[Comprehensive Real Estate Tax Shock] Government States "Only 2.1% of Single-Homehousehold Owners Face Increased Burden This Year"

Explanation of Key Points on This Year's Residential Comprehensive Real Estate Tax Notice
"Market Price Under 2.5 Billion Won Bears 500,000 Won Burden"

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Moon Chaeseok] The government has moved to ease concerns by stating that only 2.1% of those who bear the increased comprehensive real estate tax (Comprehensive Property Tax) burden of 3.9 trillion KRW this year compared to last year are single-household single-homeowners. It explained that single-household single-homeowners with a market value of 2.5 billion KRW or less only need to pay 500,000 KRW.

On the 22nd, the Ministry of Economy and Finance released a press reference material ahead of the National Tax Service’s issuance of this year’s comprehensive property tax bills, stating that the tax burden would not be as heavy as feared.

According to the Ministry of Economy and Finance on that day, the number of people receiving housing-related comprehensive property tax bills this year is 947,000, with a tax amount of about 5.7 trillion KRW. The number of taxpayers increased by 300,000 (45%) from 667,000 last year, and the tax amount increased by 3.9 trillion KRW (216.7%) from 1.8 trillion KRW. Accordingly, as Deputy Minister Lee Eokwon stated on the 19th, the ministry explained that "98% of the people are not affected by the comprehensive property tax."

Among the taxpayers of this year’s increased housing-related comprehensive property tax amount (3.9 trillion KRW), single-household single-homeowners account for 2.1% (79.9 billion KRW). The proportion of the tax amount borne by single-household single-homeowners compared to the total housing-related comprehensive property tax amount billed this year (5.7 trillion KRW) is 3.5% (200 billion KRW).

The Ministry of Economy and Finance announced that about 98.1% of homeowners with houses valued at approximately 1.6 billion KRW (officially assessed price 1.1 billion KRW) or less are excluded from taxation. The number of houses exceeding this threshold as of this year is 346,000, accounting for 1.9% of the total. According to the ministry, by raising the basic deduction amount from an official assessed price of 900 million KRW to 1.1 billion KRW (approximately 1.3 billion KRW to 1.6 billion KRW in market value), the number of people receiving bills decreased by 89,000 (-40.3%), and the tax amount decreased by 81.4 billion KRW (-29.1%).

Among single-household single-homeowners subject to comprehensive property tax, 72.5% who own houses valued at 2.5 billion KRW or less (officially assessed price 1.7 billion KRW, taxable standard 600 million KRW) only need to pay an average of 500,000 KRW.

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