Acquisition tax on a gifted home is not set by the official price — market value since 2023
When parents gift an apartment, another bill follows the gift tax: acquisition tax. At ₩600M it is ₩22.8M, yet the neighbor paid ₩74.4M on the same apartment. The ₩51.6M gap was how many homes the parents owned. Since 2023 gift acquisition tax is assessed on the recognized market value rather than the official price; in a regulated area with an official price of ₩300M or more the 3.5% becomes a 12% heavy rate; and a one-home parent gifting to a spouse or lineal relative is exempt from the heavy rate.
Conditions used in the calculation
- Case
- recognized market value ₩600M · official price ₩400M · apartment 85㎡ or less · parent → child
- Step ①
- tax base: recognized market value (comparable sale, appraisal) from 1 January 2023 · official price if none · inheritance still on the official price
- Step ②
- heavy rate: regulated area · official price ₩300M or more → 12% + 0.4% local education tax · tested on the official price · charged on the market value
- Step ③
- exception: a one-home household gifting that home to a spouse or lineal relative → no heavy rate · house count by household
- Rates
- gift 3.5% + 0.3% local education tax · inheritance 2.8% · over 85㎡ rural special tax 0.2%
- Filing and payment
- acquisition tax 60 days · gift tax 3 months (acquisition tax first)
Results
- ₩600M · non-regulated or one-home exception
- 3.5% + 0.3% = ₩22.8M · effective 3.8%
- ₩600M · official ₩400M · regulated heavy rate
- ₩600M × 12.4% = ₩74.4M · the heavy rate costs ₩51.6M
- Old method on the ₩400M official price
- ₩15.2M (over ₩7M short at settlement)
- How ₩22.8M is built
- ₩21M + ₩1.8M
- Over 85㎡
- rural special tax 0.2% · ₩1.2M on ₩600M
- Inheritance acquisition tax (official ₩400M)
- 2.8% ₩11.2M + ₩640,000 local education tax = ₩11.84M · ₩10.96M less than the ₩22.8M gift
- Cost of checking
- official price portal · Ministry of Land notice (free) · five minutes that change ₩51.6M
At a glance
Standard gift ₩22.8M, regulated heavy rate ₩74.4M, inheritance on a ₩400M official price ₩11.84M.
- Gift · standard or one-home exception (3.5% + 0.3%)₩22.8M
- Gift · regulated heavy rate (12% + 0.4%)₩74.4M
- Inheritance · official ₩400M (2.8% + 0.16%)₩11.84M
Why it works this way
Your parents gifted you an apartment. You computed and paid the gift tax, and two months later the district office sends one more bill: acquisition tax. On a ₩600M apartment it is ₩22.8M, yet the neighbor received the same apartment the same day and paid ₩74.4M. A ₩51.6M gap, and the difference was how many homes the parents owned. Acquisition tax on a gifted home is not set by the official price. Since 2023 it is assessed on market value, and the parents' house count and the home's area set the rate. Most people count only the gift tax, forget the acquisition tax, and are surprised 60 days later, short at settlement without knowing what they missed. Inheritance and gift acquisition taxes are often assumed equal, but both the rate and the base differ. Put gift tax and acquisition tax on one sheet before the gift, and since 60 days is shorter than three months, acquisition tax comes first.
Local Tax Act Article 10-2 (effective 2023-01-01) · Article 11(1)2 · Article 151.
- Beforegift tax base was the official price · below market, so the tax was small · ₩15.2M on a ₩400M official price
- From 1 January 2023recognized market value (comparable sale · appraisal) · ₩600M → ₩21M + ₩1.8M = ₩22.8M · effective 3.8%
- Inheritance is the exceptionstill the official price
Gift tax on market value and acquisition tax on market value, separately, twice. Not knowing leaves you over ₩7M short at settlement. Without a recognized market value it reverts to the official price, which can come out low for rarely traded detached houses, so whether to get an appraisal changes the tax.
Step ② The heavy rate is where the neighbor parted. In a regulated area with an official price of ₩300M or more it is 12% plus 0.4% local education tax. The test uses the ₩300M official price; the tax is charged on the recognized market value. At ₩600M market, ₩400M official, regulated: ₩600M × 12.4% = ₩74.4M, against ₩22.8M without the heavy rate, so ₩51.6M is its price. Outside regulated areas it is 3.5% regardless of official price, and even in a regulated area under ₩300M official it is 3.5%. Not knowing adds ₩51.6M on top of the gift tax. Before the gift, check the official price on the public price portal and the regulated-area status in the Ministry of Land notice: free, five minutes, and those five minutes change ₩51.6M.
