Capital Gains Tax Calculator

The Capital Gains Tax Calculator estimates the tax liability incurred when selling real estate property in South Korea. Capital gains tax (양도소득세) is governed by the Income Tax Act and is levied on the profit realized from the transfer of assets, primarily real estate. This calculator incorporates the full complexity of Korean real estate tax law, including progressive tax rates ranging from 6% to 45%, long-term holding special deductions for properties held 3 years or more, single-home owner exemption rules, and the distinction between regulated and non-regulated areas. Additionally, the tool integrates real-time apartment trade price data from the Ministry of Land, Infrastructure and Transport, enabling users to look up actual recent transaction prices and auto-fill acquisition or sale price fields. Understanding your potential capital gains tax obligation is crucial before listing a property for sale, as the tax can significantly reduce your net proceeds. This calculator provides a transparent breakdown of every step from gross gain calculation to final tax after local income tax surcharge.

Step 1: Enter the acquisition price — the amount you originally paid to purchase the property. This should be the actual transaction price recorded in the contract. Step 2: Enter the sale price — the amount you expect to receive or have received from selling the property. Step 3: Enter deductible expenses, which include acquisition tax, real estate agent commission, legal (judicial scrivener) fees, and any capital improvement costs that increased the property's value. Note that routine maintenance and repair costs are not deductible. Step 4: Select the acquisition date and sale date. These dates determine the holding period, which is critical for calculating the long-term holding special deduction. Holding periods of 3 years or more qualify for the general deduction, while single-home owners with 3+ years can receive enhanced deductions. Step 5: Indicate whether you are a single-home owner (1세대 1주택자) and whether the property is located in a regulated area (조정대상지역). These flags determine eligibility for tax exemptions and deduction rates. Step 6: Review the comprehensive results panel, which shows capital gain, holding years, applicable deduction percentage, basic deduction, tax base, income tax, local tax, total tax, and net profit after tax. You can also use the built-in apartment trade price lookup feature to search for recent comparable transactions by region and date.

Step 1 — Capital Gain Calculation: Capital Gain = Sale Price - Acquisition Price - Deductible Expenses Step 2 — Long-term Holding Special Deduction: General real estate (non-single-home): 2% per year for years 3-15 of holding, capped at 30%. • 3 years: 6%, 5 years: 10%, 10 years: 20%, 15+ years: 30% Single-home owner (non-regulated area): 8% per year, combining 4% for holding and 4% for residency, maximum 80%. • 3 years: 24%, 5 years: 40%, 10 years: 80% (max) Single-home in regulated area: requires 2+ years of actual residency; same enhanced rate with residency verification. Step 3 — Tax Base: Tax Base = Capital Gain - Long-term Holding Deduction - Basic Deduction (2,500,000 KRW per year) Step 4 — Progressive Tax Rates: • Up to 14M KRW: 6% • 14M - 50M KRW: 15% (progressive deduction 1.26M) • 50M - 88M KRW: 24% (progressive deduction 5.76M) • 88M - 150M KRW: 35% (progressive deduction 15.44M) • 150M - 300M KRW: 38% (progressive deduction 19.94M) • 300M - 500M KRW: 40% (progressive deduction 25.94M) • 500M - 1B KRW: 42% (progressive deduction 35.94M) • Over 1B KRW: 45% (progressive deduction 65.94M) Step 5 — Final Tax: Total Tax = Income Tax + Local Income Tax (10% of income tax) Single-home exemption: If the owner held the property for 2+ years (and resided 2+ years in regulated areas), gains up to 1.2 billion KRW on the sale price are exempt from capital gains tax.

1. Timing your sale strategically can save millions in taxes. Holding a property for just a few additional months to cross the 3-year, 5-year, or 10-year threshold can unlock significantly higher long-term holding deductions. For single-home owners, the difference between 2 years 11 months and 3 years of holding can mean the difference between a 0% and 24% deduction on your capital gain. 2. Single-home tax exemption is the most powerful tax benefit in Korean real estate. If you own only one home, have held it for 2+ years, and reside in it for 2+ years (if in a regulated area), gains up to approximately 1.2 billion KRW are fully exempt. Plan your real estate portfolio with this exemption in mind — timing the sale of one home before purchasing another can preserve your single-home status. 3. Keep meticulous records of all deductible expenses. Acquisition tax receipts, agent commission receipts, judicial scrivener fees, and documentation of capital improvements (kitchen renovation, bathroom remodeling, extension construction) can significantly reduce your taxable gain. Simple maintenance like painting or wallpapering does not qualify. 4. Regulated area designations change periodically as the government adjusts housing market stabilization policies. An area that is regulated at the time of purchase may become deregulated by the time of sale, or vice versa. Check the current status at the time of sale, as it affects both exemption eligibility and deduction rates. 5. If you own multiple properties, consider the order and timing of sales carefully. The tax rate for second homes or multiple property owners can be significantly higher, with surcharges of 20-30 percentage points above the normal progressive rate in regulated areas. Consulting a registered tax accountant before selling is strongly recommended for multi-property owners. 6. Remember that this calculator provides estimates based on simplified rules. Actual tax computations may vary depending on specific exemptions, prior loss offsets, and individual circumstances. Always verify with the National Tax Service or a licensed tax professional before filing.