Car Tax Calculator

About Korean vehicle tax

Korea's annual vehicle tax (자동차세) for non-commercial passenger cars is calculated primarily from engine displacement (cc), with a per-cc rate that increases in tiers as displacement grows, plus a discount that grows each year as the vehicle ages, reflecting its declining value and usage. This tool estimates your annual vehicle tax, local education tax surcharge, and the split between the two semi-annual payment installments.

How the tax is calculated

The tool applies Korea's tiered standard rate (80 won/cc up to 1,000cc, 140 won/cc up to 1,600cc, 200 won/cc above that) to your entered engine displacement to find the base annual tax, then applies an age-based discount starting in the vehicle's 3rd year (5 percentage points per year, capped at a 50% maximum reduction for older vehicles) to reflect the standard depreciation schedule. Local education tax (30% of the discounted vehicle tax amount) is added on top, and the combined total is then split into the two standard installments due in June and December.

Frequently asked questions

Why does tax increase in tiers rather than a single flat rate per cc?

The tiered structure (80/140/200 won per cc across three brackets) means larger-displacement vehicles pay a progressively higher marginal rate on the portion of displacement in each higher bracket, similar in concept to progressive income tax — this generally makes larger, higher-displacement vehicles pay proportionally more tax than smaller ones.

Why does an older car get a tax discount?

The age-based discount reflects the standard assumption that a vehicle's value, usage, and road impact typically decline over time, so Korean tax policy reduces the annual tax burden accordingly as a car ages past its 3rd year, up to a maximum 50% reduction for sufficiently old vehicles.

Why is the tax split into June and December payments?

Korea's standard system divides the annual vehicle tax into two semi-annual installments (roughly covering January-June and July-December) rather than one full annual payment, spreading the payment burden across the year — vehicle owners can also often choose to pay the full annual amount upfront in January for a small discount, though this calculator shows the standard two-installment breakdown.