The proviso in Local Tax Act Article 13-2(2).
- Rulea one-home household gifting that home to a spouse, lineal ascendant or descendant is exempt from the heavy rate. A parent's single home going to a child is the most common case
- Same ₩600M regulated apartmentif the parent owns one home, 3.5% · ₩22.8M. The two families in the opening parted on one home vs two
- Cautionover 85㎡ adds 0.2% rural special tax · ₩1.2M on ₩600M · the count is by household, so a co-resident sibling's home counts
Not knowing means delaying or settling on the assumption of an exception. To avoid ₩51.6M after trusting the exception, check every household member's name before the gift.
Compared with inheritance, acquisition tax alone favors inheritance. Inheritance acquisition tax is 2.8% and the base is still the official price, so ₩400M official gives ₩11.2M plus ₩640,000 local education tax, ₩11.84M, which is ₩10.96M less than the ₩22.8M gift. But that calculation leaves out the ten-year add-back and the fixed value; acquisition tax is only one line. The pre-gift sheet is three lines: ① recognized market value and gift tax, ② official price and area, ③ the parents' house count. With those three, gift acquisition tax preparation is done. File and pay within 60 days of receipt; the 60-day acquisition tax comes before the three-month gift tax.
All three steps are passed: recognized market value, 12% in regulated areas at ₩300M or more, and the exception for a one-home parent. The same ₩600M split into ₩22.8M and ₩74.4M on the parents' house count. Estimating on the official price leaves you over ₩7M short, missing the heavy rate costs ₩51.6M, and passing 60 days brings penalties. Two things to do now: put the recognized market value, official price and regulated-area status on one line, and confirm the exception from the giving parent's house count. Check the scope of recognized market value and regulated-area status with the district tax office or a tax adviser.
The legal basis
Drawn from government announcements and the statutes themselves as primary sources, covering only the relevant part.
Local Tax Act Article 10-2 (Tax base for gratuitous acquisition)
In force Effective 2023-01-01 (checked 2026-09-05)
The tax base for gifts and other gratuitous acquisitions is the recognized market value at acquisition; where none exists, the standard market price (official price). Inheritance uses the standard market price.
What this means
Since 2023 the base for gift acquisition tax moved from official price to market value. Inheritance stays on the official price.
Local Tax Act Article 11(1) · Article 151 (Gratuitous acquisition rates · Local education tax)
In force Current (checked 2026-09-05)
Inheritance 2.8%, gift 3.5%. Local education tax is (rate − 2%) × 20% → 0.3% for gifts, 0.16% for inheritance, 0.4% under heavy rates.
What this means
Effective 3.8% for gifts, 2.96% for inheritance. On the same official price, inheritance is cheaper on acquisition tax alone.
Local Tax Act Article 13-2(2) (Heavy rate on gifts · Exception)
In force Current (checked 2026-09-05)
Gratuitous acquisition of a home in a regulated area with a standard market price of ₩300M or more: 12%. Except where a one-home household gifts its home to a spouse or lineal relative.
What this means
Tested on the ₩300M official price, charged on market value. The giving parent's house count decides the exception.
Local Tax Act Article 20(1) · Rural Special Tax Act Article 5
In force Current (checked 2026-09-05)
File and pay within 60 days of acquisition. Rural special tax of 0.2% on acquisition tax for homes over 85㎡ exclusive area.
What this means
The 60-day acquisition tax comes before the three-month gift tax. Larger homes carry an extra 0.2%.
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 Gifted Property Acquisition Tax
Frequently asked
I paid gift tax. Do I pay acquisition tax too?
Yes. Gift tax is national and acquisition tax local; they are separate. Both use market value, and acquisition tax is due within 60 days of receipt, before the three-month gift tax deadline.
What if there is no recognized market value?
It reverts to the official price. Rarely traded detached houses may have no recognized market value, and whether to get an appraisal changes the tax.
Regulated area but the official price is ₩200M. Heavy rate?
No. The test is an official price of ₩300M or more, so under ₩300M it is 3.5% even in a regulated area. The tax is charged on the recognized market value.
No heavy rate if the parents own only one home?
A one-home household gifting that home to a spouse or lineal relative is exempt. But the count is by household, so a co-resident sibling's home counts.
Is acquisition tax cheaper by inheritance?
On acquisition tax alone, yes: inheritance is 2.8% on the official price, ₩11.84M on ₩400M. But choosing between gift and inheritance must also weigh the ten-year add-back and the fixed value.
What if the home is over 85㎡?
Rural special tax of 0.2% is added, ₩1.2M on ₩600M.
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.