Korea Property Acquisition Tax 2026: How Much on a ₩300M Apartment
A practical guide to Korean property acquisition tax — real rates for 1st, 2nd, and 3rd+ homes, surcharges for regulated zones, extra levies, a worked example on a ₩300M apartment, and the first-time buyer discount.
A friend of mine signed a contract on a ₩300M apartment last spring, budgeted ₩3M for acquisition tax, and then the actual bill came back at over ₩3.3M once local education tax and rural development tax were stacked on top. She had to scramble for the difference three days before the payment deadline. The base rate looked simple enough — 1% — but nobody warned her about the add-ons.
Acquisition tax is one of those costs that surprises almost every first-time buyer. For a single-home purchase the headline rate is modest, but once you own two or three properties — or the apartment sits inside a regulated zone — the rate can jump to 8% or even 12%. This guide breaks down who pays what, how the surcharges layer on, and exactly how much you would owe on a ₩300M apartment depending on your situation.
What you'll learn
- ✅How acquisition tax rates differ by number of homes and regulated-zone status
- ✅The extra levies most buyers forget: local education tax and rural development tax
- ✅A full worked example comparing a 1st-home buyer vs. a multi-home buyer on a ₩300M apartment
What Is Acquisition Tax?
Acquisition tax is a local government tax you pay whenever you acquire real estate in Korea. 'Acquire' means the moment ownership transfers — usually the registration date at the court. The tax base is the declared purchase price, and the rate depends on three things: the price of the home, how many homes you already own, and whether the property is in a government-designated regulated area.
What most people call 'acquisition tax' is actually three separate levies bundled together: the base acquisition tax itself, local education tax, and special rural development tax. You pay them all in a single bill, so the effective rate is always higher than the headline number.
2026 Acquisition Tax Rates by Housing Count
For a first home, the base rate scales with price. Under ₩600M it is 1%. Between ₩600M and ₩900M there is a graduated formula that lands between 1% and 3%. Above ₩900M the rate is a flat 3%. Second and third homes are where the real pain starts.
| Scenario | Base rate | With education + rural tax |
|---|---|---|
| 1st home, ≤₩600M | 1% | ~1.1% |
| 1st home, ₩600M–₩900M | 1–3% (graduated) | ~1.1–3.5% |
| 1st home, >₩900M | 3% | ~3.5% |
| 2nd home, non-regulated area | Same as 1st home | Same as 1st home |
| 2nd home, regulated area | 8% | ~8.4% |
| 3rd+ home, non-regulated area | 8% | ~8.4% |
| 3rd+ home, regulated area | 12% | ~13.4% |
The jump from 1% to 8% is not a typo. A second home in a regulated zone costs eight times as much in acquisition tax. On a ₩300M apartment, that is the difference between ₩3M and ₩24M.
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Acquisition Tax Calculator →The Surcharges Everyone Forgets
On top of the base acquisition tax, two additional levies apply automatically.
- Local education tax: 10% of the base acquisition tax amount. If your base tax is ₩3M, education tax adds ₩300K.
- Special rural development tax: 0.2% of the purchase price, but only for units larger than 85 square meters. On a ₩300M apartment over 85 sqm, that is ₩600K.
For a compact apartment under 85 sqm, you skip the rural development tax entirely. This is one reason smaller units are popular with first-time buyers — the total tax bill is noticeably lower.
Worked Example: ₩300M Apartment
Let me run the numbers side by side for a first-home buyer and a multi-home buyer purchasing the same ₩300M apartment (under 85 sqm, non-regulated area).
1st-home buyer: ₩300M apartment (under 85 sqm)
3rd-home buyer (non-regulated area): same ₩300M apartment
Same apartment, same price, but the multi-home buyer pays eight times as much. That ₩26.4M is due within 60 days of registration. For a regulated-area third home at 12%, the base tax alone would be ₩36M.
First-Time Buyer Discount
If you have never owned a home in Korea and the purchase price is ₩1.2 billion or less, the government knocks up to ₩2M off your acquisition tax. There is no income cap — this applies to everyone buying their first home. On a ₩300M apartment, your ₩3.3M bill drops to ₩1.3M. That is a significant saving.
To claim the discount, you file the reduction application at the same time you pay acquisition tax through Wetax or your district office. The system checks your ownership history automatically. If you sell within five years or register a second home during that period, the discount is clawed back with interest.
Payment Deadline and How to Pay
You have exactly 60 days from the date of ownership transfer registration to pay. Most people pay through Wetax, the online local tax portal. You can also walk into your district office with the bill. Credit card and bank transfer both work. If you are using a mortgage, the bank often handles the payment as part of the closing process.
After 60 days, a 3% surcharge kicks in immediately. On top of that, you accrue 0.025% per day in late interest. On a ₩3.3M bill, missing the deadline by three months costs you roughly ₩170K in penalties. On a ₩26.4M multi-home bill, the same delay costs over ₩1.3M.
First-time buyer: claim the ₩2M discount before you pay
The discount does not apply automatically. You need to check the first-time buyer box when filing on Wetax or submit the reduction form at the district office. If you pay first and apply later, the refund process takes months. Do it at the same time and save yourself the headache.
Miss the 60-day window and penalties start immediately
The 60-day clock starts on the registration date, not the contract date and not the move-in date. If your registration happens in early January and you assume you have until March, count the days carefully. A 3% surcharge plus daily interest adds up fast, especially on multi-home purchases where the base amount is already in the tens of millions.
Frequently Asked Questions
Does the regulated-area surcharge apply everywhere in Seoul?
Not all of Seoul is a regulated area. The government updates the list periodically, and some districts have been removed from the designation. Before you sign a contract, check the latest 조정대상지역 list on the Ministry of Land website. The designation can change between the time you sign and the time you register, so verify close to registration day.
I am buying a second home but my first is in a rural area worth less than ₩100M. Do I still get hit with the 8% rate?
The surcharge is based on the number of homes you own nationwide, regardless of value. Even a tiny rural house counts as your first home. However, some exceptions exist for inherited properties or properties in specific rural zones designated by local government. Check with your district tax office for your specific situation.
Can I split the acquisition tax payment or pay in installments?
Acquisition tax is due in a single lump sum within 60 days. There is no official installment plan. However, if you pay by credit card, you can use your card company's installment feature. Some buyers use this to spread the hit over 3 to 12 months, though you will pay credit card interest.
What happens to the first-time buyer discount if I sell within five years?
The discount gets clawed back. If you sell or acquire a second home within five years of claiming the reduction, the tax office will send you a bill for the original discount amount plus interest. The intent is to reward people who actually live in their first home, not investors using the discount to flip.
Is acquisition tax deductible from my income tax?
No, acquisition tax is not income-tax deductible. It becomes part of your acquisition cost for the property, which matters later when you sell. A higher acquisition cost means a lower capital gains tax base, so keep the receipt. It helps you years down the road even though it does not reduce this year's income tax.
Do I pay acquisition tax on a gifted or inherited property?
Yes. Gifts and inheritances are both considered 'acquisitions' and trigger acquisition tax. The tax base for a gift is the appraised value, not the purchase price. Inherited properties follow a similar rule. The rates may differ slightly from standard purchase rates, so check the current schedule before budgeting.
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Yuri
Real estate & finance editor. Breaking down calculations for homebuying and wealth management.
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