Real Estate Acquisition Tax Calculator

<p>Real estate acquisition tax is a local tax paid when acquiring real estate. As of 2025, tax rates vary greatly depending on the number of houses owned and the region. For single homeowners, rates of 1-3% apply based on housing price, while owners of two or more homes face higher rates of 3-12% depending on adjusted area status.</p><p>Acquisition tax must be declared and paid within 60 days of acquisition date. Failure to declare or delayed payment results in additional penalties. Along with acquisition tax, local education tax (10% of acquisition tax) and rural development tax (0.2% of acquisition price in certain cases) must also be paid.</p><p>In 2025, heavy tax rates on multiple homeowners remain in place, with particularly high rates applied to additional home acquisitions in adjusted areas. This is part of policies to curb real estate speculation and protect actual residents.</p>

<p>For single homeowners, differential rates apply based on housing price: 1% for homes under 600 million won, 2% for 600-900 million won, and 3% for over 900 million won. This measure alleviates tax burden when regular families acquire residential housing.</p><p>For two-home owners, an 8% acquisition tax rate applies in adjusted areas, while 3% applies in non-adjusted areas. Adjusted areas are government-designated regions with high housing price increases or speculation concerns, including most of Seoul and parts of the metropolitan area.</p><p>Owners of three or more homes face high rates of 12% in adjusted areas and 8% in non-adjusted areas. This serves policy purposes of discouraging multiple home ownership and increasing housing supply. However, some reduction benefits may apply for unavoidable reasons like inheritance or divorce.</p>

<p>Adjusted areas are regions designated by the Minister of Land, Infrastructure and Transport under the Housing Act, where housing price increases significantly exceed inflation or housing transactions are overheated. As of 2025, all of Seoul and parts of Gyeonggi Province are designated as adjusted areas.</p><p>In adjusted areas, acquisition tax rates for multiple homeowners rise significantly. Two-home owners face 8%, and three or more homes face 12%, compared to non-adjusted areas (3% and 8% respectively). This rate difference aims to suppress speculative demand and encourage actual residence transactions.</p><p>Adjusted area designation is reviewed quarterly and may be added or removed based on housing market conditions. Therefore, when trading real estate, you must verify the area's adjusted status, which can be confirmed on the Ministry of Land, Infrastructure and Transport website.</p>

<p>Local education tax is an additional tax on acquisition tax, amounting to 10% of the acquisition tax. For example, if acquisition tax is 10 million won, local education tax is an additional 1 million won. Local education tax applies uniformly to all real estate acquisitions and is used to enhance local education finances.</p><p>Rural development tax is imposed only under specific conditions. When the acquisition tax rate is 8% or higher - that is, for two or more homes in adjusted areas or three or more homes in non-adjusted areas - an additional 0.2% of the acquisition price is charged. This tax is used for rural development resources.</p><p>Therefore, if you acquire an additional home while owning two homes in an adjusted area, acquisition tax (8% or 12%) + local education tax (10% of acquisition tax) + rural development tax (0.2%) are all imposed, significantly increasing total tax burden. This acts as a strong deterrent to multiple home acquisitions.</p>

<p>Real estate acquisition tax must be declared and paid to the jurisdiction city, county, or district office within 60 days of the acquisition date. The acquisition date is generally the earlier of the final payment date or registration filing date. Declaration is possible online (Wetax) or offline (visiting city or district hall).</p><p>Required documents for declaration include real estate sales contracts, land registry copies, identification, and resident registration copies. For multiple homeowners, land registry copies of other homes must also be submitted for accurate rate calculation. After declaration, assessed tax can be paid immediately or installment payment can be requested.</p><p>Missing the payment deadline results in a 3% false declaration penalty on unpaid tax and a daily 0.025% late payment penalty. Therefore, accurately identifying the acquisition date and completing declaration and payment within 60 days is essential to avoid additional costs.</p>

