The National Tax Service (NTS) will provide individual calculations for property tax benefits to couples who jointly own a single home starting this year. The agency plans to refund taxpayers who have overpaid due to a lack of awareness about special provisions or an inability to assess their tax benefits accurately.
NTS Commissioner Lim Kwang-hyun announced on September 13 via social media platform X (formerly Twitter) that "for the first time this year, the NTS will calculate and inform joint homeowners of the most favorable property tax amounts." He added, "We will also identify and refund those who have overpaid due to a lack of knowledge about these provisions."
From September 16 to 30, couples who jointly own a single home can apply for special provisions regarding property tax. If they apply, they can deduct 120 million won from the publicly assessed value of their home, similar to single homeowners, and receive tax deductions based on their age and ownership duration.
Conversely, if they do not apply for the special provisions, they will not receive age and ownership duration deductions, but can benefit from a maximum combined deduction of 180 million won based on each spouse's share. This means that the tax burden will vary depending on the home's value, the taxpayers' ages, and the duration of ownership.
The special provisions for couples jointly owning a single home were introduced in 2021. The comprehensive real estate tax was implemented in 2006 based on a household aggregation method, but after a constitutional court ruling in 2008 deemed it unconstitutional, it shifted to individual taxation. This change led to joint homeowners facing higher taxes than single homeowners, prompting the introduction of the special provisions.
Previously, taxpayers had to determine which method was more beneficial for them. Taxpayers unfamiliar with tax laws had to access the Home Tax system, conduct simulations, and decide whether to apply for or cancel the special provisions, making it difficult to verify the accuracy of the calculations. This process was particularly burdensome for older taxpayers who are less comfortable with online environments.
For the first time this year, the NTS will analyze individual tax burdens in advance and provide tailored estimates of the most favorable tax amounts. According to the NTS, approximately 5,700 taxpayers are identified as benefiting from applying for the special provisions, while about 2,900 existing applicants would benefit from canceling their applications.
The NTS will notify these individuals of their most favorable estimated tax amounts via mobile or mail. Taxpayers can use the estimated amounts as a reference to apply for or cancel the special provisions from September 16 to 30. The most favorable calculated tax amounts will be automatically notified during the regular property tax assessment in November.
Taxpayers who do not make a decision during the September application period can still report in a favorable manner during the regular property tax reporting period in December.
Commissioner Lim stated, "We will actively seek out those who have overpaid due to a lack of knowledge about the special provisions or an inability to assess their benefits accurately. In line with the government's proactive administrative approach, we will expand tailored guidance in areas where taxpayers find it difficult to make judgments, reducing taxpayer inconvenience and ensuring they do not miss out on benefits."
* This article has been translated by AI.
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