According to data released Tuesday by the National Tax Service, about 480,000 homeowners in Seoul have faced a total of 2.8 trillion won in aggregate property taxes this year. This represents 50.6 percent of people subject to comprehensive property tax nationwide and 48.9 percent of the combined amount. Gyeonggi had the second highest number of taxpayers subject to comprehensive property taxes and a combined amount after Seoul. In Gyeonggi, about 238,000 homeowners faced combined aggregate property taxes of 1.2 trillion won. These statistics were established on the basis of the residence of taxable persons. For example, if a Busan resident owns property in Seoul, the number of taxable people and the combined amount of tax in Busan will increase.
The Seoul metropolitan area had the highest number of people who received full property tax bills and a total amount of taxes, but the proportion of capital areas is declining. Last year, Seoul accounted for 58.9% of people subject to comprehensive property tax nationwide and 65.4% of the combined amount. In 2010, when related statistics started to be compiled, the proportion of people subject to overall property tax was 71.1%, and the combined amount was 74.6% in Seoul.
The overall property tax is expected to continue increasing next year. This is due to the continuing upward trend in the real estate market and an expected increase in the listed price of homes and the fair market value rate.
The government has said it does not plan to increase overall property tax any further at this time, as it has raised the tax rate and the threshold for tax increases this year. The overall property tax, however, is expected to be removed or stepped up depending on the outcome of next year’s presidential election. Ruling Democratic Party presidential candidate Lee Jae-myung has pledged to introduce a tax on land ownership and People’s Power Party candidate Yoon Seok-youl says he will revise the rules property tax, if elected.