The plan to lower the comprehensive real estate tax threshold to ₩900M is gone — ₩1.2B stays for one-home owners
The proposal to start comprehensive real estate tax at ₩900M disappeared at the 1 September 2026 cabinet meeting. The 3 August draft would have cut the deduction for a non-occupied single home to ₩900M, but the 1 September final version restored ₩1.2B. A single home with an official price of ₩1.2B pays ₩0; at ₩1.3B, the ₩100M above ₩1.2B times the 60% fair market value ratio gives a ₩60M tax base and a total of ₩184,321.
Conditions used in the video
- One-home basic deduction
- ₩1.2B (current)
- Fair market value ratio
- 60%
- Rate
- 0.5% on a tax base up to ₩300M
- Burden cap
- 150%
- Example
- held 5 years · age 45 · 20% holding credit
- Proposals
- ₩900M cut withdrawn on 1 September · ₩1.4B raise before the Assembly
Results
- Official price ₩1.2B
- tax ₩0
- Official price ₩1.3B
- total ₩184,321 (incl. rural special tax)
- Tax base at ₩1.3B
- (₩1.3B − ₩1.2B) × 60% = ₩60M
- 3 August draft
- non-occupied single home ₩900M → withdrawn 1 September
- ₩1.4B proposal
- before the Assembly as of 2026-09-05
- Tax credits
- holding period + age, up to 80%
At a glance
Zero up to ₩1.2B; ₩184,321 in total at ₩1.3B.
- ₩1.2B₩0
- ₩1.3B₩184,321
Why it works this way
You may have heard that comprehensive real estate tax would start at ₩900M. That plan disappeared at the 1 September 2026 cabinet meeting. The basic deduction for a single home is ₩1.2B.
Two versions of the government's tax reform package.
- 3 August draftcut the deduction for a non-occupied single home to ₩900M
- 1 September finalrestored ₩1.2B
- Remaining proposalraise the owner-occupied single-home deduction to ₩1.4B (before the Assembly)
A single home with an official price of ₩1.2B pays ₩0. At ₩1.3B, the ₩100M above ₩1.2B times the 60% fair market value ratio gives a ₩60M tax base, and with rural special tax the total is ₩184,321.
Comprehensive Real Estate Tax Act Articles 8 and 9 · Enforcement Decree Article 2-4 · engine figures.
- ₩1.3B − ₩1.2B₩100M
- × 60%tax base ₩60M
- 0.5% + rural special taxtotal ₩184,321
As of 5 September 2026 the basic deduction is ₩1.2B and the burden cap 150%. Tax credits for holding period and age reach up to 80%.
The legal basis
Drawn from government announcements and the statutes themselves as primary sources, covering only the relevant part.
Comprehensive Real Estate Tax Act Article 8(1) · Enforcement Decree Article 2-4 (Tax base)
In force Current (checked 2026-09-05)
The housing tax base is the total official price minus ₩900M (₩1.2B for a one-home household), multiplied by the fair market value ratio (60%).
What this means
₩1.2B is the single-home threshold, and 60% of what lies above is the tax base. The ₩900M plan was withdrawn and the ₩1.4B plan is before the Assembly.
Comprehensive Real Estate Tax Act Articles 9 and 10 (Rates · Burden cap)
In force Current (checked 2026-09-05)
Progressive from 0.5% on a tax base up to ₩300M. Combined credits for age and long holding up to 80%. Burden cap 150%.
What this means
The 0.5% rate is why a ₩1.3B home pays ₩184,321. Age and holding period cut it further from there.
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 Comprehensive Real Estate Tax
Frequently asked
Is the ₩900M threshold completely gone?
The 3 August draft to cut the non-occupied single-home deduction to ₩900M was withdrawn in the 1 September cabinet version. As of 5 September 2026 the basic deduction is ₩1.2B.
What about the rise to ₩1.4B?
The proposal to raise the owner-occupied single-home deduction to ₩1.4B is before the National Assembly. Until it passes, it is ₩1.2B.
Is the tax on a ₩1.3B home really only about ₩180,000?
With 5 years' holding and age 45, the 20% holding-period credit applies, and the total including rural special tax is ₩184,321. Without the credit it would be ₩230,401, and credits of up to 80% for holding period and age reduce it further.
Is the 60% fair market value ratio fixed?
It is set by the Enforcement Decree and can change. As of 5 September 2026 it is 60%.
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.