Last Year's Local Tax Revenue Reaches 120.9 Trillion Won...Up 6.8 Trillion Won from Previous Year

Last year's local tax revenue was provisionally tallied at 120.9 trillion won, an increase of 6.8 trillion won from the previous year's 114.1 trillion won. This is the highest level since it first surpassed 100 trillion won in 2020, driven by factors such as improved corporate earnings and increased real estate transactions.

On the 24th, the Ministry of the Interior and Safety announced the "Provisional Local Tax Revenue Performance for 2025," which contained these details.

Looking at last year's revenue performance by major tax item, acquisition tax came to 27.5 trillion won, up 1.6 trillion won from the previous year, and local consumption tax reached 26.8 trillion won, an increase of 900 billion won. Local income tax amounted to 22.9 trillion won, up 2.9 trillion won from the previous year.

The Ministry of the Interior and Safety analyzed, "The increase in local tax revenue is the result of the new government's efforts to expand private investment and create jobs through its economic revitalization policies, which have produced visible outcomes in the form of higher local tax receipts."

It went on to explain, "Acquisition tax increased significantly due to a rise in real estate transactions, including home sales, while local consumption tax grew as strong government measures to boost domestic demand helped restore consumer sentiment in the private sector."

The ministry also stated, "Local income tax appears to have led the overall increase in revenue performance, as improvements in corporate earnings coincided with quantitative growth in the labor market."

In contrast, registration and license tax revenue came to 2 trillion won, down by around 100 billion won compared with 2024. This is believed to be because the revenue, which had surged in 2024 due to expanded government capital injections into organizations such as LH, fell back in 2025 to the 2023 level.

Detailed figures on local tax revenue for 2025 will be finalized after local governments complete their revenue settlements and are scheduled to be released around October this year through platforms such as Local Finance 365.