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Korean Car Acquisition Tax

Estimate Korean car acquisition tax from the purchase price — passenger 7%, light 4%, eco-car discount.

Acquisition tax

Tax payable
2,100,000KRW

Rate 7%

Tax (before discount)
2,100,000 KRW

Local Tax Act. New cars use ex-factory price (excl. VAT); used cars the higher of actual price/assessed value. Bond purchase and registration fees are separate.

What this tool does

The Korean car acquisition tax calculator computes the tax from a vehicle's purchase price. It applies 7% for passenger cars, 4% for light cars, and 5% for vans/cargo, with up to KRW 1.4M eco-car discount and exemption for light cars under KRW 500K. Check the actual tax before registering a new or used vehicle.

Who uses this

  • Estimate acquisition tax before buying a new car
  • Calculate tax on a used-car purchase
  • Check EV/hydrogen-car discounts
  • Determine light-car exemption
  • Plan total vehicle purchase cost

How to use

  1. 1Enter the acquisition price (taxable base, excl. VAT). New cars use ex-factory price; used cars the higher of actual price/assessed value.
  2. 2Select vehicle type (passenger/light/eco/van-cargo) to apply the rate and discount.
  3. 3See the tax after the eco discount. Bond purchase costs are separate.

Acquisition tax formula (Local Tax Act)

Tax = price × rate Passenger: 7% Light (≤1000cc): 4% (exempt if ≤ KRW 500K) Van/cargo: 5% Eco (EV/hydrogen): up to KRW 1.4M discount e.g. passenger 30M × 7% = 2.1M KRW eco 50M × 7% = 3.5M − 1.4M = 2.1M KRW

Real examples

Example 1: Passenger car KRW 30M

30M × 7% = 2.1M KRW. Bond purchase (by region/price) and stamp fees are added separately.

Example 2: Light car KRW 10M

10M × 4% = 400K, but under 500K so exempt. Tax 0. A light-car benefit.

Example 3: EV KRW 50M

50M × 7% = 3.5M − 1.4M eco discount = 2.1M KRW. KRW 1.4M cheaper than the equivalent gas car.

Frequently asked questions

Are acquisition and registration tax different?+

Registration tax was merged into acquisition tax in 2011, so only 'acquisition tax' is levied now. People say '취등록세' but the actual item is acquisition tax.

Why are bond costs separate?+

Vehicle registration requires buying regional development bonds — that's a bond purchase, not a tax. Selling them immediately at a discount means you bear only part of the cost. It varies by region and price.

What's the basis for used cars?+

The higher of the actual transaction price and the local-tax assessed value (by model year). Declaring too low triggers assessment-based taxation.

Is there a multi-child discount?+

From 2025, households with 2+ children under 18 get a full exemption (3 children) or 50% (2 children) on 6-seat-or-fewer passenger cars. This calculator doesn't include it — verify separately.

Until when is the eco discount valid?+

The EV/hydrogen acquisition tax discount (up to KRW 1.4M) is extended/reduced by policy. Check the current cap at purchase.

When do I pay acquisition tax?+

File and pay within 60 days of acquisition (registration). Usually handled together with vehicle registration; late payment incurs penalties.

Cautions

  • •Local Tax Act basis. Bond purchase and stamp fees are separate.
  • •Used cars use the higher of actual price/assessed value.
  • •2025 multi-child discount not included — verify separately.
  • •Eco-discount cap changes with policy.
  • •File/pay within 60 days of acquisition.

Last reviewed: 2026-05-30

Korean Car Acquisition Tax Calculator