Inheritance Real Estate Valuation Method Calculator

Compare reporting inherited Korean real estate at the official published price (supplementary method) versus an appraised market value under Inheritance and Gift Tax Act Articles 60-61 and Enforcement Decree Article 49. Weighs the added inheritance tax against the future capital gains tax saved (Income Tax Act) plus the appraisal fee, and flags the NTS appraisal program and the six-month valuation period.

Tax scenario inputs

Enter Korea-related tax assumptions in KRW. The model uses a simplified effective-rate estimate.

Taxable transfer value

₩50,000,000

Estimated gross tax

₩5,000,000

Net tax after adjustment

₩5,000,000

After-tax amount

₩95,000,000

Effective rate

5%

This English page is a simplified Korea-related tax planning estimate. It does not reproduce official forms, progressive brackets, exemptions, local surtaxes, filing classifications, or eligibility decisions. Confirm current Korean rules before filing, paying, investing, or restructuring.

Related calculators

🇰🇷 This calculator is based on Korean tax law — the Inheritance and Gift Tax Act, its Enforcement Decree, and the Income Tax Act (2026 rules).
Amounts are in Korean won (KRW). It is a simplified planning estimate, not an official filing. Consult a licensed Korean tax advisor before filing.

What is the Inheritance Real Estate Valuation Method calculator?

When you inherit an apartment, house, commercial building or land in Korea, you must report its value for inheritance tax.
You can generally report either the “official published price” (the supplementary valuation method — usually lower than market) or an “appraised value” (fair market value from a licensed appraiser).
The choice matters because the reported value becomes the property’s acquisition cost for a future sale — so it moves your inheritance tax and your future capital gains tax in opposite directions.

This calculator adds up the inheritance tax, the future capital gains tax, and the appraisal fee under each method, then tells you which method results in the lower total tax burden and by how much, under 2026 rules.

Who is this for?

  • • Heirs preparing an inheritance tax return on real estate
  • • Anyone deciding between the official price and a paid appraisal
  • • People planning to sell inherited property within a few years
  • • Owners of inherited commercial buildings or vacant land worried about NTS reassessment
  • • Anyone wanting a rough read before meeting a tax advisor

Why the valuation method is the key to tax planning

The value you report at inheritance becomes the acquisition cost for the future sale.
Capital gain equals “sale price − acquisition cost.” If you report a low official price, the acquisition cost is low, the taxable gain is large, and the future capital gains tax is high.
If you report an appraised market value, today’s inheritance tax rises, but the higher acquisition cost shrinks the future capital gains tax.

The trade-off

  • • Official price: lower value → less inheritance tax, but a low acquisition cost → more capital gains tax later
  • • Appraisal: market value → more inheritance tax + an appraisal fee, but a high acquisition cost → less capital gains tax later
  • • What decides it: your inheritance-tax marginal rate vs. the capital-gains rate, whether and when you sell, and the appraisal fee

If inheritance tax is nil (0% marginal rate), an appraisal raises the acquisition cost without adding inheritance tax, so it usually wins.
If your inheritance-tax rate is high but you will hold the property (no sale), an appraisal only adds inheritance tax, so the official price usually wins.

Statutory valuation methods (legal basis)

The Inheritance and Gift Tax Act values inherited property at fair market value as of the date of death (Article 60).
Market value includes sale, expropriation, auction, public-sale and appraisal prices; only when market value cannot be determined is the supplementary method used.

1. Market value and the valuation period (Art. 60, Decree Art. 49)

  • • Valuation date: the date of death for inheritance; the gift date for gifts
  • • Valuation period: six months before and after the date of death (for gifts, six months before to three months after)
  • • Recognized market value: sale-comparison, appraisal, expropriation, auction or public-sale prices within that period
  • • Transactions outside the period (e.g., within two years before) can still be recognized after review by the valuation deliberation committee

2. Supplementary method = official price (Art. 61)

  • • Land: individually published land price
  • • Housing: individual house price (detached) / apartment price (condominiums)
  • • General buildings: the annual building standard value published by the NTS Commissioner
  • • Officetels & commercial buildings: the combined land-and-building value published by the NTS Commissioner
  • • Leased property is valued at the greater of the rent-capitalized value and the above

3. Reporting at appraised market value

An appraised value counts as market value.
You normally average two appraisals, but for property with a standard value of KRW 1 billion or less, a single appraisal is accepted (Decree Art. 49).

