The same ₩500M, taxed at ₩5.5M or ₩23M
Whether it counts as a home moves the acquisition tax more than fourfold. On a ₩500M purchase the gap is ₩17.5M.
Conditions used in the video
- Purchase price
- ₩500M
- Floor area
- 84㎡ (85㎡ or less)
- Homes owned
- one
- Type of acquisition
- purchase for payment
Results
- Home · 85㎡ or less (1.1%)
- ₩5.5M
- Home · over 85㎡ (1.3%)
- ₩6.5M
- Commercial (4.6%)
- ₩23M
- Difference
- ₩17.5M
- Multiple
- 4.18×
At a glance
The same purchase price splits more than threefold by use and floor area.
- Home · 85㎡ or less (1.1%)₩5.5M
- Home · over 85㎡ (1.3%)₩6.5M
- Commercial (4.6%)₩23M
4.18× the home rate
It is not one rate. Local education tax and rural special tax sit on top of the acquisition tax.
- Home acquisition tax1.0%
- └ local education tax0.1%
- └ rural special tax (85㎡ or less)exempt
- Commercial acquisition tax4.0%
- └ local education tax0.4%
- └ rural special tax0.2%
Why it works this way
People often think of acquisition tax as a single rate. In practice it varies by use, floor area and how many homes you own. Pay the same ₩500M and the tax differs more than fourfold depending on what you bought.
First, acquisition tax is not one item. Local education tax attaches to the acquisition tax itself, and in some cases rural special tax attaches too. The 1.1% or 4.6% people quote is the sum of all three.
Three items stack to 1.1%.
- Acquisition tax 1.0%₩5M
- Local education tax 0.1%₩500,000
- Rural special taxexempt
- Total 1.1%₩5.5M
At 85㎡ or less the home counts as modest housing and rural special tax is not charged. That one empty box alone saves ₩1M.
The same structure, with every item far larger.
- Acquisition tax 4.0%₩20M
- Local education tax 0.4%₩2M
- Rural special tax 0.2%₩1M
- Total 4.6%₩23M
The 1% to 3% for homes is a concession against this 4%. In other words 4% is the rule and housing is the exception.
The rate on homes also varies with price. Up to ₩600M it is 1% and above ₩900M it is 3%. In between, a statutory formula applies: multiply the price by 2, divide by ₩300M and subtract 3. A ₩750M home lands on exactly 2%.
Floor area matters too. Above 85㎡, rural special tax of 0.2% attaches and the total becomes 1.3%. On ₩500M that turns ₩5.5M into ₩6.5M. A ₩1M difference sounds small, but on a ₩1.2bn home it is ₩2.4M. For a multi-unit house, the test uses the floor area per household.
Multi-home owners and companies face far more. The heavy rates run to 8% or 12% and rural special tax is fixed at 0.4%. Whether the heavy rates apply turns on the number of homes, the region and the type of acquisition, so it cannot be stated flatly here. If it might apply to you, enter the higher rate directly in the calculator.
The reason to know this before signing is simple: acquisition tax cannot be adjusted once the balance is paid. If your funding plan is missing ₩17.5M, you will be finding that money in a hurry.
The legal basis
Drawn from government announcements and the statutes themselves as primary sources, covering only the relevant part.
지방세법 제11조 (rates on acquiring property)
In force in force
Purchase of a home for payment is taxed at 1% up to ₩600M, on a formula of (price × 2 ÷ ₩300M − 3) × 1/100 between ₩600M and ₩900M, and 3% above ₩900M. The standard rate on non-agricultural property acquired for payment is 4%.
What this means
The 1% to 3% for homes is a concession against the 4%. Since 4% is the rule and housing the exception, anything that is not a home goes straight to 4%.
지방세법 제151조 (local education tax)
In force in force
For a home purchased for payment, it is computed as 20% of half the applicable acquisition tax rate, which works out at one-tenth of that rate.
What this means
A 1% acquisition tax carries 0.1% local education tax, and 3% carries 0.3%. When the acquisition tax rises, this rises with it.
농어촌특별세법 제4조제11호 · 시행령 제4조제5항
In force in force
Modest housing at or below the national housing size (85㎡ of floor area) is exempt from rural special tax. For a multi-unit house the test uses the floor area per household.
What this means
85㎡ is the line where the tax splits. A single square metre decides whether 0.2% of the purchase price attaches.
Run it on your own numbers
The calculator opens with these conditions already filled in. Change the figures and your own case comes straight out.
Open the Commercial Property Acquisition Tax
Frequently asked
Is an officetel a home or commercial property?
At the acquisition stage it follows the use recorded on the building register. An officetel registered as a business facility generally takes 4.6%, not the housing rate. The recorded use can differ from actual use, so check the register before signing.
Is 85㎡ measured on the supply area?
On the exclusive floor area, which differs from the supply area quoted in sales material (exclusive plus shared residential). What is marketed as a 34-pyeong unit is around 84㎡ exclusive, which is close to the line. Check the figure on the register or the building register.
What applies between ₩600M and ₩900M?
A statutory formula: multiply the price by 2, divide by ₩300M, subtract 3. ₩750M gives exactly 2%. Enter the price in the calculator and it applies automatically.
Does the calculator handle the heavy multi-home rates?
No, because the test turns on the number of homes, the region and the type of acquisition. If it might apply to you, enter 8 or 12 directly in the rate field, and confirm the position with a tax professional.
What else is payable besides acquisition tax?
Agent commission and the scrivener's registration fee. The calculator adds both to show the total you actually need to prepare.
Results are estimates based on the inputs and on the rules as at the stated date. They may differ from a lender's actual assessment, and the rules change often. Take professional advice before any decision that matters.