<p>In 2025, acquisition tax reduction benefits are available if certain conditions are met. First-time homebuyers can receive a 50% reduction in acquisition tax (maximum 2 million won), with additional benefits for newlyweds. However, there are housing price and area restrictions.</p><p>Acquisition tax reduction benefits are also provided when disabled persons or national merit recipients acquire housing. Additionally, reductions are possible for acquiring housing in rural areas or designated cultural properties. Each reduction system has different eligibility requirements and application procedures requiring advance confirmation.</p><p>Reduction applications can be made together with acquisition tax declaration, requiring submission of related documentation. For first-time homebuyers, documents proving no previous housing ownership are necessary, and if reduction conditions are not met, retroactive collection may occur, making accurate verification important.</p>

<p>Acquisition tax is also imposed when acquiring real estate through inheritance, but lower rates apply than for purchases. Generally, the inheritance acquisition tax rate is 2.8%, with 2.3% applied for farmland. Inheritance acquisition tax must be declared and paid within 6 months of the inheritance commencement date (date of heir's death).</p><p>For real estate acquired through gifts, a 3.5% acquisition tax rate applies. Gifts involve transferring property without compensation, and acquisition tax must be paid separately from gift tax. Gift acquisition tax is declared and paid within 60 days of the gift date, typically completed before real estate registration.</p><p>Homes acquired through inheritance or gifts are added to existing owned homes, potentially applying multiple home rates for future additional home acquisitions. However, if unavoidably becoming a multiple homeowner through inheritance, disposing of homes within a certain period may qualify as temporary multiple ownership, avoiding heavy taxation in some cases.</p>

<p>For legal tax savings, reducing the number of homes is most effective first. Disposing of existing homes before acquiring additional ones allows single homeowner rates, significantly reducing tax burden. Especially in adjusted areas where rate differences by number of homes are large, such strategies are important.</p><p>Housing price is also an important consideration. For single homeowners, homes under 600 million won have 1% and under 900 million won have 2% low rates, so choosing homes in these price ranges when possible is advantageous. Additionally, considering homes in non-adjusted areas allows even multiple homeowners to receive relatively low rates.</p><p>First-time homebuyers and newlyweds should actively utilize reduction benefits. Prepare necessary documents for reduction applications in advance and accurately verify eligibility requirements to not miss benefits. Also, adhering to acquisition tax payment deadlines avoids penalties, and applying for installment payment in advance when needed helps with fund management.</p>

<p>When acquiring real estate, other taxes besides acquisition tax must be considered. Acquisition tax is a one-time tax, while property tax is an annual holding tax. Property tax is calculated based on assessed price, with rates varying by housing price and number of owned homes.</p><p>Comprehensive Real Estate Tax is an additional tax imposed when owning real estate above certain standards. As of 2025, single homeowners face comprehensive tax when combined assessed price exceeds 1.2 billion won, while multiple homeowners face it above 600 million won. This is additional taxation on expensive or multiple home ownership.</p><p>When selling real estate, capital gains tax is imposed. Capital gains tax is levied on transfer profit (sale price minus acquisition price and necessary expenses), with rates varying by holding period, number of homes, and residence status. Therefore, when planning real estate investment or residence, acquisition tax, property tax, comprehensive tax, and capital gains tax must all be comprehensively considered.</p>

<p>In Seoul, most areas are designated as adjusted areas, so when owners of two or more homes acquire additional homes, high rates apply. For example, acquiring a 500 million won apartment as a second home in Gangnam District, Seoul results in acquisition tax 8% (40 million won) + local education tax 10% (4 million won) + rural development tax 0.2% (1 million won) for a total of 45 million won in taxes.</p><p>Gyeonggi Province has mixed adjusted and non-adjusted areas by region. Some areas like Seongnam and Goyang are designated as adjusted areas, but outlying areas are non-adjusted. Acquiring two homes in non-adjusted areas lowers the acquisition tax rate to 3%, significantly reducing tax burden.</p><p>Provincial major cities like Busan, Daegu, and Gwangju have only some districts designated as adjusted areas. In non-adjusted areas of these cities, single homeowners acquiring homes under 600 million won face a very advantageous 1% low acquisition tax rate. Therefore, when trading real estate, verifying the area's adjusted designation status and developing transaction strategies accordingly is important.</p>