Car tax is a local tax imposed on vehicle ownership
It is imposed on the owner of a registered or reported vehicle. Even for passenger cars, the calculation method differs depending on whether the vehicle is commercial or non-commercial, whether tax is based on engine displacement, or whether it falls into another passenger-car category.
Engine displacement brackets do not use progressive deductions
For non-commercial passenger cars, multiply the entire engine displacement by 80 won per cc when it is 1,000 cc or less, 140 won per cc when it is 1,600 cc or less, and 200 won per cc when it exceeds 1,600 cc. For a 2,000 cc vehicle, the principal annual car tax is 2,000 × 200 won, or 400,000 won. Local education tax may be added, bringing the general total before age-based reductions to 520,000 won.
Age-based reductions apply starting in the third year
For non-commercial passenger cars, car tax decreases by 5% each year starting in the third year. Vehicles over 12 years old are treated as 12 years old, with a maximum reduction of 50%. If a vehicle is newly registered or deregistered during the year, the tax may be calculated pro rata based on the ownership period.
Regular installments are usually paid in June and December
The usual payment periods are June 16–30 for the first installment and December 16–31 for the second installment. If the annual tax amount is 100,000 won or less, the full amount may be assessed in the first installment. Payment can be made through Wetax, Internet Giro, financial institutions, or the method shown on the bill.
The 2026 annual prepayment discount rate is 5%
Annual prepayment is a system that lets you pay the tax for the remaining period in advance and receive a discount. The 2026 discount rate is 5%, and the January annual prepayment application and payment deadline was extended to February 4 due to the Lunar New Year holiday schedule. Check Wetax notices again for the actual discount amount and deadline for other application months or future years.
Check reduction requirements separately for the vehicle and owner
Reductions for people with disabilities, national veterans, and parents raising multiple children vary by vehicle type, joint registration status, household requirements, and reduction limits. You should not assume that car tax is automatically reduced by the same amount simply because a vehicle is electric or hybrid. Acquisition tax reductions and taxes on vehicle ownership must also be distinguished.
Late payment charges may apply when the deadline is missed
If payment is not made by the deadline on the bill, 3% of the unpaid local tax may be charged. Continued delinquency above a certain amount may lead to additional charges or collection measures such as license plate seizure and property attachment. A simple missed payment is not generally considered to immediately increase car insurance premiums.