This Year, Comprehensive Real Estate Tax on 1.5 Billion Won House Drops from 610,000 Won to 0 Won... 2 Billion Won House from 2.47 Million to 1.23 Million Won

Effect of the Comprehensive Real Estate Tax Act Amendment Bill Scheduled for Passage in the National Assembly Plenary Session on the 30th
Analysis Results of Real Estate Tax Calculation Service Sellimon

[Image source=Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] Single homeowners with a house valued at 1.5 billion KRW will be exempt from the comprehensive real estate holding tax (종합부동산세, 종부세) this year. Those owning a house worth around 2 billion KRW will see their 종부세 burden cut in half.

According to the tax industry on the 29th, the amendment to the 종부세 law, which is set to pass the National Assembly plenary session on the 30th, is analyzed to have this effect.

According to the 종부세 simulation results by 'Sellimon,' a real estate tax calculation service, single homeowners with a house valued at 1.5 billion KRW will be excluded from the tax base as the 종부세 taxable threshold (officially announced price) rises from the current 900 million KRW to 1.1 billion KRW. If the existing tax threshold were applied, they would have to pay 610,000 KRW in 종부세 this year, but due to the threshold adjustment, they will not have to pay 종부세.

Married couples jointly owning a single house with a 50:50 share also do not pay 종부세. They receive a total deduction of 1.2 billion KRW, 600 million KRW each. This result assumes a 70% official price realization rate for a house valued at 1.5 billion KRW, excluding the effects of senior and long-term ownership deductions.

The government set a target official price realization rate of 78.3% this year, but experts analyze that due to recent housing price increases, the actual official price realization rate for individual houses remains around 70%.

The 종부세 law amendment, which has passed the National Assembly Judiciary Committee, includes raising the additional deduction for single homeowners from 300 million KRW to 500 million KRW. Considering the basic deduction of 600 million KRW, the taxable threshold rises from the current official price of 900 million KRW to 1.1 billion KRW. Applying a 70% official price realization rate to a house valued at 1.5 billion KRW results in an official price of about 1.05 billion KRW. While this would be taxable under the existing 900 million KRW threshold, the increase to 1.1 billion KRW excludes it from taxation.

For single homeowners with a house valued at 2 billion KRW (official price 1.4 billion KRW), raising the 종부세 threshold from 900 million KRW to 1.1 billion KRW reduces their tax burden from 2.47 million KRW to 1.23 million KRW this year. Married couples jointly owning with a 50:50 share pay a total of 660,000 KRW. Single homeowners with a house valued at 2.5 billion KRW (official price 1.75 billion KRW) see their 종부세 burden decrease from 5.7 million KRW to 3.51 million KRW. Married couples jointly owning pay a total of 1.93 million KRW.

Lee Seongu, CEO of Artiwells, the operator of the tax calculator Sellimon, said, "This year, the increase rate of official housing prices was very high compared to previous years, and many amendments and new provisions related to 종부세 have been introduced, so not only multi-homeowners but also single homeowners need to actively seek 종부세 tax-saving measures."

This content was produced with the assistance of AI translation services.