THE H Firstier IPARK, one of the largest reconstruction complexes in Seoul's Gangnam area. The market price for the standard national layout (exclusive 84㎡) is 3.5–3.9 billion won, and units 90㎡ or larger are in the 4 billion won range. Koo Yun-cheol, the deputy prime minister for economy, and Lee Eog-weon, the chairman of the Financial Services Commission (FSC), said in their asset disclosures that each holds one unit of 113㎡ and 97㎡, respectively. Starting next year, people who own one unit of this apartment that is at least the standard national layout will see their comprehensive real estate tax burden increase regardless of whether they live there.
The government said in the "2026 tax reform plan" that it will revise the comprehensive real estate tax law to uniformly raise the comprehensive real estate tax rates starting next year for dwellings with a tax base exceeding 600 million won (market price 3.2 billion won, official value 2.3 billion won). Alongside the rate hikes, it will also pursue ▲ raising the fair market value ratio (60%→70%) ▲ lifting the tax burden cap (150%→200%) ▲ setting a tax credit limit (6 million won). For owners of dwellings exceeding a market price of 3.2 billion won, a "quadruple tax burden mechanism" will be introduced.
◇ Narrowing the comprehensive real estate tax base and increasing the burden from dwellings priced at "3.2 billion won"
The comprehensive real estate tax is determined by subtracting the basic deduction (1-dwelling owners 1.4 billion won; others 900 million won) from the official price of a dwelling, then multiplying by the fair market value ratio (60%) and the progressive comprehensive real estate tax rate by tax base, and then applying the progressive deduction and age/holding tax credit. Currently, up to a tax base of 1.2 billion won, the rate is 0.5%–1% regardless of the number of dwellings, and above 1.2 billion won, the rates are 1.3%–2.7% for owners of 1 or 2 dwellings and 2%–5% for owners of 3 or more dwellings.
On the 3rd, the Ministry of Finance and Economy said, "To rationalize real estate taxation, we will normalize the comprehensive real estate tax and capital gains tax burdens on non-resident dwellings and dwellings above a certain value." The crux of this reform is to reduce the number of people subject to property taxes by increasing the basic deduction for one owner-occupied dwelling from 1.2 billion won to 1.4 billion won, while uniformly increasing the tax burden starting from dwellings with a tax base exceeding 600 million won.
If the government's revision to the comprehensive real estate tax law passes, starting next year, dwellings with an official value under 1.4 billion won (market price 2 billion won) will not owe the comprehensive real estate tax. The number of people subject to the tax after the reform is estimated at about 480,000 based on the 2025 apartment official values, fewer than last year's actual payers (540,000). For those who own one dwelling with a tax base of 600 million won or less and actually reside there, the basic deduction will expand and the tax rate will remain the same, reducing their tax burden.
In contrast, for dwellings with a tax base exceeding 600 million won, the comprehensive real estate tax rate will be raised uniformly starting next year. In the bracket over 600 million won up to 1.2 billion won, the rate will rise from 1% to 1.3%. The 1.3% rate is what previously applied to owners of dwellings over 1.2 billion won and up to 2.5 billion won. The number of people in this bracket is estimated at about 59,905, or 12.5% of expected comprehensive real estate taxpayers and 0.4% of all dwelling owners.
For dwellings with a tax base over 1.2 billion won (market price 4.5 billion won, official value 3.1 billion won), the comprehensive real estate tax rate will be raised starting next year, and from the year after next, the same rates as for multiple-dwelling owners will apply. This will also have the effect of naturally shifting the tax rate criteria from the number of dwellings to the dwelling value.
By tax base bracket, over 1.2 billion won and up to 2.5 billion won will rise from 1.3% this year to 1.5% next year and 2% the year after next. Over 2.5 billion won and up to 5 billion won will rise from 1.5% this year to 2% next year and 3% the year after next. Over 5 billion won and up to 9.4 billion won will jump from 2% this year to 2.7% next year and 4% the year after next. Over 9.4 billion won will rise from 2.7% this year to 3.5% next year and 5% the year after next.
Such ultra-high-priced dwelling owners number 23,402, accounting for 4.9% of expected comprehensive real estate taxpayers and 0.1% of all dwelling owners.
◇ Fair market value ratio 60%→70%... comprehensive real estate tax credit capped at up to 6 million won
The fair market value ratio, which affects the final comprehensive real estate tax amount, will be raised from 60% now to 70% next year. For those who own two dwellings, including one in a regulated area, and for owners of three dwellings, this ratio will further increase to 80% the year after next. The tax burden cap will also be lifted from 150% now to 200% next year. This means the year-over-year tax burden can increase by up to two times instead of 1.5 times.
In addition, the age-based tax credit will be maintained, but the holding tax credit will be phased into a residency tax credit. Currently, the holding tax credit is ▲ 20% for holding 5–10 years ▲ 40% for 10–15 years ▲ 50% for 15 years or more. Starting next year, the holding credit rates will be reduced to 10%, 20%, and 25%, respectively, and the original rates will be maintained only if the owner resides there. The year after next, the holding credit will be eliminated, leaving only the residency credit.
In addition, a new per-person cap will be introduced for the combined age and residency credits. It will be 8 million won next year and 6 million won the year after next.
Meanwhile, the government said the tax take will increase by 220 billion won over the next three years starting next year due to this comprehensive real estate tax reform. The individual dwelling portion is expected to rise by 120 billion won.