The current seismic design code uses a displacement-based design scheme for structural designs of special RC shear wall. But the displacement-based design in the current seismic design code does not consider contributions of yield deformation. In this study, the evaluation method of displacement capacity for RC shear walls was analyzed and applied to the parametric study for the lateral deformations of RC shear walls. Based on results of parametric analyses with various design conditions, the contribution of yield deformation to the deformation capacity of RC shear wall was analyzed. It was presented that, for RC shear walls in tall buildings, the yield deformation increased as the building height increased and reached more than 50% of total deformation. Therefore, for the reasonable design of special RC shear wall in tall buildings, the yield deformation should be included in the displacement-based design process.