Pay Your Car Tax at Once and Get a 5% Discount

Reducing the Burden with the Annual Automobile Tax Prepayment Discount Rate
Tax Levied in Two Installments... Discount Applied for January Payment

The government will continue to offer a 5% discount on the annual automobile tax if paid in advance this year as well.

The Ministry of the Interior and Safety announced on the 12th that the amendment to the "Local Tax Act Enforcement Decree," which maintains the automobile tax annual prepayment discount rate at 5% in 2024 to ease the burden on taxpayers, was approved at the Cabinet meeting at the end of last year and will be implemented immediately.

The automobile tax is levied in two halves in June and December, but if the total annual tax amount is paid once in January, a portion of the tax can be deducted.

When the automobile tax annual prepayment system was introduced in 1994, a 10% discount rate was applied considering the Bank of Korea’s base interest rate (12.66%). However, due to the ongoing low interest rate trend, the discount rate was planned to be gradually reduced to 3%. Nevertheless, considering the increased household burden caused by recent interest rate hikes and the continuing economic downturn, the "Local Tax Act Enforcement Decree" was amended to maintain the discount rate at 5% continuously from 2025.

Automobile tax annual prepayment can be applied for not only in January but also in March, June, and September, with the reporting and payment period from the 16th to the end of the respective month. The automobile tax annual prepayment report can be made by visiting the local city, county, or district office or through the Wetax website. In Seoul, it is available via eTax. Hansunki, Director of the Local Finance and Economy Office, stated, "By maintaining the automobile tax annual prepayment discount rate at 5%, we aimed to reduce the tax burden on automobiles closely related to citizens' lives and thereby help alleviate household burdens even slightly."

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