The moment you sign the sale contract, a new worry sets in: how much acquisition tax will you actually owe? You may have heard it's 1% of the purchase price, but a quick search turns up other buyers who paid 3%, or even the alarming figures of 8% and 12%. Once you realize the rate isn't the same for everyone buying the exact same apartment, it's hard to feel settled until you've confirmed the real number before closing day.
In practice, Korea's apartment acquisition tax comes down to three questions: how much did you pay, how many homes will this make in your household, and is the property inside a regulated area? Answer those three and the rate falls out automatically. This guide walks through that structure step by step and works through price- and home-count-specific examples so you can estimate what to set aside before closing.
1. Why the Same Apartment Can Carry Different Tax Rates
The tax on buying a home in Korea is officially called "acquisition tax" (chwideukse), though older paperwork still uses the combined term "chwideungnokse" from before the 2011 reform that merged acquisition tax and registration tax into one. Merging the name didn't merge the rate — the same apartment can end up taxed very differently depending on three factors.
- Purchase price: Whether the price falls at or below 600 million won, between 600 million and 900 million won, or above 900 million won determines the base rate, which moves within a 1–3% range.
- Number of homes owned: Whether this purchase makes your household's first, second, or third-plus home determines whether the base rate (1–3%) applies, or whether the 8% or 12% heavy taxation rate kicks in.
- Regulated area status: Two households can each be buying a second home, but only the one buying inside a government-designated "regulated area" (jojeong daesang jiyeok) faces heavy taxation.
On top of the base acquisition tax, two surtaxes are always added: local education tax and the special rural development tax. Local education tax runs at roughly 10% of the acquisition tax rate, while the rural development tax only applies to units larger than 85 square meters of exclusive floor area. That's why a closing statement always lists three separate line items — acquisition tax, local education tax, and rural development tax — and the sum of all three is what you actually pay.
2. Rate Table: By Price, Home Count, and Regulated-Area Status
Base rate (no other homes owned, or a single home)
The two ends of the scale are fixed, but the 600 million–900 million won band in between rises gradually with price, following an interpolation formula:
Rate (%) = (Purchase price in 100M won × 2 ÷ 3) − 3
Plugging in 600 million won yields exactly 1%, and 900 million won yields exactly 3%, so the formula connects smoothly to both fixed bands. For example, a 700-million-won apartment works out to roughly 1.67%.
| Purchase price | Acquisition tax rate |
|---|---|
| ≤ 600 million won | 1% |
| 600M–900M won | 1–3% (calculated by the formula above) |
| > 900 million won | 3% |
Heavy taxation for multiple homes and corporations
Whether the heavy rate kicks in at the second or third home depends on whether the property sits in a regulated area.
| Home count | Regulated area | Non-regulated area |
|---|---|---|
| 1st home | 1–3% (base rate) | 1–3% (base rate) |
| 2nd home | 8% | 1–3% (base rate) |
| 3rd home+ | 12% | 8% |
| 4th home+ | 12% | 12% |
| Corporation | 12% (regardless of count) | 12% (regardless of count) |
Local education tax and rural development tax surcharges
- Local education tax: About 10% of the base acquisition tax rate (1% → 0.1%, 3% → 0.3%); fixed at 0.4% for the heavy taxation brackets (8% and 12%).
- Rural development tax: Only applies to units above 85 square meters of exclusive area — 0.2% in the base bracket, 0.6% for second-home heavy taxation, and 1.0% for third-home-and-above heavy taxation. Units at or under 85 square meters skip this surtax entirely.
Adding these together, the effective rate for second-home heavy taxation (above 85 sqm, regulated area) reaches 9.0%, and third-home-and-above heavy taxation reaches 13.4%.
3. Worked Examples: Comparing Rates by Price and Home Count
Let's apply the structure above to real numbers. The table below shows total acquisition tax (base plus both surtaxes) for units above 85 square meters, across different price and home-count combinations.
