Korea Car Tax Calculator

Estimate Korean annual vehicle ownership tax by displacement or flat rate, including the age reduction, local education tax, half-year installments, and the January prepayment discount.

Vehicle details

Cars aged 3+ years get an age reduction (up to 50% at 12 years).

Total annual tax

₩442,000

Prepay in January: pay ₩421,757

Save ₩20,243 (4.58%)

Breakdown

Base vehicle tax₩400,000
Age reductionAge 5 years — 15%− ₩60,000
Local education tax30% of vehicle tax (private cars)₩102,000
Total per year₩442,000
Half-year installments₩221,000 + ₩221,000

Prepayment discount by month

WhenDiscountYou saveYou pay
January4.58%₩20,243₩421,757
March3.76%₩16,619₩425,381
June2.52%₩11,138₩430,862
September1.26%₩5,569₩436,431

Paying in January gives the largest discount. Prepayment is requested through Wetax (wetax.go.kr) and renews automatically each year.

This calculator is based on Korean annual vehicle ownership tax (jadongchase) under the 2026 Local Tax Act. It is a planning estimate. Electric and hydrogen cars use a flat tax, and a reform of EV vehicle tax is under discussion.

Related calculators

What is Korean annual vehicle tax?

Annual vehicle ownership tax (jadongchase) is a local tax charged to the owner of a vehicle in South Korea. It is paid in two installments, in June and December, and the amount depends on the vehicle type, engine displacement, and use.

Under the 2026 Local Tax Act, passenger cars are taxed by displacement (cc), while electric and hydrogen cars are taxed at a flat amount. This calculator applies the displacement rate, the age reduction, and the annual prepayment discount automatically, for both private and commercial vehicles, and for cars, buses, trucks, special vehicles, and motorcycles.

Korea-based calculator

This tool is based on Korean vehicle tax rules under the 2026 Local Tax Act. It is intended for people estimating the cost of owning a vehicle in Korea, and it is a planning estimate.

  • Useful before buying a new or used car to estimate running costs
  • To see how much the annual prepayment discount saves
  • To compare an electric car against a combustion car
  • To check the age reduction on an older car
  • For owners of commercial taxis, buses, and trucks

2026 vehicle tax rates

Private passenger car

A private passenger car is taxed in three displacement bands. The larger the engine, the higher the rate per cc.

DisplacementPer cc
1,000cc or lessKRW 80
1,000cc to 1,600ccKRW 140
Over 1,600ccKRW 200

Example: a 2,000cc car is 2,000 times 200, or KRW 400,000 per year, plus KRW 120,000 local education tax, for a total of KRW 520,000.

Electric and hydrogen cars

Electric and hydrogen cars have no displacement, so they are taxed at a flat amount: KRW 100,000 per year for private use, far below a combustion car.

UsePer year
PrivateKRW 100,000
CommercialKRW 20,000

Electric cars do not receive the age reduction, but the flat amount is already low. A reform of the EV vehicle tax is under discussion, so the rate may change.

Commercial passenger car

A commercial passenger car (such as a taxi) is taxed at much lower rates per cc, in more detailed bands.

DisplacementPer cc
1,600cc or lessKRW 18
1,600cc to 2,500ccKRW 19
Over 2,500ccKRW 24

Age reduction

A private combustion passenger car held for 3 or more years receives an age reduction. From the third year it falls by 5% per year, up to a maximum of 50%.

AgeReductionYou pay
1 to 2 years0%100%
3 years5%95%
5 years15%85%
8 years30%70%
10 years40%60%
12+ years50%50%

Example: a 2,000cc private car held 10 years pays 40% less, so KRW 400,000 becomes KRW 240,000. Electric and hydrogen cars use a flat tax and get no age reduction.

Annual prepayment discount

Paying a full year in advance earns a discount. The 2026 base rate is 5%, and the effective discount depends on when you pay. Paying in January gives the largest discount, about 4.58%.

WhenEffective discountApply
Januaryabout 4.58%Jan 16 to 31
Marchabout 3.76%Mar 16 to 31
Juneabout 2.52%Jun 16 to 30
Septemberabout 1.26%Sep 16 to 30

Apply through Wetax (wetax.go.kr) or your local office. Once requested, prepayment applies automatically each year without a new application.

Local education tax

A private passenger car pays a local education tax in addition to the vehicle tax. It equals 30% of the vehicle tax and is paid together with it.

Example (2,000cc private)

  • Vehicle tax: 2,000cc times KRW 200 = KRW 400,000
  • Local education tax: KRW 400,000 times 30% = KRW 120,000
  • Total: KRW 520,000 per year

Commercial vehicles, buses, trucks, special vehicles, and motorcycles do not pay local education tax.

Frequently asked questions

When is the tax paid?

Twice a year: the first half from June 16 to 30 and the second half from December 16 to 31. Vehicles with an annual tax under KRW 100,000 are billed once, in June.

Where do I apply for the prepayment discount?

Online at Wetax (wetax.go.kr) or by contacting your local district office. Once requested, it applies automatically each year.

What happens to a prepayment if I sell the car?

If you transfer or scrap the car after prepaying, the tax for the remaining period is refunded automatically, usually within one to two months.

How is a hybrid taxed?

A hybrid has a combustion engine, so it is taxed by displacement like a normal car, not at the flat electric rate. A separate acquisition tax break may apply.

What if I do not pay?

A 3% surcharge applies after the deadline, plus 0.75% per month (up to 60 months). Long non-payment can lead to license-plate seizure.

Tax-saving tips

  • Prepay in January: the largest discount (about 4.58%) makes January the best time to pay.
  • Mind the displacement: the gap between 1,600cc and over is large (KRW 140 vs 200 per cc).
  • Consider an electric car: the flat tax plus acquisition tax breaks add up.
  • Check the age reduction: for an older car, confirm the reduction is on your bill.
  • Use Wetax: review your payment history and estimated tax in advance.

Other vehicle types

Vehicles other than passenger cars are taxed at flat amounts, by size and use for buses and by load capacity for trucks.

  • Buses: private large KRW 115,000, small KRW 65,000; commercial express bus KRW 100,000
  • Trucks: private from KRW 28,500 (1 ton or less) up to KRW 157,500 (10 tons or less)
  • Special vehicles: private large KRW 157,500, small KRW 58,500
  • Motorcycles: over 125cc, private KRW 18,000 (125cc or less is exempt)

These types do not pay local education tax and do not receive the age reduction.