Multi-Homeowner Capital Gains Surtax Returns in May 2026

On May 9, 2026, the suspension of the capital gains tax surtax for multi-homeowners will expire. This is a critical issue that will bring significant changes not only for multi-homeowners but also for the entire housing market. It is crucial to establish a wise response strategy amidst complex tax regulations and market trends.

Multi-Homeowner Capital Gains Tax Surtax: What Changes?

When the suspension of the capital gains tax surtax for multi-homeowners (a tax imposed on profits from selling assets like real estate) expires, the tax rate applied to multi-homeowners will significantly increase. During the current suspension period, general tax rates apply, but additional taxes will be imposed from the expiration date.

According to a Newsis report on January 23, 2026, two-homeowners will face an additional 20 percentage points (p) added to the basic tax rate, while those with three or more homes will face an additional 30 percentage points. Considering that 10% of the capital gains tax is separately imposed as local income tax, the maximum capital gains tax rate for multi-homeowners could reach 82.5% (NTN Daily). This effectively means that most of the sales profit might have to be paid in taxes.

[Example] Changes in Multi-Homeowner Capital Gains Tax Rates (For Taxable Income Exceeding 500 Million KRW)

| Category | During Suspension Period (Current) | After Suspension Ends (After May 9, 2026) |

| :----------------- | :--------------------------------- | :---------------------------------------- |

| Single-Homeowner | Basic Tax Rate (6% ~ 45%) | Basic Tax Rate (6% ~ 45%) |

| Two-Homeowners | Basic Tax Rate (6% ~ 45%) | Basic Tax Rate + 20%p (26% ~ 65%) |

| Three or More Homes | Basic Tax Rate (6% ~ 45%) | Basic Tax Rate + 30%p (36% ~ 75%) |

| Maximum Rate | 45% (49.5% including local income tax) | 75% (82.5% including local income tax) |

※ The tax rates in the table above exclude the 10% local income tax; the actual tax payable will include this local income tax.

History and Significance of the Multi-Homeowner Capital Gains Tax Surtax Suspension

The multi-homeowner capital gains tax surtax system was introduced in 2004 during the Participatory Government era. Its primary goals at the time were to curb real estate speculation and stabilize the market. Since then, this system has been repeatedly suspended, strengthened, and eased, serving as a key instrument reflecting the real estate policy stances of successive governments.

Notably, during the Moon Jae-in administration, the surtax rate was significantly increased to cool down an overheated real estate market. In contrast, following the inauguration of the Yoon Suk-yeol administration, the surtax suspension was temporarily implemented from