Under a 2026 tax reform plan, married couples who co-own a single home will face the same comprehensive real estate holding tax standards as multi-home owners starting in 2028, sparking widespread market interest and anticipated policy debates. According to government officials on December 8, the administration plans to raise the comprehensive real estate holding tax fair market value ratio uniformly from the current 60% to 70% beginning in 2027. Moving into 2028, authorities will further increase this ratio to 80% for all owners except single-home households.
Tax Ratio Adjustments and Legal Classifications for Co-Owners
Unlike property taxes that use individual taxation principles, comprehensive real estate holding tax laws treat co-owning spouses as two distinct property owners. Government officials explained that since married couples sharing a single home title do not legally qualify as a single-person household under the statute, applying the 80% fair market value ratio is correct. Consequently, co-owners will lose eligibility for single-home exemptions under the 2028 rules. A government official stated, “1-home married co-owners are not single-home households as defined by law, so applying an 80-percent fair market value ratio is appropriate.”
Simulated Tax Burdens and Price-Point Reversals
Higher tax ratios do not mean increased tax bills across every property value bracket. Starting in 2028, a 6 million won cap on long-term residency tax deductions takes effect, creating a potential reversal where co-ownership becomes more advantageous than single ownership at specific price points. Simulations show that for properties with official assessed prices of 19억 2천만원 이하 및 32억원 초과, co-owners will shoulder lower tax burdens than those receiving single-homeowner tax privileges. Traditional individual taxation frameworks already benefit co-owners by allowing duplicate basic deductions and lower tax brackets through split tax bases, though sole owners benefit from senior and long-term holding deductions reaching up to 80% on high-value properties.
Did You Know? In 2025, the total number of comprehensive real estate holding tax payers reached 48만 1479명 individuals, while apartments in Seoul valued between 14억 초과 and 22억 이하 accounted for 9.5% of the capital’s housing stock as of 2026.
Exemptions, Relief Measures, and Market Repercussions
Under the reform plan, co-owners with a 50% share enjoy tax exemptions up to an approximate market value of 26억원, or an 18억원 official assessed price. When occupying the home, each spouse receives a 9억원씩 basic deduction totaling 18억원, surpassing the 14억원 basic deduction granted to single owners. For homes in regulated adjustment areas, co-owners face the 80% ratio unless they apply for single-homeholder special provisions to secure a 70% ratio. Non-adjustment area co-owners automatically receive the 70% ratio without needing a special application.
Expert Insight: With market conditions remaining unstable—evidenced by weekly apartment price gains of 0.26% in Seoul—analysts suggest that homes priced under 20억원 이하, and potentially up to 30억원 이하, carry lighter tax loads that could attract steady buyer demand.
Meanwhile, the government is reviewing relief measures for single-home owners who fail to meet strict actual residency requirements. Former Office for Government Policy Coordination chief Koo Yun-cheol noted that officials will flexibly review enforcement decree revisions if valid reasons prevent actual occupancy, such as schooling, medical treatment, or job relocations, potentially extending the current three-year maximum grace period.
Frequently Asked Questions
Why are married couples who co-own a single home treated like multi-home owners?
Under comprehensive real estate holding tax laws, taxation follows an individual assessment principle rather than a household principle, meaning co-owning spouses are counted as two separate property owners rather than a single-person household.
When will the fair market value ratio changes take effect?
The government plans to raise the ratio from 60% to 70% in 2027, and then to 80% for non-single households starting in 2028.
Are all co-owning couples guaranteed to pay higher taxes under the reform?
No. Simulations indicate that co-ownership can yield lower tax burdens than single ownership for properties valued below 19억 2천만원 이하 및 32억원 초과 in official assessed price due to newly established deduction caps and tax base distributions.
How will these upcoming comprehensive real estate holding tax adjustments influence your residential property decisions ahead of 2028?
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