Comprehensive real estate tax on ultra-high-priced and non-owner-occupied homes to be gradually increased starting next year

The government has decided to gradually raise from next year the comprehensive real estate tax on highpriced homes worth more than 3.2 billion won, nonresident singlehome owners, and multihome owners. This was included in the 2026 tax reform plan announced on the 3rd. According to the reform plan, the basic deduction for resident singlehome owners will increase from 1.2 billion won to 1.4 billion won, but the basic deduction for nonresident singlehome owners will be lowered from 1.2 billion won to 900 million won. For the comprehensive real estate tax on multihome owners, deductions will be reduced based on home value, and the taxation system will also shift from being centered on the number of homes to being centered on home value. Tax rates will also rise in some brackets. In particular, the tax base brackets for highpriced one and twohome owners will be gradually raised through 2028, and the same tax rates as those for multihome owners will be applied. The government also plans to adjust the longterm special deduction for capital gains tax to focus on actual residence, and to temporarily ease until 2028 the heavier capital gains tax on homes in adjustment target areas for multihome owners.