NTS Introduces Favorable Tax Pre-Notification for Jointly Owned Homes: How to Choose and Apply

The National Tax Service (NTS) has introduced a tailored pre-notification service for married couples co-owning a single home, automatically comparing and presenting the most favorable Comprehensive Real Estate Holding Tax option. Ahead of the annual special tax application window running from September 16 to September 30, taxpayers can now bypass complex manual calculations to determine whether to maintain joint ownership taxation or opt for single-owner special treatment.

Background and Calculation Differences for Joint Homeowners

Previously, married couples holding a single residential property in joint names had to manually run simulations on the Hometax calculator to determine their optimal filing method. The tax liability differed substantially depending on official assessed home values, holding period, and age brackets:

• Default Joint Ownership: Each spouse receives a 900 million KRW deduction, totaling 1.8 billion KRW in tax-exempt threshold. However, age-based and long-term holding tax credits are not applicable under this rule.
• Single-Owner Special Election: While the basic deduction drops to 1.2 billion KRW, qualifying taxpayers can claim up to an 80% combined tax credit based on age (up to 40%) and holding duration (up to 50%) for the spouse designated as the primary taxpayer.

Under the new automated advisory system, both estimated tax amounts are clearly contrasted on digital and paper notices, effectively eliminating overpayment risks and calculation burdens for homeowners.

Frequently Asked Questions (FAQ)

Q1. When is the application deadline for the joint-ownership special tax regime?

The annual application window for the Comprehensive Real Estate Tax single-owner election runs from September 16 through September 30 via the Hometax website, Son-tax mobile app, or local district tax offices.

Q2. At what property value is opting for single-owner treatment more advantageous?

For homes assessed under 1.8 billion KRW, maintaining default joint taxation yields zero holding tax. When the assessed valuation exceeds 1.8 billion KRW and the owner qualifies for 50% or more in combined senior and long-term holding deductions, electing the single-owner special treatment typically results in lower taxes.

Q3. Does the special election automatically renew in subsequent years?

Taxpayers who previously elected the special status do not need to reapply unless property shares or homeownership statuses have changed. However, if the latest automated notification reveals that standard joint taxation has become more advantageous, an application to cancel the special election must be filed before September 30.