If you own a home, you have likely heard the news that the calculation method for the Comprehensive Real Estate Tax will be completely changed starting in 2027. According to the tax measures announced by the government this August, As the assessment standard changed from the number of houses to the value of the houses, You could end up paying less than half of your current taxes, or conversely, much more. In particular, the tax burden for those with joint ownership or non-residential homes can differ significantly from expectations.
However, since the policy changes are significant, it is important to identify in advance which category you fall into and which conditions are advantageous to you. In this article, I have summarized key points to help you roughly estimate your tax burden after 2027, explaining how the Comprehensive Real Estate Tax varies by housing ownership type and correcting common misconceptions one by one.
What exactly does it mean that the assessment criteria are changing?
Previously, the starting point of the Comprehensive Real Estate Tax was “how many houses one owns.” It was a system where owning two or more houses automatically made one subject to taxation. Starting in 2027, the determination will not be based solely on the number of houses, but will instead be based on “the combined value of the houses” along with “whether one actually lives in the house.”.
In other words, even a person who owns one house must pay taxes if the assessed value of that house is sufficiently high, and even for a person who owns three houses, the deduction amount varies depending on the proportion of residential housing. Even for houses of the same value, the basic deduction can differ by more than 500 million won simply based on residency., it is at a level that cannot possibly be compared with the previous method.
Joint ownership by a married couple does not constitute a single home.
This is the most common misconception. People naturally assume that if a married couple owns a house together, it counts as a single home, but the National Tax Service's tax laws have completely different standards. This is because the National Tax Service treats a house jointly owned by a married couple as "individual taxpayers, with each spouse owning 0.5 homes.".
The consequences are serious. A jointly owned house is calculated as two homes under tax law, and, You will not be able to receive various benefits of the one-home special provisions (tax credits, long-term holding deductions, etc.). If the property is in sole ownership, you miss out on available benefits, so taxes vary significantly depending on the ownership structure, even for the same house. If it is jointly owned by a couple who reside there, the basic deduction is 900 million won per person, totaling 1.8 billion won; however, if it is for non-residents, it drops sharply to 400 million won per person, totaling 800 million won.
| quote | Official price | Special provisions for one-household ownership | Joint ownership by married couple |
|---|---|---|---|
| About 2 billion | 1.4 billion | 0 won | 0 won |
| About 2.5 to 2.6 billion | 1.8 billion | About 1 to 1.5 million won | 0~Initial stage |
| About 3 billion | 2.1 billion | About 3.5 million won | Approximately 4.2 million won |
| About 3.5 billion | 2.5 billion | Approximately 5.6 million won | About 8 to 9 million won |
Taxes differ between a house you live in and a house you do not.
| year | Single-home owner (sole owner) | Three or more homes or areas subject to adjustment |
|---|---|---|
| 2027 | 70% | 70% |
| After 2028 | 70% | 80% |
Another key variable is "whether you are actually living there." Even for a single home of the same price, the basic deduction amount varies significantly depending on whether you reside there. For a single home where you actually live, the basic deduction rises from 1.2 billion won to 1.4 billion won, but for a single home where you do not live, it drops to 900 million won.
It effectively means that deductions of 500 million won or more will decrease. If the house is rented out or inherited but not lived in, the deduction amount will be significantly reduced, and if this coincides with an increase in the fair market value ratio, the tax burden could increase considerably. What is even more serious is that the tax thresholds are also different.However, for a non-residential single home, taxes are levied even if the officially assessed value exceeds 900 million won, whereas for an actual residence, tax is levied only if it exceeds 1.4 billion won.
Increase in Fair Market Value Ratio Varies by Housing Type
![Comparative table summarizing the Fair Market Value Ratio unified to 70% in [year] and the changes involving differentiated increases by housing type starting in 2028](https://goodlifetips.co.kr/wp-content/uploads/2026/08/image-155.png)
Since the Comprehensive Real Estate Tax is calculated based on the officially assessed price rather than the actual market price, the prospect of that rate increasing can sound frightening. However, if you check which category your home falls into, the impact may be less than expected. The important point is that the rate does not increase for all homes at the same rate.
In 2027, the Fair Market Value Ratio for all taxpayers will be standardized to 70%, but it will change starting in 2028. For single-home owners (single ownership, residency criteria), it stops at 70%, but, People who own three or more homes or a home in a designated adjustment area will have their rate raised to 80%. It means that the tax burden on multi-home owners is increasing more rapidly.
How much tax will be due for a house in Seoul worth around 2.5 billion won?
Since theory alone is difficult to grasp, let's look at a few examples of actual tax amounts. Please note that these are estimated figures based on a Fair Market Value Ratio of 60%, including local taxes, so please use them for reference only. In reality, more precise calculations tailored to your specific situation are required.
As shown in the table, receiving the special tax exemption for a single home results in lower taxes than joint ownership by a married couple. However, the choice depends on personal circumstances such as age, residency plans, and future plans to sell the house. Please keep in mind that if you are in your 30s, joint ownership, where each person is taxed separately, might be better, whereas for long-term residents aged 60 or older, the special tax exemption for a single home may be more advantageous.
To apply for the single-home special exemption, it must be in sole ownership.
A non-resident multi-homeowner can decide to live in one house and say, "I will apply for the one-house special exemption," but the conditions are strict. The special provision can only be applied for when the name is sole.That is the case. If it is jointly owned, you cannot receive special benefits no matter how long you reside there.
In addition, the tax credit limit will be reduced starting in 2028; the maximum tax deduction will be 8 million won until 2027 and 6 million won from 2028 onwards. This is intended to limit excessive benefits for ultra-high-priced homes. The most realistic way to prepare starting now is to organize your housing situation (number of homes, value, residency status, ownership structure) and determine which category you fall into.
If necessary, consult with a tax accountant or real estate expert to determine whether to apply for the single-home special exemption or maintain your current structure. There is still time, so there is no need to rush.