How Housing Acquisition Tax Differs by Price
The structure — rates split at 600M and 900M KRW
Housing acquisition tax splits into three price bands. Homes at 600M KRW or below pay a flat 1%, and homes above 900M KRW pay a flat 3%. The band between 600M and 900M KRW is unusual: instead of one fixed percentage, the rate itself is computed from the price. A 610M KRW home and an 890M KRW home both sit in this band, but they pay different rates.
The formula for the middle band — not a flat rate
The rate (%) in this band is house price in 100M-KRW units × 2/3 − 3. For a 750,000,000 KRW (750M) home: 7.5 × 2/3 − 3 = 5 − 3 = 2%, giving a tax of 750,000,000 × 2% = 15,000,000 KRW. Plugging in the boundaries confirms continuity: at 600M, 6×2/3−3=1% matches the band below; at 900M, 9×2/3−3=3% matches the band above.
Three cases compared — 500M, 750M and 1,000M KRW
| House price | Rate applied | Acquisition tax |
|---|---|---|
| 500,000,000 원 | 1% | 5,000,000 원 |
| 750,000,000 원 | 2% | 15,000,000 원 |
| 1,000,000,000 원 | 3% | 30,000,000 원 |
The 500M home falls in the flat 1% band and the 1,000M home in the flat 3% band; only the 750M case goes through the formula, landing at 2%.
Why the formula looks this way — a line between two points
The seemingly awkward formula “price × 2/3 − 3” is simply a straight line connecting two points: 1% at 600M and 3% at 900M. As price rises 300M KRW from 600M to 900M, the rate rises 2 percentage points, so each additional 100M KRW adds 2/3 of a percentage point. That slope (2/3) times the price in 100M-KRW units, offset by an intercept (−3) so it lands exactly on 1% at 600M, is the whole story behind this formula.
Rural and local education surtaxes apply separately
On top of the acquisition tax above, purchasing a home often triggers a separate rural special tax and local education tax. Whether these apply and how much they add depends on the acquisition rate, number of homes owned and floor area, so this guide does not give specific figures. Confirm the total burden with Wetax or the tax office of the local district or county where the property sits.
Who files, and when to have the cash ready
Filing and paying acquisition tax is, in principle, the buyer’s own obligation, though in practice a licensed judicial scrivener often handles it together with the ownership-transfer registration. Registration itself can be delayed until the tax is filed and paid, so it is common to set the cash aside around the balance-payment date.
Owning multiple homes changes the picture
Acquiring an additional home while already owning two or more can trigger a higher, penalty rate above the table shown here. Because the multi-home surtax thresholds are subject to ongoing policy discussion, this guide does not state specific multipliers or bands. Confirm the rate that applies to your situation, as of the acquisition date, with Wetax or the relevant district office.
Planning alongside your financing
Because acquisition tax is a lump sum due right after signing, it is worth comparing how much cash each repayment type demands upfront if you are financing the purchase with a loan. The repayment types guide compares first-month payments across equal-payment, equal-principal and bullet repayment. This is reference information as of 2026-07-17; see the Local Tax Act for the source, and confirm specifics with Wetax or a licensed tax accountant.