you can save up to 4.6% on your taxes in January by taking advantage of the car tax deferral program. here's everything you need to know about car tax deferral, from how to apply, to the discount rate, to the refund process.

summary Car tax deferral is a way to pay a year's worth of taxes at once and get a discount. apply between January 16 and 31 to get the most benefit, with a 4.6% deduction. you can apply through Weetax or your local council office, and if you're already a regular taxpayer, your payment will be automatically sent to you without you having to apply.

what is the car tax deferral system?

owning a car comes with an annual maintenance cost. on average, between 1 and 1.5% of the vehicle's price is spent on maintenance, and car tax is a typical local tax. it's usually due in June and December, but you can save money by taking advantage of a deferred payment plan.

car tax deferral is a savings scheme that allows you to pay a year's worth of tax in one payment and receive a percentage of the tax deduction. the earlier you apply, the bigger the discount, so it's most beneficial to apply in January.

compare discounts by time of year

you can file for deferred payment four times: January, March, June, and September. here's how the deduction rates compare

when to apply application period deduction rate january 16th through 31st 4.6 percent march 16th to 31st 3.8 june 16th to 30th 2.5 september 16th to 30th 1.3

january has the highest discount rate at 4.6%, so if you're looking for ways to save money on your car taxes, January is a great time to pay in full.

how to apply for a car tax deferral

apply online

you can easily apply for car tax deferment on the website or the SmartWithax mobile app without any documents. to pay Seoul car tax, you need to use the Seoul Local Tax Online Payment System or the Seoul Tax Payment App.

offline application

if you don't have access to the internet, you can apply in person at your local city or county office or by phone.

existing taxpayers

if you have previously paid your car taxes, you will automatically receive a payment statement with the deducted amount without having to apply. simply review the payment and pay within the due date.

how car tax is calculated

the amount of car tax depends on the displacement and age of the vehicle. the tax rates for non-commercial passenger vehicles are as follows

displacement band tax per cc 1000cc or less 80 won 1600cc or less 140 KRW over 1600cc 200 KRW

a 30% local education tax is added to the car tax to determine the final tax amount. for example, for a newly registered mid-sized car with a displacement of 3000cc, the basic tax of 600,000 won is added to the local education tax of 180,000 won, which is about 78,000 won. if you apply the 4.6% deduction when paying in January, you can save about 36,000 won.

used car tax reduction system

the used car differential taxation system allows for additional discounts depending on the age of the vehicle. non-commercial passenger cars that are more than three years old are eligible for a 5% discount on car tax each year, up to a maximum of 50%.

vehicle age reduction rate 3 years old or older 5 percent 4 years or older 10 5 years or more 15 12 years or more 50

car tax refund process

you can get a car tax refund for the remaining period if you transfer or scrap your vehicle after paying the tax. the refund process varies by municipality, and in some areas the refund is automatic without a separate application. please check with your local government or WeTax for specific details.

frequently asked questions

Q. when is the last day to apply for a deferred car tax payment? A. January deferred payments are available from the 16th to the 31st. you must file during this time to take advantage of the maximum deduction rate of 4.6%.

Q. can Seoul residents apply on Withax? A. Seoul residents must use the Seoul Metropolitan Government's local tax online payment system. weetax is for residents outside of Seoul.

Q. i paid last year, do I need to apply again this year? A. If you are a current taxpayer, you will be automatically sent a payment statement with the amount deducted without applying. you can pay with that payment.

Q. what happens to my taxes if I sell my vehicle after making a deferred payment? A. You may be eligible for a refund of the remaining car tax. contact your local government to find out the refund process.

Q. is the car tax discount rate the same every year? A. The discount rate can change by policy, so it's best to check the latest information each January when you make your payment.

key takeaways

paying your car tax in arrears is a savings scheme where you can get a maximum discount of 4.6% if you apply between January 16 and 31. it's easy to apply through WeTax or your local council office, and it's a great way to reduce the cost of maintaining your car each year.

if you have any other tips on how to save money on your car tax, let us know in the comments. we'll keep you informed.