One-home owners 82% likely to see decrease in comprehensive real estate tax… average 420,000 won reduction expected

The government's comprehensive property tax reform (종합부동산세) is expected to reduce the property tax burden for 1-sea generation homeowners owning a single primary residence, according to a recent analysis. Nearly 82% of 1-sea generation homeowners with a single primary residence are projected to see a decrease in their property tax, which could amount to an average reduction of 42,000 won per person.

According to the analysis conducted by the National Financial Stability Research Institute in their 2026 Tax Reform Impact Report on Housing, out of the 15,265,154 homeowners who are subject to property tax, 81.6% or 12,464,848 individuals are likely to experience a reduction in property tax. However, 36,490 of these individuals will be exempt from property tax. This is due to the expanded basic tax exemption of 14 billion won in this reform plan.

The property tax reduction for those who fall under this category will primarily be due to the expanded basic tax exemption rather than the increase in tax rates or the improvement in the fair market value assessment rate (70%→60%). Of the individuals whose property tax is reduced, 3,6490 will not be subject to property tax at all. This is because the expanded basic tax exemption has been extended to a larger range of property owners.

Accountant Jeong Jeong-seok, who authored the report, stated that the average reduction in property tax for 1-sea generation homeowners is estimated to be 42,000 won. However, for those with property values above the tax threshold of 7 billion won (corresponding to 33 billion won in market value), property tax will increase by an average of 532,000 won per person.

On the other hand, for 1-sea generation homeowners who are not eligible for the special 1-sea generation homeowner tax treatment, overall property tax will increase by an average of 180,000 won per person.

For those with properties valued at 3 or more homes, an average property tax increase of 411,000 won is expected. The accountant notes that the basic tax exemption expansion's impact on 1-sea generation homeowners will be less significant than that on other taxpayers because of the offsetting effects of the new tax rates and the improved fair market value assessment rates. He also cautioned that the general direction and approach of the property tax reform may conflict with the interests of 1-sea generation homeowners.