Buying a home in Korea? The first tax you’ll face is the acquisition tax (취득세). But calculating it isn’t straightforward — depending on the property price, how many homes you own, and whether the area is a regulated zone, the rate can range from 1% to as high as 12%. This guide breaks down how to calculate your acquisition tax by price bracket and home count, plus the first-time buyer discount.
What Is Acquisition Tax?
Acquisition tax (취득세) is a local tax paid when you acquire property — real estate, vehicles, and other assets. When you purchase a home, you must report and pay within 60 days of the balance payment date to your local district office (시·군·구청). Missing the deadline results in late-payment surcharges (0.022% per day).
The total amount you actually pay combines acquisition tax + local education tax + rural special tax. When people say “acquisition tax,” they typically mean this combined total.
Single-Home Acquisition Tax by Price
For first-time or single-home buyers (including non-regulated areas), the rate depends on the purchase price.
| Purchase Price | Acquisition Tax | Local Education Tax | Rural Special Tax | Total |
|---|---|---|---|---|
| ≤ ₩600M | 1% | 0.1% | Exempt (≤85㎡) / 0.2% (>85㎡) | 1.1–1.3% |
| ₩600M – ₩900M | 1–3% (progressive) | 0.1–0.3% | Exempt (≤85㎡) / 0.2% (>85㎡) | 1.1–3.3% / 1.3–3.5% |
| > ₩900M | 3% | 0.3% | Exempt (≤85㎡) / 0.2% (>85㎡) | 3.3% / 3.5% |
※ Rural special tax for units > 85㎡ is calculated at 10% of the tax amount based on the standard rate (2%), resulting in a flat 0.2% regardless of the actual acquisition tax rate. Local education tax is 10% of the acquisition tax rate.
The ₩600M–₩900M bracket isn’t a flat 2% — it uses a progressive formula that gradually increases from 1% to 3%. The exact rate is calculated as:
Tax rate (%) = Purchase price (in 억원) × 2/3 − 3
For example, a ₩750M home larger than 85㎡: 7.5 × 2/3 − 3 = 2(%). That’s ₩15M in acquisition tax + ₩1.5M education tax + ₩1.5M rural tax = ₩18M total. If the unit is 85㎡ or smaller, the rural special tax is exempt, bringing the total to ₩16.5M.
The most important factor in calculating your acquisition tax is the purchase price. For purchases, the actual transaction price is used; for gifts, the assessed standard value applies.
Multiple-Home Acquisition Tax: Heavy Rates
Owning two or more homes triggers significantly higher rates. The difference between regulated and non-regulated areas is dramatic.
| Homes Owned | Regulated Area | Non-Regulated Area |
|---|---|---|
| 1 home | 1–3% | 1–3% |
| 2 homes | 8% | 1–3% |
| 3 homes | 12% | 8% |
| 4+ homes | 12% | 12% |
| Corporation | 12% | 12% |
Local education tax and rural special tax are added on top, making the actual burden even higher. For instance, becoming a 2-home owner in a regulated area means: 8% + 0.4% + 0.6% = 9% total.
Regulated areas (조정대상지역) are designated by the government to curb real estate speculation and change periodically. Check the current list at the Ministry of Land, Infrastructure and Transport (molit.go.kr).
Rural Low-Value Home Exception
Homes outside the Seoul metropolitan area (수도권) with an assessed value of ₩200M or less are excluded from the multi-home count (effective for acquisitions from January 2, 2025, raised from ₩100M). Within the Seoul metropolitan area (Seoul, Gyeonggi, Incheon), the threshold remains at ₩100M. Check whether your rural property qualifies for this exclusion.
Acquisition Tax Calculation Examples
Let’s walk through concrete scenarios to see how the numbers work.
