Capital Gains Tax
Tax on transfer gains.
Official basis · some exemptions excludedBased on 2026 rulesSources: Income Tax Act · National Tax Service
Sum of acquisition/transfer-related costs (brokerage, taxes, etc.).
Short-term rates (under 1–2 years) differ between housing and other assets such as land or commercial property. Selecting ‘Other’ hides the single-home field, which applies to housing only.
Total tax payable (incl. local tax)
0원
Multi-home surcharge rates are not applied (base rate only).
What is capital gains tax?
Capital gains tax is levied on the gain from selling real estate (sale price minus acquisition price and expenses). Longer holding periods reduce the taxable amount via the long-term holding deduction, and single-home households get an additional residence-period deduction.
Holding-period rates
- Under 1 year: 70% (house) / 50% (other). 1–2 years: 60% / 40%. 2+ years: progressive income tax brackets.
Multi-home surcharge notice
The calculation order, with real numbers
Capital gains tax follows this order: ① sale price minus acquisition price and expenses gives the transfer gain → ② the long-term holding deduction rate is applied → ③ the annual basic deduction (2.5M KRW) is subtracted to get the tax base → ④ holding-period rates produce the calculated tax → ⑤ a 10% local tax is added for the total payable.
Using the calculator's defaults (600M sale price, 400M acquisition, 10M expenses, general property, 5-year holding): gain = 600M − 400M − 10M = 190M. The long-term deduction is 2%/year from year 3, so 5 × 2% = 10%, leaving 190M − 19M = 171M. Subtracting the 2.5M basic deduction gives a 168.5M tax base. At 2+ years held, the progressive bracket (38%, 19.94M deduction) applies: 168.5M × 38% − 19.94M = 44.09M calculated tax, plus 10% local tax (4.409M) for a total of 48.499M KRW.
Holding and residence periods matter because the system discourages short-term speculative flips and rewards long-term, genuine-use ownership. Shorter holdings (under 2 years) face a higher flat rate instead of progressive brackets, while longer holdings shrink the tax base via the long-term deduction. Single-home households meeting certain conditions may qualify for a separate exemption on part of the gain, but the conditions (holding period, residence period, number of homes) vary case by case and change often. This calculator does not determine exemption eligibility — it only computes rates and deductions assuming the gain is taxable. Verify your own eligibility with Hometax or a tax professional.
The single-home exemption and filing deadlines
The biggest variable is not the rate but the exemption. Meet the conditions and there is no tax at all; miss one and the rates above apply in full.
Conditions for the exemption
A household owning a single home for two years or more is exempt on sale proceeds up to 1.2 billion KRW; above that only the corresponding portion of the gain is taxed, not the whole gain.
Homes bought while the area was designated as regulated also require two years of actual residence — judged at the time of purchase, so a later de-designation does not remove the requirement.
The test is by household: a spouse or dependent relative owning a home defeats the exemption even if you own nothing yourself.
Temporarily owning two homes while moving
Buying before selling is common enough that the old home keeps its exemption if conditions are met: the new home must be acquired more than a year after the old one, and the old one sold within a set period.
Separate reliefs cover households merged by marriage or to care for parents, and homes acquired by inheritance, each with its own period.
These periods have been adjusted with policy, so confirm the current rule before contracting — a day's difference can be worth a great deal.
Deadlines and deductible costs
A preliminary return is due within two months from the end of the month of transfer — the earlier of the balance payment or registration date. Two or more sales in a year are reconciled in a final return the following May.
Deductible costs reduce the gain: acquisition tax, conveyancing and brokerage fees, plus capital expenditure such as replacing windows, enclosing a balcony or upgrading heating.
Routine costs such as wallpaper, flooring or a new sink are not deductible. Either way documentation is required, so keeping invoices from every renovation is the practical saving.
Legal basis
- Single-home exemption — Income Tax Act art. 89 and Enforcement Decree art. 154
- Temporary two-home relief — Enforcement Decree art. 155
- Preliminary return — art. 105; final return — art. 110
- Deductible costs — art. 97
- Long-term holding deduction — art. 95