elsewhere: the speculative-overheating zones and the regulated areas are now the same list. In the material's “after designation” table, both columns hold the identical 40 areas (our comparison). Two separate designations currently share one map.
The designation dates differ. Gangnam, Seocho, Songpa and Yongsan became speculative-overheating zones on 3 August 2017 but regulated areas on 3 November 2016 — nine months apart. The other 21 Seoul districts and 12 Gyeonggi areas were designated together on 16 October 2025; the three new ones take effect 1 July 2026.
The material gives the numbers behind the three additions — monthly change in house purchase prices (%).
· Hwaseong Dongtan Feb 0.78 → Mar 1.10 → Apr 1.13 → May 1.57 (still accelerating)
· Yongin Giheung Feb 1.08 → Mar 0.74 → Apr 0.85 → May 0.95
· Guri Feb 1.77 → Mar 1.18 → Apr 1.16 → May 1.15 (already cooling)
Three different pictures. Only Hwaseong Dongtan is speeding up; Guri peaked in February (our comparison).
Lending bites before the tax does. The same material's table of regulated-area effects sets the LTV for a home purchase mortgage at 40% with no home owned and 0% if you already own one, with a ceiling of ₩600 million and an obligation to move in within six months. Outside the regulated areas and the capital region, the comparable figures are 70% and 60% — roughly double.
Land transaction permit zones are a separate designation. Gyeonggi Province plans to designate the three areas from 5 July 2026 to 31 December 2027. Because the effect starts five days after the 30 June announcement, there is a four-day window between announcement and effect.
This list is as of 30 June 2026. Designations change whenever the Housing Policy Deliberation Committee decides, so check the current status again before contracting.
What else rides on top of acquisition tax
A buyer pays two more taxes alongside.
| Tax | Formula in the source | On a home |
|---|---|---|
| Local education tax | [base × (acquisition rate − 20/1000)] × 20/100 for homes, apply “the rate × 50/100” then × 20/100 | at a 3% rate, 0.3% |
| Special rural development tax | 10% of the acquisition tax computed at the 2% standard rate | 0.2% of price |
| Exemption | “The special rural development tax is not imposed on buyers of homes with an exclusive floor area of 85㎡ or less” | |
On a ₩1 billion home, that single 85㎡ line is worth ₩2 million (our calculation: ₩1B × 2% × 10%). One reason so many Korean apartments are built at exactly 84㎡. If you move between pyeong and square metres often, the unit converter does it — and explains why “pyeong” cannot legally be used in advertising.
| Price | Acquisition | Education | Rural (over 85㎡) | Total (≤85㎡) | Total (>85㎡) |
|---|---|---|---|---|---|
| ₩500M | ₩5.0M | ₩0.5M | ₩1.0M | ₩5.5M | ₩6.5M |
| ₩750M | ₩15.0M | ₩1.5M | ₩1.5M | ₩16.5M | ₩18.0M |
| ₩1,000M | ₩30.0M | ₩3.0M | ₩2.0M | ₩33.0M | ₩35.0M |
| ₩1,500M | ₩45.0M | ₩4.5M | ₩3.0M | ₩49.5M | ₩52.5M |
The filing deadline is in the source too — “within 60 days of the date of acquisition”, with the education and rural development taxes filed and paid together with the acquisition tax.
Two more taxes ride on the acquisition tax, and one of them turns on floor area.
Selling — what is the capital gains tax
The single-home exemption (most important)
Held 2+ years (plus 2 years of residence in regulated areas) + sale price under ₩1.2 billion → zero capital gains tax.
Above ₩1.2B, only the gain attributable to the portion above ₩1.2B is taxed — not the whole gain.
Holding period drives everything
- Under 1 year — 70% (punitive)
- 1–2 years — 60%
- 2+ years — normal progressive rates (6–45%)
Long-term holding deduction
- Single home — 8%/year (4% holding + 4% residence), up to 80%
- Otherwise — 2%/year, up to 30%
Keep your receipts. Acquisition tax, agent fees, and renovation costs are deducted from the gain. Without documentation, you pay more tax than you need to.
What this calculator leaves out
- Agent fees, legal fees, stamp duty (extra at purchase)
- Annual property tax and comprehensive real estate tax
- Temporary surcharge suspensions (rules change often)
- Temporary two-home exemptions (e.g. when moving)
Korean property tax swings wildly with holding period and number of homes. The same ₩300M gain can mean zero tax — or over ₩100M.
Sources
- Ministry of Government Legislation — agency source — “Easy Law — Taxes borne by the buyer” (page dated 15 June 2026). Source for the housing rates (1% to ₩600M, the ₩600–900M formula, 3% above), 3.5% on gratuitous acquisition, 2.8% on original acquisition, 3% farmland and 4% other, the multi-home surcharge at 200% and 400% of the 2% base, the luxury-housing tests, the education and rural development tax formulas, the 85㎡ exemption, the 60-day filing deadline and the penalties — each with its statutory citation.
- Seocho-gu, Seoul — local government tax guidance — “Acquisition tax” (checked 30 July 2026), cross-checked against our working of the 1–3% / 8% / 12% table by regulated-area status and homes owned.
- Ministry of Land, Infrastructure and Transport — agency source — “Additional designation of speculative overheating zones and regulated areas”, press reference material issued 30 June 2026 (Housing Policy Division). Source for the full list of 25 Seoul districts and 15 Gyeonggi areas, the fact that the two designations now coincide, the designation dates, the monthly price changes for the three additions, the 40% / 0% LTV and ₩600M ceiling, and the land transaction permit dates.
- Our own calculation. The rates by price (1.00 / 1.67 / 2.00 / 2.33 / 3.00%), the acquisition, education and rural development tax amounts and totals, the ₩2M difference at 85㎡ on a ₩1B home, and the 8% and 12% surcharge rates are ours, from applying the published formulas — not tables the agency prints. Check: the formula returns exactly 1% at ₩600M and exactly 3% at ₩900M.
Where to check further
- The formula in Local Tax Act art. 11(1)8(b). The rate formula for the ₩600M–₩900M band is published as an image, so we could not reproduce the statutory wording — Wetax's local tax pre-calculation applies the same formula to a real figure.
- The current list of regulated areas. It changes by ministry notice — check Ministry of Land notices and the Korea Real Estate Board for the position at your contract date.
- Long-term holding deduction and necessary expenses. Neither is in this calculator — both swing heavily on years held and on receipts, so use Hometax's capital gains pre-calculation.
As of July 2026. The rates and formulas are the Easy Law service's own content; the amounts and totals are our arithmetic. Regulated-area designation, surcharge suspensions and special exemptions change the result dramatically. General information, not tax advice — consult a Korean tax accountant before any transaction. Acquisition tax alone is in the acquisition tax article, gains in the capital gains article, holding taxes in the comprehensive property tax article, and car purchase tax in the car tax calculator.
