Property Acquisition Tax Guide: Rates, Reductions, and Calculation Methods

When purchasing property in Korea, acquisition tax (취득세) is one of the largest upfront costs buyers must prepare for. Depending on the number of properties you own, the location, and your buyer status, the tax rate can range from 1% to 12% of the purchase price. Understanding these rates and available reductions can save you millions of won.

What Is Acquisition Tax?

Acquisition tax is a local tax levied when you acquire real estate, vehicles, or other specified assets. For housing, it consists of three components: the base acquisition tax (취득세), local education tax (지방교육세), and special rural development tax (농어촌특별세). Together, these make up the total tax burden on a property purchase.

2026 Tax Rates by Housing Count

The tax rate depends on how many homes you own and whether the property is in a regulated area (조정대상지역):

• 1st home (any area): 1% for ≤600M won, 1-3% for 600M-900M won (graduated), 3% for >900M won
• 2nd home in non-regulated area: Same as 1st home rates
• 2nd home in regulated area: 8%
• 3rd+ home in non-regulated area: 8%
• 3rd+ home in regulated area: 12%

Additional Taxes

• Local Education Tax (지방교육세): 10% of the base acquisition tax amount
• Special Rural Development Tax (농어촌특별세): 0.2% of purchase price, applies only to properties over 85㎡

First-Time Homebuyer Reduction

First-time homebuyers (생애최초 주택 취득) can receive a significant tax reduction. As of 2026, if you've never owned a home and purchase a property valued at 12억 won or less, you can receive an acquisition tax reduction of up to 2 million won. This applies regardless of income level, making it one of the most accessible tax benefits for new homeowners.

Calculation Example

Let's say you're buying your first home for 500 million won (85㎡ or less) in a non-regulated area:

• Base acquisition tax: 500,000,000 × 1% = 5,000,000 won
• Local education tax: 5,000,000 × 10% = 500,000 won
• Special rural tax: 0 won (85㎡ or less)
• First-time buyer reduction: -2,000,000 won
• Total: 5,000,000 + 500,000 - 2,000,000 = 3,500,000 won

When and How to Pay

Acquisition tax must be paid within 60 days of acquiring the property (the date of ownership transfer registration). Payment is made at your local district office (구청) or through the Wetax (위택스) online system. Late payment incurs a penalty of 3% plus an additional 0.025% per day.