Tax & Payroll

Automobile Tax Calculator

Automobile tax by engine size and vehicle age, with prepayment discount.

Statutory formulaBased on 2026 rulesSources: Local Tax Act · Wetax

cc
yr

Discount of 5%p per year from year 3 (max 50%).

Final payment

520,000원

Annual tax (car tax + edu. tax)520,000 원
Car tax400,000 원
Local education tax120,000 원
Prepayment discount0 원

2026 reference estimate. Commercial, light, and electric vehicle exemptions are not reflected; verify with Wetax or your local government.

What is car tax?

Car tax is a local tax levied on vehicle owners based on engine displacement. Non-commercial passenger cars are billed in June and December, or may be prepaid in January for a discount.

Rate per cc by displacement (non-commercial passenger cars)

Up to 1,000cc: 80 KRW/cc. 1,000–1,600cc: 140 KRW/cc. Over 1,600cc: 200 KRW/cc. A local education tax (30% of the discounted car tax) is added, and the tax is reduced by 5%p per year (max 50%) starting from the vehicle's 3rd year.

Annual tax examples by displacement

New car, non-commercial: 1,000cc → 104,000 KRW/yr (car tax 80,000 + edu. tax 24,000). 1,600cc → 291,200 KRW/yr (224,000 + 67,200). 2,000cc → 520,000 KRW/yr (400,000 + 120,000). With a 5-year-old 2,000cc car (15% age discount): 442,000 KRW/yr (340,000 + 102,000).

How much is the prepayment discount?

Paying the full annual amount in advance in January earns a discount of roughly 5% (2026 reference rate, subject to annual notice). This tool calculates based on the January prepayment. Applying in March/June/September prorates the discount to the remaining months: for a new 2,000cc car (520,000 KRW/yr), the approximate discount is 23,800 KRW in January, 19,500 in March, 13,000 in June, and 6,500 in September.

Estimate only. 2026 reference figures; verify with Wetax or your local government for exact amounts.

Payment schedule and reductions by vehicle type

Vehicle tax follows engine size, but the actual bill depends on when the car was owned and what type it is — a common source of confusion in used-car deals.

Billed twice a year

Vehicle tax is billed in two halves, payable 16-30 June and 16-31 December, each covering the preceding period of ownership.

Paying the whole year in January earns a discount on the remaining months. Applications in March, June and September are also possible, but the shorter remaining period reduces the actual saving.

Selling or scrapping after prepaying entitles you to a refund for the unused period, which is not always automatic.

Used-car deals are apportioned by day

The tax is apportioned by days of ownership around the transfer date, so unlike property tax it is not borne entirely by whoever owns it on a set day.

Delaying the transfer keeps the liability with the seller. Registration must be completed within 15 days of sale, with a separate fine for delay.

Where the year was prepaid, the seller is refunded for the unused period and the buyer is billed for their own.

Differences by vehicle type

Electric and hydrogen vehicles have no engine displacement, so a flat amount applies instead — much lower than for combustion engines, though local education tax still applies.

Small cars of 1,000cc or less attract a lower rate, alongside other benefits such as fuel tax rebates.

Vehicles owned by people with disabilities, national merit recipients and larger families can qualify for reductions, but these must be applied for and are usually limited to one vehicle.

Legal basis

  • Rates — Local Tax Act art. 127
  • Payment periods — art. 128
  • Prepayment discount — Enforcement Decree art. 125(6)
  • Daily apportionment — art. 128(4)
  • Reductions — Restriction of Special Local Taxation Act art. 17
How is car tax calculated?
For non-commercial passenger cars, displacement (cc) is multiplied by the applicable rate per cc (80 KRW up to 1,000cc, 140 KRW up to 1,600cc, 200 KRW above).
How does the age discount work?
Starting from the vehicle's 3rd year, the tax is reduced by 5%p per year, up to a maximum of 50% (around 12+ years).
Is there a discount for prepaying?
Prepaying the full annual amount in January earns a discount of roughly 5% (2026 reference rate, subject to annual notice).
How much is the local education tax?
30% of the discounted car tax amount is added as local education tax, paid together with the car tax.
What is the annual tax for a 2,000cc car?
For a new car: 400,000 KRW car tax + 120,000 KRW education tax = 520,000 KRW/yr. At 5 years old (15% discount), it drops to 442,000 KRW.
Is there a discount for prepaying in March, June, or September?
Yes, prorated to the remaining months. For a new 2,000cc car, the approximate discount is 23,800 KRW in January, 19,500 in March, 13,000 in June, and 6,500 in September.