2026 Tax Revision Bill — Basic Deduction on the Comprehensive Real Estate Holding Tax (종합부동산세) for 1-Home Households Rises from an Officially Assessed Price of 1.2 Billion to 1.4 Billion Won
Source material is a Korean government announcement (in Korean).
Under the '2026 Tax Revision Bill' announced by the government on August 3, 2026, the basic deduction on the comprehensive real estate holding tax for a 1-home household rises from an officially assessed price of 1.2 billion won to 1.4 billion won, so homes with a market price of about 2 billion won or less are excluded from the tax.
Key facts
| Announcement | Ministry of Finance and Economy Tax Development Deliberation Committee, '2026 Tax Revision Bill' (August 3, 2026) |
|---|---|
| Comprehensive real estate holding tax basic deduction | 1-home household: officially assessed price of 1.2 billion won → 1.4 billion won (homes with a market price of about 2 billion won or less excluded from taxation) |
| Effect by band | Owner-occupied 1 home: tax falls in the 2 billion–3 billion won market-price band, changes minimized in the 3 billion–4 billion won band, taxation strengthened above the 4 billion–5 billion won level |
| Capital gains tax basic deduction | 1-home household that has lived in the home for 10 years or more: 2.5 million won a year → 25 million won a year |
| Relocation by older people | People aged 65 or older who sell a home in the Seoul metropolitan area and move outside it: capital gains tax reduced by up to 50%, up to 500 million won |
| Capital gains tax on multiple homes | Heavier capital gains tax temporarily eased until 2028 |
| Timing | The comprehensive real estate holding tax revision takes effect in stages from next year; the capital gains tax revision applies from 2028 after a 1-year grace period next year |
Last checked:
The Ministry of Finance and Economy (재정경제부) held the Tax Development Deliberation Committee (세제발전심의위원회) at the Bank Hall (은행회관) in Jung-gu, Seoul on August 3 and announced the '2026 Tax Revision Bill'. The basic deduction on the comprehensive real estate holding tax for a 1-home household (1세대 1주택) will rise from an officially assessed price (공시가격) of 1.2 billion won to 1.4 billion won, excluding homes with a market price of about 2 billion won or less from taxation. For an owner-occupied 1 home, the tax amount falls in the 2 billion to 3 billion won market-price band, changes in the tax amount are minimized in the 3 billion to 4 billion won band, and taxation is strengthened for homes above the 4 billion to 5 billion won market-price level. For homes that are not lived in and for multiple-home ownership, the basic deduction amount for the comprehensive real estate holding tax is reduced. The special long-term holding deduction on the capital gains tax (양도소득세) shifts from a holding-based to a residence-based standard, and a new cap is placed on the deduction amount, which until now had applied without a limit. The basic capital gains tax deduction for a 1-home household that has lived in the home for 10 years or more increases from the current 2.5 million won a year to 25 million won a year, and people aged 65 or older who sell a home in the Seoul metropolitan area and move outside it receive a capital gains tax reduction of up to 50%, up to 500 million won. The heavier capital gains tax on multiple-home owners is temporarily eased until 2028. The comprehensive real estate holding tax revision takes effect in stages from next year, and the capital gains tax revision applies from 2028 after a 1-year grace period next year.
Summaries below are factual notes based on government announcements and primary sources — not evaluations or opinions.
FAQ
How does the threshold for not paying the comprehensive real estate holding tax change?
The basic deduction for a 1-home household rises from an officially assessed price of 1.2 billion won to 1.4 billion won, so homes with a market price of about 2 billion won or less are excluded from taxation.
What happens to the capital gains tax deduction when a long-occupied home is sold?
The basic capital gains tax deduction for a 1-home household that has lived in the home for 10 years or more increases from the current 2.5 million won a year to 25 million won a year.
When does it take effect?
The comprehensive real estate holding tax revision takes effect in stages from next year, and the capital gains tax revision applies from 2028 after a 1-year grace period next year.