Property Tax Calculator
Calculate property tax by entering the official price, number of houses, and fair-value ratio.
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Comprehensive Real Estate Tax (CRET) is a national tax levied on owners of high-priced houses, land, and other real estate according to the tax base. It operates to ease excessive concentration of real estate and improve equity at the ownership stage.
The tax is computed by multiplying the tax base—the fair value (official price × fair-value ratio, minus the basic deduction by number of houses)—by a progressive rate. The tax base and rate vary greatly with the number of houses and the fair-value ratio.
It is especially important for multi-home investors, high-priced home owners, and those who acquired real estate by inheritance or gift. Knowing your annual tax burden in advance greatly helps with cash-flow planning and decisions on timing of sale or gift.
SeriesCalc's Property Tax Calculator automatically computes the fair value, tax base, and property tax when you enter the official price, number of houses, and fair-value ratio. The basic deductions (600M for 1 house, 900M for 2, 1.2B for 3+) and progressive rates are applied automatically.
Term Glossary
- Official Assessed Price
- The official real estate price published yearly by the Ministry of Land, Infrastructure and Transport. It differs from the actual market price and serves as the basis for taxes and various public charges.
- Fair Value Ratio
- The ratio (0–100%) that reflects the official price in the tax-base calculation. The NTS announces it yearly—close to 100% for houses, lower for land or commercial property. Since Fair Value = Official Price × Fair-Value Ratio, a lower value means a smaller tax base and less tax.
- Fair Value
- The value obtained by multiplying the official price by the fair-value ratio; the practical basis for property tax calculation.
- Tax Base
- The fair value minus the basic deduction by number of houses (600M for 1, 900M for 2, 1.2B for 3+). Multiply by the progressive rate to get the tax.
- Basic Deduction
- The amount deducted from the tax base by number of houses: 600M for 1 house, 900M for 2, 1.2B for 3+.
Property Tax Formula and Rates
1. Tax Base Calculation
Basic deduction: 600M for 1 house, 900M for 2, 1.2B for 3+
2. Progressive Rates (by Tax Base)
Up to 120M: 0.5%
120M–480M: 0.75%
480M–880M: 1.0%
880M–1.5B: 1.5%
1.5B–3B: 2.5%
3B–5B: 3.5%
Over 5B: 4.5%
※ A progressive structure where the rate applies only to the amount within each bracket.
Calculation Example
Official price 800M, fair-value ratio 70%, 1 house
Fair Value = 800,000,000 × 0.7 = 560,000,000 KRW
Tax Base = 560,000,000 − 600,000,000 = 0 → Property Tax 0
If the basic deduction (600M) exceeds the fair value, the tax base becomes 0 and no CRET is levied.
Useful Tips to Reduce Property Tax
1. Check the single-household deduction benefit.
A one-household, one-home owner gets the basic deduction up to 600M fair value. Check eligibility for extra benefits like special deductions and use them actively.
2. Know the exact fair-value ratio.
The fair-value ratio is announced yearly by the NTS. It differs by house or land, so you must enter the exact value for a precise calculation.
3. Verify the official price and consider objection.
The official price is the basis of tax. If you find it unfair, you can file an objection at publication time, so always check it.
4. Consider rate changes from changing house count.
More houses shrink the basic deduction and raise the progressive rate. Before acquiring more, compare the property-tax impact and alternatives (gift, sale) carefully.
5. Use expert consultation appropriately.
Deductions, exemptions, and rate application vary by individual situation. For complex cases, consult a tax accountant for a reasonable saving plan.
6. Weigh the tax burden of holding vs selling.
Compare not just CRET but also capital gains tax and acquisition tax to decide whether holding or selling is more advantageous.