Don’t Forget! September Property Tax Deadline Approaches

The end of September marks an important deadline for homeowners and property owners in South Korea. The second installment of property taxes must be paid by September 30, with penalties for late payments. This blog explores the details of property tax, including how it’s calculated, payment options, and what happens if you miss the deadline.

Property tax is one of the key local taxes in South Korea, and it’s due twice a year for homeowners—once in July and again in September. This tax applies to land, buildings, homes, ships, and aircraft. Homeowners usually split the annual payment into two parts, while landowners pay in one lump sum in September. If the total tax amount is less than 200,000 KRW, the full payment can be made in July.  

Those who miss the payment deadline of September 30 will face a penalty of 3%, and for amounts over 450,000 KRW, an additional 0.66% per month will be added. Taxpayers are encouraged to use credit cards to pay, as there are no additional fees for local taxes paid this way. Credit card companies often offer incentives like interest-free installment plans or cashback rewards for these payments.  

Property tax is calculated based on the official government-announced value of the property and the "fair market value ratio," which influences how much of the property’s value is taxed. This ratio is typically around 60%, but the government reduced it to 45% for single homeowners in recent years to alleviate the burden as property values rise.

As the September 30 deadline for property tax approaches, it’s essential for homeowners and landowners to be aware of their obligations. Missing the payment not only incurs penalties but could also lead to additional financial burdens. Make sure to check your local tax notice and use available payment options to stay on top of this important financial responsibility.