What Is the Monthly Rent Tax Credit — And How Do You Claim It?
Korea's monthly rent tax credit ceiling has risen to ₩12 million annually. Here's what the credit means, how much you can get back, and how to claim it.
One of the most tangible benefits in Korea's 2026 tax reform is the expansion of the monthly rent tax credit ceiling — from ₩10 million to ₩12 million annually. For a tenant paying ₩1 million per month in rent, this means 100% of their annual rent is now eligible for the credit.
What is a tax credit, exactly?
Korean tax law distinguishes between two types of relief. A deduction (소득공제) reduces the income you're taxed on, while a credit (세액공제) reduces the actual tax bill directly. Credits are more powerful. A 15% tax bracket earner with a ₩1M deduction saves ₩150,000, but a ₩1M credit saves ₩1,000,000 outright.
How much can you actually get back?
The credit rate varies by income. Those earning under ₩55M get 17%, while the ₩55M–₩70M bracket gets 15%. With ₩12M in annual rent (₩1M/month): the lower bracket gets ₩2.04M back (₩12M × 17%), the upper bracket gets ₩1.8M (₩12M × 15%).
How do you claim it?
Submit documents during year-end settlement (January–February) through your employer, or file directly during the May comprehensive income tax period. Required documents: a copy of the lease agreement, your resident registration certificate (showing the rented address), and bank transfer records or receipts for monthly rent payments.
For renters in their 20s and 30s, this credit is real money — hundreds of thousands to over ₩2 million back at year-end. You don't have to own property to benefit from the tax system. You just have to know where to look and file the paperwork.