The tax credit under the comprehensive real estate tax applied to single ultra-expensive dwellings with a tax base exceeding 2 billion won reached the largest size in four years last year. As criticism grows that the current comprehensive real estate tax structure greatly reduces the tax burden on ultra-expensive dwellings, the government is pushing to overhaul the system to tax based on asset value held rather than the number of dwellings.
According to National Tax Service statistics on the 26th, the amount of 2025 individual comprehensive real estate tax credit applied to dwellings with a tax base over 2 billion won totaled 46.1 billion won. That was up about 153.2% (27.9 billion won) from 18.2 billion won last year. After declining since 2021, it jumped again last year. Both the increase and the growth rate were the largest since 2021.
Last year, there were 538,439 comprehensive real estate taxpayers, combining individuals and corporations. Among them, 8,399 had a tax base over 2 billion won, just 1.6% of the total, but some individuals who met criteria such as owning a single dwelling received 46.1 billion won in credits, or 22.2% of the total tax credit amount of 207.1 billion won. A total of 87.9% of the tax credit amount was concentrated in dwellings located in Seoul.
By contrast, the final tax due fell or saw little change. The average final comprehensive real estate tax due per person (individuals and corporations combined) among holders with a tax base over 2 billion won was 55.7 million won last year, down 16.81 million won (23.2%) from the previous year. Among those with a tax base of 2 billion won or less, the average final tax due was 1.59 million won, up just 10,000 won from the previous year.
This is seen as the effect of the current comprehensive real estate tax system being designed to be relatively favorable to single-dwelling owners. Single-dwelling owners receive a 1.2 billion won basic deduction, and long-term holders and seniors get a tax credit of up to 80%. By contrast, those owning two or more dwellings receive a 900 million won basic deduction, and higher rates apply.
Under the current comprehensive real estate tax system, single-dwelling owners receive a 1.2 billion won basic deduction, and long-term holders and seniors are offered a tax credit of up to 80%. By contrast, those owning two or more dwellings receive a 900 million won basic deduction, and higher rates apply. In fact, in the 3 billion–5 billion won tax-base bracket last year, the average final comprehensive real estate tax per person for owners of three or more dwellings was 41.94 million won higher than for single-dwelling owners. As the tax base grew, the tax burden gap widened between single-dwelling owners and multiple-dwelling owners.
Meanwhile, the government is said to be pursuing an overhaul of the comprehensive real estate tax, viewing this structure as reinforcing the preference for "one smart home." It is reportedly considering revising the system to tax based on asset value held instead of the number of dwellings and to scale back or abolish the long-term holding credit for single ultra-expensive dwellings. The government plans to announce its tax reform plan in early next month after holding a forum chaired by Prime Minister Han Seong-sook on the 27th.