Housing property tax revenue in Korea is projected to increase by more than 1 trillion won this year as assessed property values surge, particularly for apartments in Seoul, according to a new analysis. Experts warn that the actual tax burden could grow even larger if the government raises the assessment realization rate and fair market value ratios as part of measures to stabilize housing prices.
According to a report titled "2026 Housing Property Tax Revenue Forecast" submitted by the National Assembly Budget Office to Rep. Lee Jong-wook of the People Power Party on January 16, nationwide housing property tax revenue is estimated at 8.78 trillion won ($6.4 billion) this year. This represents a 15.3% increase, or 1.17 trillion won, from last year's 7.61 trillion won.
The analysis attributes the increase to sharply rising assessed values centered on Seoul apartments. Property taxes are calculated by multiplying assessed values by certain ratios, meaning higher assessed values automatically translate to heavier tax burdens.
According to earlier data from the Ministry of Land, Infrastructure and Transport, assessed values for standard detached houses nationwide rose 2.51% on average from last year, while apartment assessed values climbed 9.16%. Seoul apartment assessed values jumped 18.67%.
Based on these figures, the Budget Office estimates property tax revenue will reach 7.28 trillion won, up 13.4% or 859.3 billion won from the previous year. The comprehensive real estate tax is projected at 1.5 trillion won, a 25.9% increase of 307.9 billion won.
Accordingly, the average property tax per housing unit is expected to rise 42,267 won to 358,160 won, while the average comprehensive property tax per taxpayer is projected to surge 676,211 won to 3.29 million won.
The Budget Office based its estimates on 2024 tax data with assessed value change rates applied, as it is difficult to accurately determine the number of taxable properties and taxpayers at this point. In 2024, there were 20.33 million property tax cases for housing, with 455,331 comprehensive property tax payers.
Actual tax revenue is likely to exceed projections as the effect of a sharp increase in newly subject households was not reflected. According to the Land Ministry, the number of apartments with assessed values exceeding 1.2 billion won—the threshold for comprehensive property tax for single-home owners—reached 487,362 units, up 53.3% or 169,364 units from 317,998 units the previous year.
A Ministry of Economy and Finance official said, "When assessed values rise, property tax revenue inevitably increases," but added, "The Budget Office data may be overestimated as it does not apply the property tax assessment cap system or comprehensive property tax burden limit system."
The widening gap between Seoul and regional real estate markets is also evident in this year's property tax projections. Seoul accounts for 85.3%, or 995.9 billion won, of the total increase in property tax revenue. Seoul alone is projected to generate 4.59 trillion won in property taxes, representing 52.3% of the national total. Gyeonggi Province follows with 2.05 trillion won, then Busan with 379.7 billion won and Incheon with 292.5 billion won, though all significantly trail Seoul. Meanwhile, Daegu (219.5 billion won), Gwangju (124.2 billion won), Daejeon (138 billion won), and Jeju (56.5 billion won) saw property tax revenues decline from the previous year as assessed values fell.
The overall property tax burden could increase further going forward. The government is reportedly considering raising the assessment realization rate and fair market value ratios as part of real estate market stabilization measures following the end of the capital gains tax surcharge moratorium for multi-home owners. Higher realization rates would push up assessed values that serve as the basis for property taxes. Combined with higher fair market value ratios, tax burdens are expected to grow even more. The current comprehensive property tax fair market value ratio remains at its minimum level of 60%.
"With assessed values surging, property taxes are already increasing by more than 1 trillion won this year, effectively raising taxes on the public," Rep. Lee said. "The government must present solutions to ease tax burdens and housing instability."
Meanwhile, the number of objections filed regarding assessed values has surged sharply this year given the large increase in assessed values.
According to data submitted by the Land Ministry to Rep. Lee's office, there were 14,561 objections filed regarding apartment assessed values this year, the highest since 2022 (9,337 cases) when the nationwide assessed value increase rate was 17.2%. Objection filings tend to see more requests for downward adjustments in years with high increases to reduce tax burdens, while years with falling or modest increases see more requests for upward adjustments to increase jeonse deposit limits or mortgage borrowing capacity. With this year's sharp rise in assessed values, downward adjustment requests aimed at reducing taxes are expected to dominate.
