14 Billion Won Deduction for Owner-Occupied 1-Home Comprehensive Real Estate Tax: Not Yet Applicable to 2026 Tax Bills

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The KRW 1,400,000,000 basic comprehensive real estate tax deduction for owner-occupied 1-home properties does not immediately apply to 2026 tax bills.

If the government proposal announced on August 3 passes the National Assembly, it is expected to be implemented in stages starting with the 2027 tax year. The proposal would raise the taxable threshold for 1-household, 1-home owners to an officially assessed property value of KRW 1,400,000,000. For homes exceeding that threshold, the proposed system would apply basic deductions of KRW 1,400,000,000 for owner-occupied properties and KRW 900,000,000 for non-owner-occupied properties.

Importantly, KRW 1,400,000,000 is not an amount deducted directly from your tax bill like a cash credit. It is a basic deduction subtracted from the home's officially assessed value before calculating comprehensive real estate tax. It is not based on the actual transaction price or the seller's asking price.

Here is a simplified comparison for a 1-home property with an officially assessed value of KRW 1,500,000,000.

Owner-occupied

KRW 1,500,000,000 − KRW 1,400,000,000 = KRW 100,000,000

Non-owner-occupied

KRW 1,500,000,000 − KRW 900,000,000 = KRW 600,000,000

The amounts remaining after the deductions differ by KRW 500,000,000.

This is the author's calculation comparing only the basic deductions. The actual tax base and tax payable are calculated by additionally accounting for the fair market value ratio, applicable tax rates, and tax credits.

Furthermore, increasing the deduction to KRW 1,400,000,000 does not necessarily mean that every owner-occupier of a 1-home property will pay less tax. Owners of high-value properties could face higher tax burdens due to adjustments to the fair market value ratio and tax rates.

Here are four key points to save for reference.

✓ The proposed 14 billion and 9 billion won changes do not apply to 2026 comprehensive real estate tax bills.

✓ If the government proposal passes, phased implementation is expected to begin with the 2027 tax year.

✓ 14 billion and 9 billion won are basic deductions based on officially assessed property values, not actual transaction prices.

✓ The final amended law and enforcement decree must be checked to determine owner-occupancy eligibility and the required supporting documentation.

Comprehensive real estate tax is based on property ownership status as of June 1 each year and is paid in December. If the government proposal is enacted as planned, 2027-06-01 is likely to be the first major date to check.

Special rules may apply to jointly owned 1-home properties, temporary ownership of 2 homes, inherited properties, and other situations. Therefore, the same figures should not be applied automatically to every case.

Start by checking your home's officially assessed apartment value rather than its actual transaction price. Then compare your tax position again once the amended legislation has passed and the final owner-occupancy eligibility criteria have been announced.

이 포스팅은 쿠팡 파트너스 활동의 일환으로, 이에 따른 일정액의 수수료를 제공받습니다.