The Monthly Rent Tax Credit in Korea Takes More Than a Move-In Report — Lease and Registration Addresses Must Match, and Rent Is Prorated by Day in a Move Year

The income limit and credit rates, as the law states them

Article 95-2(1) applies to employees whose total salary for the year is KRW 80 million or less. Even with a lower salary, you are excluded if your comprehensive income amount exceeds KRW 70 million. The rate is 15% of rent paid, and 17% if total salary is KRW 55 million or less (comprehensive income of KRW 45 million or less). Eligible rent is capped at KRW 10 million a year, so the maximum credit is KRW 1.7 million at 17% and KRW 1.5 million at 15%. If your rent is KRW 700,000 a month and your salary is KRW 50 million, 17% of KRW 8.4 million, or KRW 1,428,000, comes straight off your tax.

"No home" is judged for the household, not just you

You must own no home on the last day of the tax year, December 31. Article 95(1) of the Decree treats you, your spouse, and lineal relatives and siblings who live at the same address and share living expenses as one household. A spouse counts as the same household even if you live apart. So even if no home is in your name, a parent you live with or a spouse living elsewhere who owns a home means your household is not a no-home household. The credit normally goes to the head of household; if the head does not claim this credit, the housing savings deduction, or the housing rental or mortgage loan deductions, other household members may claim it. Couples who live apart for work may, under Article 95-2(2), each claim when their cities, counties or districts differ (combined cap of KRW 10 million), but check the details with the National Tax Service.

The home must be 85 square meters or less, or assessed at KRW 400 million or less

Article 95(2) of the Decree requires a home of national housing size, or one with a standard assessed value of KRW 400 million or less. Meeting either one is enough. Residential officetels and goshiwon facilities are included, and for multi-household houses the floor area per unit is used. Under the amendment of February 27, 2026, if you have three or more dependent children or grandchildren, the area limit widens to 100 square meters. The land attached to the home also must not exceed 5 times the building area in urban areas or 10 times elsewhere. Assessed value is calculated differently by building type, so confirm it through Hometax or your tax office.

If the lease address and the registration address differ, the claim fails

Item 3 of the same paragraph requires that the address on the lease and the address on the resident registration certificate be the same. A move-in report you never filed, or a different unit number, breaks the condition. Getting a fixed date stamp is not listed as a legal requirement. The move-in report and fixed date protect your deposit rather than your taxes; for the order and the reason, see our guide to the move-in report and fixed date. The contracting party must also be you, your spouse or a dependent, so rent under a parent's name counts only if the parent is your basic-deduction dependent.

In a year you move, rent is prorated by day

Under Article 95(3) of the Decree, eligible rent is the total rent due over the lease term, divided by the number of days in the lease term, multiplied by the days you rented in that tax year. For example, for a lease from July 1, 2026 to June 30, 2028 at KRW 600,000 a month, total rent is KRW 14.4 million, the term is 731 days, and 2026 has 184 rental days, so eligible rent is about KRW 3.62 million. At 17% that is about KRW 616,000. If you moved twice in one year, calculate each lease separately.

How to file, and what to do if you missed it

The credit applies only when you claim it. Most people give the company's year-end settlement staff a copy of the lease, the resident registration certificate, and rent transfer records; check the forms and deadlines with your company and the National Tax Service guidance. Rent paid in 2026 is settled in January and February 2027. If you missed it, you can recover it through the May comprehensive income tax return or an amended-return claim filed within five years after the statutory filing deadline. If you also claim the credit card deduction, see our guide to the credit card deduction threshold, and compare everything against the year-end settlement deduction checklist. Rent on which the credit was claimed is listed in the enforcement rules among items excluded from the credit card deduction base, so even rent paid by card cannot be counted twice.

The government proposal is not final

News reports said the government's 2026 tax reform proposal, announced August 3, 2026, would raise the eligible rent cap from KRW 10 million to KRW 12 million. It is a proposal that becomes final only after National Assembly review and, according to reports, would apply to rent paid from 2027, so this year's settlement keeps the current KRW 10 million cap. If you are negotiating a rent increase, also read our guide to the 5% cap on renewals.

Order of steps

Step 1, confirm that every member of the household owned no home on December 31. Include family at the same address and any home in your spouse's name.

Step 2, compare the lease address and the registration address down to the building and unit number. If they differ, fix the move-in report first.

Step 3, confirm the floor area and assessed value, and keep transfer records of rent sent to the account named in the lease.

Step 4, in a year you moved, prepare a daily proration worksheet for each lease and submit the documents at year-end settlement. Tax rules change every year, so confirm the final rules with the National Tax Service (126) and Hometax. This article is general information and does not replace individual tax advice.