The comprehensive real estate tax (Jongbu-se) imposed on housing has increased for the first time in three years.

The tax is expected to continue its upward trend, driven by rising government-assessed property values.

If the government proceeds with tax reforms aimed at strengthening property ownership taxes, the increase could become even more pronounced.

According to an analysis of national tax statistics released today (June 28) by the National Statistical Portal (KOSIS) of the Korea National Data Agency, the total amount of comprehensive real estate tax on housing for the 2024 tax year (the determined tax amount) was approximately 1.0876 trillion won, an increase of about 138.9 billion won (14.6%) from the previous year.

This marks the first time the determined tax amount for housing has increased based on the year of attribution since 2021, when it rose by 202.2%.

This is attributed to the rise in government-assessed property values.

In 2024, the average assessed value rose by 0.57% for standard detached houses and 1.52% for multi-unit dwellings (apartments, row houses, and multiplex houses) compared to the previous year.

An official from the National Tax Service noted that there were almost no changes to tax laws related to the comprehensive real estate tax during that period, stating, "It should be viewed primarily as a result of the rise in assessed property values."

Notably, the 2024 data shows that the tax burden increased more for owners of one or two homes than for those owning three or four.

The growth rates of the determined tax amount were 17.6% for single-home owners, 21.1% for two-home owners, 8.7% for three-home owners, and 1.8% for four-home owners.

The number of people subject to the housing comprehensive real estate tax in 2024 was 455,331, an 11.5% increase from the previous year.

This marks a return to growth for the first time in two years.

However, this figure is only 38.1% of the level seen in 2022 (1,195,430 people), when the number of taxpayers was at its peak.

The comprehensive real estate tax on housing is expected to rise further in the future.

This is because overall government-assessed property values have continued to climb since 2025.

Assessed values for standard detached houses rose by 1.97% in 2025 and 2.51% this year.

For multi-unit dwellings, the increase was even sharper, rising 3.65% in 2025 and 9.13% this year.

Given the trend in assessed values, the comprehensive real estate tax for the 2026 tax year, which is based on ownership as of June 1 and due in December, is expected to see a particularly high rate of increase.

The future pace of the tax increase will likely depend on the direction of tax reform to be announced at the end of next month.

The government is currently reviewing various measures to stabilize the housing market, including increasing supply, with real estate taxation being one of the options under consideration.

During a press conference held on the 8th to mark his first year in office, President Lee Jae-myung stated, "It is fine to own multiple properties," but added, "We must ensure they bear the corresponding burden," hinting at the possibility of strengthening ownership taxes on non-essential housing.

If the government raises the tax base or tax rates stipulated in the Comprehensive Real Estate Holding Tax Act, or increases the official market value ratio—currently at 60%—the tax could rise even more sharply in conjunction with the increase in assessed property values.

However, as housing prices have risen overall, particularly in the Seoul metropolitan area, a uniform increase in the comprehensive real estate tax based on assessed values could place a heavy burden on retirees who own a single home but have limited fixed income.

The Comprehensive Real Estate Holding Tax Act sets a cap, limiting the increase in the combined burden of property tax and comprehensive real estate tax to a maximum of 50% compared to the previous year.

It has been found that the assessed values of some apartments in the three districts of Gangnam have risen so sharply that they have already reached this cap this year.

Therefore, for these properties, raising tax rates or the official market value ratio may have little effect.

Within the government, there is speculation that a sophisticated tax reform will be implemented, focusing on increasing the ownership burden for multi-home owners or owners of ultra-high-priced properties, rather than single-home owners who are actual residents.

Kim Yong-beom, the President's Chief of Policy, recently stated at a Kwanhun Club forum that the government is repeatedly running simulations regarding real estate tax reform, including ownership taxes, and promised to set them at a "rationally acceptable level."

The government plans to finalize the direction of its real estate tax reform after gathering broad opinions, including holding a "National Public Debate on Real Estate" in the middle of next month, which will involve officials from relevant government ministries, experts, and the general public.

(Photo: Yonhap News)