  • • Pros: higher acquisition cost cuts future capital gains tax; a fixed market value removes reassessment risk
  • • Cons: more inheritance tax now, plus the appraisal fee

How it is calculated

The calculator computes the total tax burden under each method.
Inheritance tax is estimated as “value × marginal rate” (treating this property as the top slice of the taxable estate), and the future capital gains tax is computed with the acquisition cost set to the official price or the appraised value.

Inheritance tax (marginal-rate basis)

  • • Official-price tax = official price × marginal rate
  • • Appraisal tax = appraised value × marginal rate
  • • Added inheritance tax = (appraisal − official) × marginal rate

Future capital gains tax (Income Tax Act)

  • • Gain = sale price − acquisition cost (inheritance value) − expenses
  • • Long-term holding deduction = gain × rate (6% at 3 years, +2%p/year, capped 30% at 15 years)
  • • Tax base = gain − long-term deduction − KRW 2.5M basic deduction
  • • Tax = base × progressive rate (6–45%) − quick deduction, plus 10% local income tax
  • • Holding under 2 years triggers short-term surcharge rates (60–70% housing, 40–50% other) with no long-term deduction

Finally it compares the official-price total (inheritance + capital gains) against the appraisal total (inheritance + capital gains + appraisal fee) and reports the net benefit and the recommended method.

How to use

Step 1: Enter property details

Choose the property type and enter the official price (supplementary value) and the expected appraised value (market value).

Step 2: Pick the inheritance-tax marginal rate

Select the bracket that reflects your other estate assets and deductions. Choose “below threshold (0%)” if deductions leave no inheritance tax.

Step 3: Enter the sale plan

If you plan to sell, enter the expected sale price, holding years and expenses. For housing, set the one-house exemption; if you will keep it, choose “hold.”

Step 4: Review the result

See the recommended method, the net benefit, each scenario’s inheritance and capital gains tax, the appraisal fee and key cautions.

Frequently asked questions

Q. Where do I find the official price?

A. Use the Ministry of Land’s “real estate public price” portal for land, house and apartment prices.
For officetels and commercial buildings, check the standard value on the NTS Hometax.

Q. Can I report an apartment at the official price?

A. Apartments often have comparable-sale prices (from similar units) that count as market value, so a low official-price filing is difficult.
Check whether comparable sales exist within the valuation period.

Q. What is the NTS appraisal program?

A. For commercial buildings and vacant land filed at a low official price, the NTS may commission an appraisal, re-determine market value through the deliberation committee, and assess additional inheritance tax.
Weigh this reassessment risk when filing such property at the official price.

Q. What if I sell within six months?

A. A sale within the six-month valuation period can make that sale price the retroactive market value for inheritance tax.
A plan to file at a low official price can collapse, so time the sale carefully.

Q. Can I file directly from this result?

A. This is a rough comparison based on the marginal rate you enter.
Actual inheritance tax varies with personal, spouse and family-business deductions, and capital gains tax with multi-home surcharges and high-value apportionment — confirm with a professional.

Tips & cautions

  • Judge it with your sale plan: with no sale, an appraisal gives no capital-gains saving, so the official price may win.
  • Consider an appraisal for commercial/vacant land: these are NTS reassessment targets, so official-price filings can be overturned.
  • Standard value ≤ KRW 1B: a single appraisal suffices, lowering the appraisal fee.
  • Beware short-term surcharges: selling within two years of inheritance triggers surcharge rates and disallows the long-term deduction.
  • Keep records: retain the appraisal report, comparable sales and official-price evidence with your return.

Find the better valuation method for your inherited property

Enter the official price, appraised value, inheritance-tax rate and sale plan to compare the total tax burden instantly.

Based on Korea’s 2026 Inheritance and Gift Tax Act and Income Tax Act. Consult a professional before filing.