Case 1: First-time buyer purchasing a ₩500M apartment
- Purchase price: ₩500M (under ₩600M)
- Acquisition tax: ₩500M × 1% = ₩5M
- Local education tax: ₩500M × 0.1% = ₩500K
- Rural special tax: Exempt (unit size ≤ 85㎡)
- Total: ₩5.5M
Case 2: 1-home owner buying a ₩800M home in a regulated area (becoming 2-home owner)
- Purchase price: ₩800M
- Acquisition tax: ₩800M × 8% = ₩64M
- Local education tax: ₩800M × 0.4% = ₩3.2M
- Rural special tax: ₩800M × 0.6% = ₩4.8M
- Total: ₩72M
For the same ₩800M property, a single-home buyer pays roughly ₩21M while a 2-home buyer in a regulated area pays ₩72M — more than 3 times the amount. Always calculate your tax liability before purchasing.
First-Time Buyer Acquisition Tax Discount
If you’re buying your very first home, you can receive a significant discount on your acquisition tax. If you’ve been saving diligently for your first home, make sure to claim this benefit.
| Requirement | Details |
|---|---|
| Eligibility | Neither you nor your spouse has ever owned a home |
| Property limit | Purchase price ≤ ₩1.2 billion |
| Discount cap | Up to ₩2M (₩3M in depopulation areas) |
| Residency requirement | Must begin residing within 3 months of acquisition + selling, gifting, or renting within 3 years triggers clawback |
| Deadline | Extended through end of 2028 (stricter “owner-occupied” requirement from 2026) |
Example: A first-time buyer purchasing a ₩400M apartment would normally owe ₩4.4M (₩4M tax + ₩400K education tax). With the ₩2M discount, you pay only ₩2.4M.
Apply for the discount when reporting your tax within 60 days of the balance payment date at your local district office. Check detailed conditions at Easy Law (easylaw.go.kr).
Temporary 2-Home Exception
If you temporarily become a 2-home owner due to relocation, education, employment, or job transfer, you can still receive the standard 1–3% rate — avoiding the 8% surcharge in regulated areas — as long as you sell the old home within the required period.
- General: Sell your previous home within 3 years of acquiring the new one
- Regulated → Regulated: If both old and new homes are in regulated areas, sell within 1 year
- Inheritance: Inherited homes may be excluded from the count (conditions apply)
If you miss the deadline, you’ll be charged the difference between the standard rate and the heavy rate retroactively. Keep track of your timeline carefully.
Frequently Asked Questions
Q. When is the payment deadline?
You must report and pay within 60 days of the balance payment date (acquisition date). For inherited property, the deadline is 6 months from the date of death. Missing the deadline triggers a 20% non-filing penalty plus daily late-payment surcharges.
Q. Does joint ownership between spouses reduce the tax?
Joint ownership doesn’t automatically reduce the total tax. The tax rate bracket is determined by the full property price, while the tax base is applied to each owner’s share. In practice, a ₩500M home purchased 50:50 by a couple costs the same total tax as a single-owner purchase. However, joint ownership may offer benefits for income tax or capital gains tax later.
Q. Do pre-sale rights (분양권) incur this tax?
Acquiring the pre-sale right itself doesn’t trigger the tax. However, when the completed home is delivered, you pay the full amount at that point. Your multi-home status is also assessed then, so if you hold multiple pre-sale rights, calculate your potential tax liability in advance.
Key Takeaways
- Single-home buyers: 1.1–1.3% for ≤ ₩600M, progressive 1.1–3.5% for ₩600M–₩900M, 3.3–3.5% for > ₩900M. Units ≤ 85㎡ are exempt from rural special tax.
- Multiple-home owners: 8% for 2 homes in regulated areas, 12% for 3+ homes. Even non-regulated areas impose 8% from the third home.
- First-time buyer discount: Up to ₩2M off for homes ≤ ₩1.2B, owner-occupied purpose (selling, gifting, or renting within 3 years triggers clawback).
- Temporary 2-home exception: Sell the old home within 3 years to keep the standard rate.
- Payment deadline: 60 days from balance payment. Don’t miss it — penalties add up fast.
Always run the numbers before buying a home.
This article is for informational purposes only and does not constitute investment advice or tax consultation. Tax rates and discount conditions may change with legislation. Please consult a qualified tax professional for specific decisions.
