Housing Property Tax Revenue Expected to Increase by Over 1 Trillion Won This Year

Housing property tax revenue is expected to increase by more than 1 trillion won this year due to higher officially assessed prices for multi-unit housing. The surge in assessed values, particularly in Seoul, is also projected to sharply expand the number of properties subject to the comprehensive real estate holding tax.
According to a report titled "Outlook for Housing Property Tax Revenue in 2026" submitted on the 16th by the National Assembly Budget Office (NABO) to People Power Party (PPP) lawmaker Lee Jong-uk, a member of the Land, Infrastructure and Transport Committee of the National Assembly, housing property tax revenue for this year is estimated at about 8.7803 trillion won. This is 15.3% higher than last year’s estimate of 7.6132 trillion won, an increase of 1.1671 trillion won.
Housing property tax consists of local property tax and the comprehensive real estate holding tax. NABO’s analysis projects local property tax revenue at 7.2814 trillion won, up 13.4% from last year, while comprehensive real estate holding tax revenue is expected to reach 1.499 trillion won, a 25.9% increase. In other words, the growth rate of the comprehensive real estate holding tax is nearly twice that of local property tax. The report interprets this jump as a direct result of rising officially assessed values.
This year, the average officially assessed value of standard single-family homes nationwide is expected to rise only 2.51%. In contrast, the officially assessed value of multi-unit housing is projected to climb 9.16%. The increase is especially pronounced in Seoul, where the officially assessed value of multi-unit housing is forecast to jump 18.67%.
The tax burden is also expected to rise noticeably for individual taxpayers. The average local property tax per housing unit is projected at about 358,000 won, roughly 42,000 won more than a year earlier. For the comprehensive real estate holding tax, the average burden per taxpayer is estimated at around 3.29 million won, an increase of about 670,000 won.
NABO noted, however, that it is difficult to fully reflect the actual number of taxable properties and taxpayers. The projections were therefore derived by applying changes in officially assessed values to the 2024 tax data.
Total housing property tax revenue, including single-family homes, could end up exceeding NABO’s estimates. This is because the sharp rise in officially assessed values, particularly in Seoul, is rapidly expanding the pool of homes subject to the comprehensive real estate holding tax.
Data from the Ministry of Land, Infrastructure and Transport (MOLIT) show that the number of multi-unit homes with an officially assessed value exceeding 1.2 billion won is expected to reach about 487,000 units this year, an increase of more than 53% from a year earlier. As a result, the number of people liable for the comprehensive real estate holding tax is also projected to rise sharply.
hippo@fnnews.com Kim Chan-mi Reporter