Sean Daily

This is an English version of our Korean article, based on public information as of October 4, 2026. Please check the official sources below for the latest details.

Read the original Korean article

If you are an office worker living on monthly rent, you have probably wondered at least once whether you can receive the monthly rent tax credit (월세 세액공제) in year-end settlement. There are several conditions, so many people overlook it, or, conversely, expect the credit without meeting the requirements. Based on National Tax Service (NTS, 국세청) guidance, we go through the conditions, amounts, documents and application steps in order. Eligibility for many Korean programs depends on residency or registration status in Korea, so please confirm on the official site.

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Who can receive it

The monthly rent tax credit is a program that directly reduces the tax of employees who pay monthly rent. The table below extracts only the key requirements from NTS guidance. If even one does not match, it is hard to receive the credit, so check them one by one.

Item	Criterion	Easy to be confused about
Income	Total salary of KRW 80 million (comprehensive income of KRW 70 million) or less	Judged by the total salary of the employee claiming the credit.
No home	Householder of a household without a home as of December 31	If your spouse or parents living with you own a home, you are excluded.
Rented home	A home at or below the national housing size (85㎡) or with an official standard price of KRW 400 million or less	Residential officetels and gosiwon (고시원) are also included.
Address	The address on the lease contract and the address on the resident registration certificate must be the same	Homes without a move-in report cannot receive the credit.
Contract name	In your own name or the name of a basic-deduction dependent (spouse, etc.)	You must actually live there and bear the rent yourself.

There is a point to watch out for in the no-home determination. According to NTS guidance, a resident and spouse are considered the same household even if they manage their living expenses separately, so if your spouse owns a home, you are not eligible. Also, if you bought a home during the year and became a homeowner as of December 31, rent you paid before buying the home cannot be claimed either.

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How much can you get back

The rate depends on total salary. If total salary is KRW 55 million or less, it is 17% of the rent paid; if it is above KRW 55 million and up to KRW 80 million, it is 15%. The rent eligible for the credit is up to KRW 10 million a year, so even if you paid more rent, anything beyond that is not counted.

Total salary	Rate	Annual rent of KRW 6 million (KRW 500,000 per month)	Annual rent of KRW 10 million or more (limit)
KRW 55 million or less	17%	KRW 1.02 million	KRW 1.7 million
Above KRW 55 million, up to KRW 80 million	15%	KRW 900,000	KRW 1.5 million

A tax credit is subtracted directly from the tax you owe. However, if you already owe little tax, the credit may not turn directly into a refund. It is best to check the exact amount in your company’s year-end settlement result or on Hometax.

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Required documents and application steps

The NTS lists three required documents: a copy of the resident registration certificate (주민등록표등본), a copy of the lease contract, and proof of rent payment such as a bank transfer receipt or deposit slip. Submit these to your company at year-end settlement. The requirements the NTS guides to do not include the landlord’s consent.

The steps are easy this way. First, use the requirement table above to check whether you qualify. Then check whether the address on the contract matches the address on the certificate, and organize the account records from which you sent the rent. Finally, submit the documents according to your company’s year-end settlement schedule.

If you want to keep a cash receipt for your rent, you can apply for a housing rent (monthly rent) cash receipt on Hometax (Sontax, 손택스). The guidance says that if you attach the lease contract and your rent expense records, a tax office employee reviews them and then issues the receipt. People who are not eligible for the monthly rent tax credit, for example those whose total salary exceeds KRW 80 million or who own a home as of December 31, can also use this cash receipt for the credit card and similar income deduction.

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Confusing situations, sorted out

A confirmed date is not needed. Even for a monthly rent contract with a deposit, for tax year 2014 onward you can receive the credit even if you did not obtain a confirmed date. If the contract term has ended but the contract has been implicitly renewed and you keep paying rent, you can receive the credit by submitting the existing contract and your rent payment records.

Even if the contract is in the name of a basic-deduction dependent such as your spouse, you can receive the credit if you registered your residence at that home and actually bore the rent and sent it to the landlord. Foreigners have also been able to receive the credit, if they meet the requirements, since tax year 2021.

You cannot receive both the monthly rent tax credit and the credit card and similar income deduction through the cash receipt; you must choose just the one that is more favorable to the employee. Also remember that if the householder received the monthly rent tax credit or a housing fund deduction, other members of the same household cannot receive it separately.

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Common mistakes and the proposed 2027 amendment

The mistakes are mostly similar: expecting the credit without reporting your move-in, a contract address that differs from the certificate address, handing over rent in cash without leaving payment proof, and buying a home during the year and becoming a homeowner. If even one applies, the credit may be difficult to get, so check in advance.

It is also worth knowing what may change in the future. The 2026 tax reform proposal contains a proposed amendment to raise the rent limit eligible for the credit from KRW 10 million to KRW 12 million a year, and to apply 17% to young people aged 15-34 regardless of total salary. However, this is a proposed amendment awaiting National Assembly review, and it applies from rent paid on or after January 1, 2027. This year’s year-end settlement is calculated under the existing criteria.

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Frequently asked questions

Q. I have a deposit but did not get a confirmed date. Does that mean no credit?

You can receive it. According to NTS guidance, for tax year 2014 onward you can receive the monthly rent tax credit even if you did not obtain a confirmed date.

Q. I could not report my move-in. Can I receive the credit?

No. Even if you meet all the other requirements, the address on the lease contract and the address on the resident registration certificate must be the same, so a home without a move-in report is not eligible.

Q. If I get a monthly rent cash receipt, can I receive it together with the tax credit?

You must choose only one. The cash receipt income deduction for rent paid and the monthly rent tax credit cannot be combined, and you can choose whichever is more favorable to the employee.

Q. Do the 17% rate for young people and the KRW 12 million limit apply from this year?

No. The proposed amendment applies to rent paid on or after January 1, 2027, and is still awaiting National Assembly review. Rent you paid this year is calculated under the existing criteria, with a limit of KRW 10 million a year.

This article compiles public information for informational purposes and is not tax advice. Whether you can claim a deduction and the amount depend on personal circumstances such as income, home ownership and household composition, so please be sure to check with NTS Hometax and the NTS call center (126) or a tax professional.