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Korean Capital Gains Tax Calculator

Estimate Korean real estate capital gains tax from sale price, purchase price, and holding period — with long-term deduction and short-term penalty.

Estimated capital gains tax

Total tax (income + local)
82,357,000KRW

Effective rate 29.4% · Applied rate 38%

Capital gain
280,000,000 KRW
Long-term holding deduction
-28,000,000 KRW
Tax base
249,500,000 KRW
Calculated tax
74,870,000 KRW
Local income tax
7,487,000 KRW
After-tax gain
197,643,000 KRW

Simplified 2024 Income Tax Act calculation. Single-house exemption under KRW 1.2B and multi-house penalties not included. Consult a tax accountant for filing.

What this tool does

The Korean real estate capital gains tax calculator estimates tax from sale price, purchase price, and holding period. From the capital gain it subtracts the long-term holding deduction (up to 30% general, up to 80% for a single-house household) and the KRW 2.5M basic deduction, applies the 8-bracket progressive rate, adds 10% local tax, and shows total tax and after-tax gain. Short-term penalty rates (under 2 years) are included.

Who uses this

  • Simulate tax before selling property
  • Compare long-term deduction by holding period
  • Check savings from the single-house benefit
  • See short-term (under 2 years) penalty rates
  • Estimate after-tax net proceeds

How to use (5 steps)

  1. 1Enter sale price and purchase price.
  2. 2Enter expenses (acquisition tax, brokerage, capital improvements). They reduce the gain.
  3. 3Enter holding period (years). The long-term deduction applies from 3 years.
  4. 4Choose asset type (house/land) and single-house status. For a single house, residing period also affects the deduction.
  5. 5Results show gain, long-term deduction, tax base, calculated tax, local tax, and after-tax gain.

Capital gains tax formula (Income Tax Act)

Gain = sale price − purchase price − expenses Long-term deduction = gain × rate General: 6% at 3 years, +2%/year, capped 30% at 15 years Single house: 4%/year holding + 4%/year residing, max 80% Taxable income = gain − long-term deduction Tax base = taxable income − KRW 2.5M basic deduction Calculated tax = base × progressive rate − deduction (same 8 brackets as income tax) Local income tax = calculated tax × 10% Short-term (penalty): house under 1yr 70%, under 2yr 60% Land/building under 1yr 50%, under 2yr 40%

Real examples

Example 1: Sale 500M, buy 300M, 5 years (general house)

Gain 180M (after 20M expenses). Long-term 10% (6%+2×2%) = 18M. Base 155M. 35% bracket → ~39M calculated + 3.9M local = ~42.9M KRW.

Example 2: Single house, 10 years held & resided

Even a 1B gain gets 80% deduction = 800M off. Tax base drops to ~190M. Note: if sale is under KRW 1.2B it's fully exempt (this tool covers the taxable case).

Example 3: Short-term, under 1 year

Gain 100M, held 6 months. No long-term deduction (under 3 years). Base 97.5M × 70% = 68.25M + local. Short-term flips carry very high tax.

Frequently asked questions

Is a single house always tax-exempt?+

Exempt if sale price is under KRW 1.2B and held 2+ years (2 years residing in regulated areas). The portion above 1.2B is taxed, where the up-to-80% long-term deduction gives big relief. This calculator covers the taxable case.

Why is the long-term deduction so large?+

It accounts for inflation and policy support for long holdings. General is up to 30%, but a single house (holding + residing, up to 40% each) reaches 80%, sharply lowering tax for 10+ year owner-occupants.

Why are short-term rates so high?+

To curb speculative flipping. A house held under 1 year is taxed at 70% — higher than the top progressive bracket (45%). Hold 2+ years for the normal progressive rate.

What counts as deductible expenses?+

Acquisition/registration tax, legal and brokerage fees, and capital improvements (windows, balcony expansion, boiler replacement that add value). Maintenance expenses (wallpaper, flooring) are excluded. Keep receipts.

Are multi-house penalties included?+

No, this uses the base progressive rate. Regulated-area surcharges (+20%p for 2 houses, +30%p for 3) change often with policy and are excluded. Multi-house owners should consult a tax accountant.

What is the KRW 2.5M basic deduction?+

An annual deduction applied once to capital gains. Multiple sales in the same year share a single 2.5M deduction. This calculator applies it per single sale.

Cautions

  • •Simplified 2024 Income Tax Act calc. Single-house exemption and multi-house penalties not included.
  • •Regulated-area surcharges and reductions change often — verify separately.
  • •Only capital improvements are deductible (not maintenance); keep receipts.
  • •Long-term deduction counts holding and residing in whole years.
  • •For accurate filing, consult Hometax or a tax accountant.

Last reviewed: 2026-05-30

Korean Real Estate Capital Gains Tax Calculator