📅 2025-01-12
A must-pay tax for car owners! Learn calculation methods by engine displacement, discount benefits, and payment periods.
Car tax is a local tax imposed on car owners in Korea. Paid twice a year in June and December, the tax amount is determined by engine displacement (cc). For non-commercial passenger cars, larger displacement means higher tax.
Non-commercial passenger car basis: ≤1,000cc 80 KRW/cc, ≤1,600cc 140 KRW/cc, >1,600cc 200 KRW/cc. Example: 2,000cc vehicle = (1,000cc × 80) + (600cc × 140) + (400cc × 200) = 244,000 KRW/year. Light cars (≤1,000cc) have low tax, about 80,000 KRW/year.
① Prepayment discount: Up to ~10% discount for January annual payment (exact rate varies by municipality). ② Disabled/veterans: Exemption or reduction (when requirements met). ③ Electric/hybrid cars: Reduction benefits (up to 1-1.4M KRW). ④ Large families: Reduction in some municipalities. ⑤ Light/small cars: Inherently low base tax.
1st installment (June): June 16-30. 2nd installment (December): December 16-31. Annual payment: Pay full year in January (January 16-31) for discount. Payment methods: Wetax, internet Giro, bank auto-transfer, ARS phone payment, virtual account transfer, mobile apps, etc.
Failing to pay car tax on time results in: ① 3% penalty. ② License plate confiscation/seizure when delinquent. ③ Cannot deregister/transfer car registration. ④ Possible insurance premium increase. ⑤ Possible credit score decrease. Must pay within deadline.
① Save ~10% with January annual payment. ② Choose light/small cars for lower base tax. ③ Purchase eco-friendly cars (electric, hybrid) for reduction benefits. ④ Check if eligible for large family/disabled reductions. ⑤ Manage car ownership period (based on June 1, December 1). ⑥ Check municipal reduction programs.
Car tax can be significantly reduced by utilizing annual payment. When purchasing a vehicle, consider both displacement and tax burden, and avoid penalties by meeting payment deadlines.