Rent Deduction in Korea 2023FY: Eligibility and Benefits

Please review your lease contract and check the above items.

Did you apply for the rent deduction for 2021FY and 2022FY?

If you didn't, no worry but please contact Jz asap to get the refund.

"Monthly Rent Deduction" is a system that allows you to deduct taxes based on the monthly rent paid over a year. During the year-end tax settlement, you can apply for the deduction by preparing your resident registration certificate, a copy of the lease agreement, and proof of monthly rent payment, and submit those docs to your employer, or applying online through the National Tax Service's website.

For example, if a non-homeowner with a total annual income of 30 million won pays a monthly rent of 600,000 won for a year, they can receive a total deduction of 1,224,000 won.

Monthly Rent Deduction is available only for non-homeowners or household members with a total annual income of 70 million won or less or comprehensive income of 60 million won or less. To be eligible, you must reside in a small-scale housing such as a boarding house, officetel, or public rental housing with a floor area of 85 square meters or less and a standard value of 400 million(this amount is not a market price though) won or less. The address on the lease agreement must match the resident registration address(on your Korean ID), and the change of residence must be completed. The annual maximum limit for Monthly Rent Deduction is 7.5 million won, so please keep in mind that the deduction is only applicable within this limit.

*Deduction Rates:

Total annual income up to 55 million won: 17%

Total annual income exceeding 55 million won but not exceeding 70 million won: 15%

For more details, please send an e-mail to jz@taxjz.com or If you would like a free consultation with an English-speaking Accountant in Korea, please schedule a call at: Schedule a Call with Jz