| Purchase price | Situation | Acquisition tax | Education tax | Rural tax | Total rate | Total tax owed |
|---|---|---|---|---|---|---|
| 500M won | 1st home (base rate) | 1% | 0.1% | 0.2% | 1.3% | 6.5M won |
| 700M won | 1st home (base rate) | ~1.67% | ~0.17% | 0.2% | ~2.03% | ~14.24M won |
| 1B won | 1st home (base rate) | 3% | 0.3% | 0.2% | 3.5% | 35M won |
| 700M won | 2nd home (regulated, heavy) | 8% | 0.4% | 0.6% | 9.0% | 63M won |
| 700M won | 3rd home+ (regulated, heavy) | 12% | 0.4% | 1.0% | 13.4% | 93.8M won |
Even at the exact same 700-million-won price, the gap between the first-home base rate (about 2.03%) and third-home-plus heavy taxation (13.4%) is roughly 6.6x. Because the tax jumps between whole rate brackets rather than scaling smoothly, the burden grows far faster than the price itself once you add homes or cross a price threshold. All figures above assume a unit above 85 square meters; units at or under 85 sqm skip the rural development tax and owe slightly less.
4. Situation-Specific Guidance
First home (no other homes in the household)
If this purchase is the only home owned by your household, only the base rate (1–3%) applies based on the price bracket. No separate application is needed — your household's home-ownership status is checked automatically when you file the acquisition report.
Temporary two-home ownership (moving or upgrading)
If you buy a new apartment before selling your existing home, you technically qualify for second-home heavy taxation. However, a temporary two-home exception lets you pay the base rate instead, as long as you sell the existing home within 3 years of acquiring the new one. You still file at the base rate at the time of purchase, but you must meet the three-year disposal deadline. Miss it, and the difference between the base rate and the 8% heavy rate — plus penalties — can be retroactively assessed, so it's worth planning the sale timeline in advance.
Multi-home owners and corporations
Buying a second-or-later home in a regulated area, or a third-or-later home outside one, triggers the 8% or 12% heavy rate. Certain homes are excluded when counting toward this threshold — for example, inherited homes (within 5 years of inheritance), low-value homes with a public price under 100 million won, or homes outside the capital region with a public price under 300 million won. It's worth checking whether any of your other properties fall into these excluded categories.
First-time buyer relief
If every member of your household has never owned a home before and this purchase is genuinely their first, acquisition tax is waived up to a cap of 2 million won. If the calculated tax is 2 million won or less, it's fully exempt; if it exceeds that, you only pay the amount above 2 million won. Eligibility usually depends on a purchase-price ceiling, and if you sell or rent out the home within a set period (typically 3 years), the exempted tax can be clawed back — so meeting the residency requirement matters.
5. Frequently Asked Questions
Q1. When and where do I need to pay acquisition tax?
You must file and pay within 60 days of the acquisition date (the earlier of the balance payment date or the registration date). You can file and pay online through Wetax (wetax.go.kr), or in person at your local district tax office or a bank counter. Missing the deadline adds both a failure-to-file penalty and a late-payment penalty.
Q2. Why does 85 square meters matter so much?
By law, the rural development tax only applies to units larger than the "national housing scale" of 85 square meters of exclusive area (100 square meters in non-metropolitan rural townships). At the same purchase price, a smaller unit at or under 85 sqm skips this surtax and owes a slightly lower total.
Q3. What happens if I can't sell my old home within the 3-year temporary two-home window?
If the deadline passes, the gap between the base rate you originally paid and the 8% second-home heavy rate is assessed retroactively, along with penalties. If a sale looks like it will run late, it's worth consulting a tax accountant or your local tax office in advance to understand the potential exposure.
Q4. Does the same rate apply to pre-sale rights (bunyangkwon) or officetels?
Pre-sale rights are generally treated as a home acquisition once the balance is paid at completion, so the standard 1–12% home rate applies. Officetels, however, are classified as commercial buildings under tax law even when used as a residence, and typically carry a separate rate around 4% at acquisition. Because the applicable rate depends on exactly what you're buying, it's worth confirming this before signing.
6. Check Your Number with the Acquisition Tax Calculator
Between the interpolation formula for the 600M–900M band, whether heavy taxation applies based on home count, and the education/rural tax surcharges, it's easy to make a mistake at a price boundary or a floor-area cutoff. Enter your purchase price and home count into the acquisition tax calculator to get your total instantly. If you're also curious about the annual holding tax on a home you already own, check the property tax calculator as well.
If you're planning to finance part of the acquisition tax with a loan, the loan repayment calculator guide can help you work out the monthly payment alongside your tax budget. For the annual property tax you'll owe after closing, see how apartment property tax is calculated.
These rates reflect the 2026 rules as currently in effect. Regulated-area designations and relief programs change fairly often, so please reconfirm your actual tax liability with Wetax, your local tax office, or a tax professional before closing.
