Figures such as “20억 won market price” and “30억 won market price” are appearing in the news.
Naturally, you may wonder whether your home is affected.
But you cannot tell from those figures. The Comprehensive Real Estate Holding Tax is assessed using something else.
3-line summary
1. The Comprehensive Real Estate Holding Tax is determined not by market price, but by the officially assessed price.
2. The basic deduction for an owner-occupied single home rises from 12억 to 14억 원.
3. This is still a government reform proposal. It must pass the National Assembly to be finalized.
Check Before Calculating
The Comprehensive Real Estate Holding Tax is assessed based on the officially assessed price, not the market price. So what you need to do now is not calculate your tax, but check your home’s officially assessed price.
And one more thing: this is not yet finalized law.
The Comprehensive Real Estate Holding Tax Is Not Assessed on Market Price
The home value we know is the market price—the price at which homes are actually bought and sold.
But the standard for the Comprehensive Real Estate Holding Tax is the officially assessed price. This is a separate price set and announced annually by the government.
This reform proposal explains an officially assessed price of 14억 원 as a market price of about 20억 원, and an officially assessed price of 21억 원 as a market price of about 30억 원. This is a conversion at roughly 70% of market price.
However, this ratio is an approximate conversion used for explanation. The ratio between the actual officially assessed price and market price can vary depending on the home and the timing.
So applying the market-price standard cited in news reports directly to your home may lead to a mismatch. Check the Korea Real Estate Price Information System (realtyprice.kr) or Government24. You can look it up by entering only your address.
From “How Many Homes” to “Where You Live”
Two standards are changing.
First, from the number of homes to home value. Until now, tax rates differed depending on whether a taxpayer owned 1·2 homes or 3 homes or more.
Starting in 2028, the reform proposal consolidates tax rates into a single system ranging from 0.5% to 5%, regardless of the number of homes owned.
Second, from ownership to residence. Until now, holding a home for a long time qualified taxpayers for a tax credit.
The reform proposal changes this “ownership” credit into a “residence” credit. In other words, it would treat homes that are merely held differently from homes where the owner actually lives.
Looking Only at the Deduction Tells Only Half the Story
Even as the basic deduction rises, other elements rise with it.
According to media reports, the fair market value ratio will rise from the current 60% to 70% in 2027 for Seoul households owning 1 home and for households outside Seoul owning 1·2 homes. For owners of 3 homes or more, 70% will apply in 2027, followed by 80% in 2028.
The cap on the tax burden will also rise from 150% to 200% of the previous year’s property-holding tax.
In other words, even if deductions increase, the share reflected in the tax base and the tax rates move together, so the result may differ for each home.
Owner-Occupied Single Homes · Non-Owner-Occupied Single Homes · Multiple-Home Owners
Looking only at the basic-deduction standard, the categories break down as follows.
| Category | Basic deduction | Direction |
|---|---|---|
| Owner-occupied single home | Officially assessed price 12억 → 14억 원 | Eased |
| Non-owner-occupied single home | Officially assessed price 12억 → 9억 원 | Tightened |
| Multiple-home owner | Reduced deduction | Tightened |
The government explained that the direction is to reduce the burden on owner-occupiers of a single home, while reducing benefits for homes where people do not live and for owners of multiple homes.
How Will It Change by Price Range?
These are based on the government’s explanation. Please keep in mind that market prices are approximate conversion values.
An owner-occupied single home for a 1-person household with a market price of 20억 원 or less may be excluded from taxation. This is because the basic deduction rises to an officially assessed price of 14억 원.
For owner-occupied single homes in the 20억 원 to 30억 원 market-price range, the government’s explanation indicates a structure in which the tax amount decreases. The 30억 원 to 40억 원 range is said to have been designed to minimize changes.
Taxation becomes stricter above the 40억 원 to 50억 원 range.
However, the actual tax amount varies depending on the officially assessed price, age, length of residence, and whether deductions apply. Results may not be the same even within the same price range.
In What Cases Does “Up to 5 Times” Apply?
