Interest has grown in whether the 2026 comprehensive real estate tax reform means that the tax will be abolished. However, the conclusion based on verified materials is different. The government announced a reform plan to change the basic deduction, fair market value ratio, and tax rate structure for the comprehensive real estate tax. As of August 31, 2026, it is not a finalized or enacted law.
Current Comprehensive Real Estate Tax Rules in Force
According to the current guidance from the National Tax Service, the assessment date for comprehensive real estate tax is June 1 every year, and the payment period runs from December 1 to December 15 each year.
For housing, the basic deduction is KRW 900 million for general taxpayers and KRW 1.2 billion for single-home owners in a single household. The basic deduction for corporations is zero, and the fair market value ratio is 60%. Current tax rates distinguish between owners of two or fewer homes and owners of three or more homes, with maximum rates by tax base bracket of 2.7% and 5.0%, respectively.
The first thing to check is that the “currently applicable rules” are not confused with the “changes proposed by the government.”
What Changes Under the 2026 Tax Reform Plan
The government’s plan would apply different basic deductions to single-home owners depending on whether the home is owner-occupied. The basic deduction for an owner-occupied single home is proposed to increase from KRW 1.2 billion to KRW 1.4 billion, while the deduction for a non-owner-occupied single home is proposed to decrease from KRW 1.2 billion to KRW 900 million.
The fair market value ratio and tax rates would also change in stages.
| Item | Current National Tax Service guidance | 2026 tax reform plan |
|---|---|---|
| Basic deduction for an owner-occupied single home | KRW 1.2 billion | KRW 1.4 billion proposed |
| Basic deduction for a non-owner-occupied single home | KRW 1.2 billion | KRW 900 million proposed |
| Fair market value ratio | 60% | 70% in 2027; 80% for certain taxpayers in 2028 proposed |
| Tax rate structure | Distinguishes between two or fewer homes and three or more homes | 0.5–3.5% for owners of one or two homes in 2027; a single 0.5–5.0% system based on home value proposed from 2028 |
Under the plan, the fair market value ratio for housing would rise to 70% in 2027. For owners of three or more homes and owners of homes in designated adjustment-target areas, among others, it would rise to 80% in 2028. Tax rates for owners of one or two homes would be adjusted to 0.5–3.5% in 2027. From 2028, the plan would replace the home-count-based system with a single 0.5–5.0% system based on housing value.
Why It Is Essential to Check Whether the Law Is Final
The government announced its comprehensive real estate tax reform plan on August 3, 2026. Government advance legislation notice materials include revisions to the basic deduction, fair market value ratio, tax rates, tax credits, and the cap on tax increases. However, as of August 31, 2026, it remains a government proposal undergoing the advance legislation notice and National Assembly submission procedures.
Therefore, it is difficult at this point to conclude that the reform plan has already taken effect or that taxes will rise for all homeowners. The actual tax amount may vary depending on the number of homes, officially assessed value, type of housing, ownership and shares, holding and occupancy periods, location, and whether special provisions apply.
Acquisition tax, comprehensive real estate tax, capital gains tax, gift tax, and inheritance tax have different taxable subjects and purposes, and they are not all imposed simultaneously on every homeowner. Individual tax calculations or tax-saving decisions under the reform plan should be assessed using the latest laws together with each taxpayer’s specific circumstances.
Sources Checked
- [National Tax Service: “Questions About the Comprehensive Real Estate Tax Law”](https://d.nts.go.kr/nts/cm/cntnts/cntntsView.do?cntntsId=7739&mi=40401) — checked August 31, 2026
- [Korea Policy Briefing: “Tax Reform for Fair Taxation: Comprehensive Real Estate Tax Reform”](https://www.korea.kr/news/policyNewsView.do?newsId=148970184) — checked August 31, 2026
- [Ministry of Economy and Finance: “2026 Tax Reform Plan”](https://mofe.go.kr/nw/mosfnw/detailInfograpView.do?menuNo=4040500&searchNttId1=MOSF_000000000078819) — checked August 31, 2026
- [Legislation Center for Public Participation: “Advance Legislation Notice of Partial Amendment to the Comprehensive Real Estate Tax Act”](https://opinion.lawmaking.go.kr/lmSts/govLm/2000000329538/detailRP) — checked August 31, 2026
- [Korean Law Information Center: “Comprehensive Real Estate Tax Act”](https://www.law.go.kr/lsInfoP.do?joNo=000300&lsId=009873) — checked August 31, 2026
- [Yonhap News coverage](https://www.yna.co.kr/view/AKR20260803075300002?section=economy/all) — checked August 31, 2026
- [Korea Economic Daily coverage](https://www.hankyung.com/article/2026082884616) — checked August 31, 2026