A one-home owner in Korea who is older, or has held the home a long time, can ask to defer the property tax until the home is sold or inherited. Article 118-2 of the Local Tax Act, added on 14 March 2023, lets the local government approve a deferral of the housing property tax on a one-home household’s home when the owner meets all five conditions and applies no later than 3 days before the due date: (1) a one-home household on the assessment date, (2) aged 60 or over, or held the home for 5 years or more, (3) last year’s total wages of 70 million won or less (or global income of 60 million won or less), (4) that year’s tax over 1 million won, and (5) no unpaid local or national tax. The checker below tests the five and estimates the interest add-on due if the deferral ends.
1. All five conditions — one-home household, 60+ or held 5+ years, income test, tax over 1 million won, no arrears.
2. Apply no later than 3 days before the due date and provide security equal to the deferred tax.
3. Selling the home or inheritance ends it — the deferred tax is paid with an interest add-on.
Checker
Updates as you type. Income is for the previous tax period. The interest add-on is our estimate: deferred tax × days × 3.1% ÷ 365 (the rate is from Framework Act on Local Taxes Decree Art. 43(2) via National Tax Basic Act Rule Art. 19-3; division by 365 and flooring are our method). Approval is the local government’s decision.
The five conditions — Art. 118-2(1)
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| Main text | The head of the local government may approve a deferral of the property tax (with taxes levied alongside it, “housing property tax”) on a one-home household’s home under Art. 111-2 (including homes with a standard value over 900 million won) if the taxpayer meets all of the following and applies no later than 3 days before the due date. The applicant must provide security equal to the tax deferred. | Homes over 900 million won included |
| Item 1 | Owner of a one-home household under Art. 111-2 on the assessment date | The assessment date is 1 June (Art. 114) |
| Item 2 | Aged 60 or over, or held the home for 5 years or more, on the assessment date | Either one |
| Item 3 | (a) Total wages of 70 million won or less in the previous tax period (wage earners only, or with income not added to global income); (b) global income of 60 million won or less (only where total wages do not exceed 70 million won) | (b) also carries the 70 million wage limit |
| Item 4 | The year’s property tax on the home exceeds 1 million won | Exactly 1 million does not qualify |
| Item 5 | No unpaid local or national tax | Both |
The bracket in the main text matters. The one-home rate concession (Art. 111-2(1)) is limited to homes valued at 900 million won or less, but the deferral expressly includes one-home households above 900 million won — a band that gets no rate concession can still defer (our reading).
Applying and notice — by when
Para. 2 requires the office to give notice of its decision by the due date; Decree Art. 116-2 sets the forms. Housing tax is billed half in July and half in September (Art. 115), so for the 2026 bills:
| Bill (2026) | Last day to apply (our count) | Worth noting (ours) |
|---|---|---|
| July bill — due 31 July | Tue 28 July | 3 days before the 31st |
| September bill — due 30 September | Mon 28 September | 27 September is a Sunday → next day (Framework Act on Local Taxes Art. 24) |
We read “3 days before” as three days back from the due date and moved a weekend or holiday to the next day under Art. 24 (our count). The 2026 windows have passed, so this applies from the July 2027 bill. The same structure for the comprehensive real estate holding tax is in our comprehensive property tax deferral checker.
Six ways it is cancelled — para. 3
| Type | What the source says | Worth noting (ours) |
|---|---|---|
| Items 1–2 | The home is transferred or given to another / the owner dies and inheritance begins | The usual end |
| Item 3 | The one-home condition in para. 1 item 1 is no longer met | Buying another home |
| Items 4–5 | Failing to follow orders on security / the whole tax cannot be collected under the Local Tax Collection Act Art. 22(1) | Security and collection |
| Item 6 | The taxpayer wants to pay the deferred tax | It can be ended voluntarily |
On cancellation, para. 5 requires payment of the deferred tax plus an interest add-on; heirs pay up to what they inherited. Para. 6 waives the late-payment penalty under Framework Act Art. 55 from approval to the new notice.
The interest add-on — Decree Art. 116-2(3)
The amount due is (1) the approved tax minus what was paid, plus (2) that amount × the period from the day after the original due date to the day the cancellation event occurs × the rate. The rate is the one in Framework Act on Local Taxes Decree Art. 43(2), which points to National Tax Basic Act Decree Art. 43-3(2); the Rule Art. 19-3 sets it at 31/1,000 a year (3.1%).
| Example (ours) | Interest add-on | Worth noting (ours) |
|---|---|---|
| 2 million won deferred, 1 Aug 2026 to 31 Jul 2027 (365 days) | 62,000 won | 2,000,000 × 365 × 3.1% ÷ 365 |
| 1.5 million won deferred, 730 days | 93,000 won | About 6.2% over two years |
Counting in days and dividing the annual rate by 365 is our method. The rate is revised by ordinance (most recently 2 January 2026); we did not check how a mid-period change is handled.
Checklist
- ☐ One-home household on 1 June (over 900 million won is fine)
- ☐ Aged 60+ or held 5+ years
- ☐ Last period’s wages 70 million or less / global income 60 million or less
- ☐ Tax over 1 million won; no arrears
- ☐ Apply 3 days before the due date; arrange security
Questions that remain
How is this different from instalments?
Instalments (Art. 118) push part of a bill over 2.5 million won back 3 months, with no security. Deferral lets an eligible one-home owner postpone, with security, until sale or inheritance. See our property tax instalment calculator.
What counts as security?
Para. 1 only says “security equal to the tax deferred”. The forms of security are presumably in the Framework Act on Local Taxes; we did not read them this time.
Can I estimate the tax first?
Our housing property tax calculator rebuilds the tax from the published value, which helps check the 1 million won test.
Sources
- Korean law database (law.go.kr) — Local Tax Act Art. 118-2 — source (current text, effective 1 July 2026, Act No. 21308; checked 28 October 2026). The five conditions (one-home incl. over 900 million won, 60+ or 5 years, 70 million wages / 60 million global income, over 1 million won, no arrears), application 3 days before the due date with security, notice, six cancellation grounds, interest add-on, late-penalty waiver (added 14 Mar 2023).
- Korean law database — Enforcement Decree of the Local Tax Act Art. 116-2 — source (effective 1 October 2026, Decree No. 36736; checked 28 October 2026). Forms, amount collected on cancellation.
- Korean law database — Framework Act on Local Taxes Art. 24 and its Decree Art. 43(2) — Act (effective 2 October 2026, Act No. 22017) · Decree (effective 2 October 2026, Decree No. 36728; checked 28 October 2026). Deadline extension; rate follows National Tax Basic Act Decree Art. 43-3(2).
- Korean law database — Enforcement Rule of the National Tax Basic Act Art. 19-3 — source (effective 20 March 2026, Ministry of Economy and Finance Ordinance No. 18; checked 28 October 2026). 31/1,000 a year.
- Not read. The forms and attachments (ministry ordinance), the ministry notice on details, security rules in the Framework Act on Local Taxes.
- What we added. The “worth noting” column and the Korean everyday gloss.
Where to check further
- The local tax office where the home is — forms, security, approval.
- Wetax — check for unpaid local tax.
Written on 28 October 2026. The content is from the source; the glosses are ours.