This is a phrase that frequently appears in media reports. It does not apply to all high-priced homes.
According to reports, for 1-household, 1-home owners with an officially assessed price of 35억 원 (market price of about 50억 원) or more, the amount is estimated to rise by about 2 times if owner-occupied, and about 5 times if not owner-occupied. This calculation assumes a particular price, residence status, and ownership form.
The same reports said that the households facing higher taxes total about 16만 8천 households with an officially assessed price above 21억 원 (market price of about 30억 원), representing the top 1.1% nationwide and the top 5.8% in Seoul. The approximately 3만 households subject to the maximum 5-fold increase account for 0.2% nationwide and 1.1% in Seoul.
The reports said the government expects tax revenue to increase by about 8천억 원 in 2027 and by about 9조 3천억 원 over the 5 years from 2027 through 2031.
Implementation Schedule — From 2027 Through 2029
The Comprehensive Real Estate Holding Tax will be implemented in stages beginning in 2027 and completed in 2028.
In 2027, the tax rate for the 6억 원 to 12억 원 tax-base bracket rises from 1.0% to 1.3%, and a new tax-credit limit of 800만 원 will be introduced. In 2028, tax rates will be consolidated into a range of 0.5% to 5%, and the tax-credit limit will become 600만 원.
Capital gains tax will be deferred for 1 year in 2027, then applied starting in 2028.
When You Sell, the Focus Is Also on “Residence,” Not “Ownership”
The long-term holding special deduction will be renamed the long-term residence income deduction. Here, too, the focus shifts from ownership to residence.
Owner-occupiers of a single home will retain the maximum deduction rate of 80%. However, a cap will be introduced on the deduction amount, which previously had no limit. According to media reports, caps of 20억 원 in 2028 and 10억 원 in 2029 are scheduled to apply in sequence.
There are also increases. The basic capital-gains deduction for 1-household, 1-home owners who have lived in the home for 10 years or more expands from 250만 원 per year to 2,500만 원 per year. If a person aged 65 or older sells a home in the Seoul metropolitan area and relocates outside the metropolitan area, they can receive a capital-gains-tax reduction of up to 50%, capped at 5억 원. Official materials need to be checked for the sale-price caps and residence-period requirements for both items.
The additional capital-gains-tax burden for multiple-home owners will be temporarily eased for 2 years and will return to the original tax rates starting in 2029.
What to Check Now
First, your home’s officially assessed price. You can look it up through the Korea Real Estate Price Information System or Government24. Without this figure, any article may have nothing to do with you.
Second, whether you qualify as a 1-household, 1-home owner. The standard is the household, not the individual. You must also review homes held in the names of family members.
Third, whether the home is actually owner-occupied. This is a standard that has become newly important in this reform.
Fourth, the periods of ownership and residence. Tax-credit rates differ based on these.
This Is Not Yet Law
In one sentence, this reform proposal shifts the standard from “how many homes” to “how much they are worth and whether you actually live in them.”
Deductions increase for owner-occupied single homes, while deductions decrease for homes where people do not live and for multiple homes. However, because the fair market value ratio and tax rates rise together, the outcome may differ by home.
And this is a government reform proposal announced on 2026년 8월 3일. It must go through National Assembly deliberations to be finalized, so it is difficult to view the current figures as becoming law unchanged.
So what you should do now is not calculate, but verify. Start by checking the officially assessed price and residence conditions.
References
- Korea Policy Briefing Owner-occupied single homes up to a market price of 20억 원 excluded from Comprehensive Real Estate Holding Tax
- Korea Economic Daily A Comprehensive Real Estate Holding Tax bill that was 450만원 becomes 1970만원…They ultimately pulled out the “last resort”
The direction of the system and deduction standards were based on government announcement materials, while the fair market value ratio, tax-rate brackets, household estimates, and individual-case calculations were based on media reports.
This article is an informational summary of the system and is not tax advice. Individual tax amounts vary according to officially assessed prices and personal circumstances, so specific calculations require confirmation from the National Tax Service or a tax professional.