Korean Rental Income Tax Calculator
Tax on residential rental income under separate taxation, including deemed rent on jeonse deposits at the 3.1% deposit interest rate.
Your rentals
Result
Your deposits are taxed too. With 3 or more non-small homes and total deposits above ₩300M, deemed rent of ₩13.02M counts as income.
Gross income
₩13.02M
deemed rent + rent received
Tax base
₩4.51M
50% expenses · ₩2M deduction
Total tax
₩694,540
5.33% effective
| Deemed rent | ₩13.02M |
|---|---|
| Rent received | ₩0 |
| Gross income | ₩13.02M |
| Necessary expenses (50%) | − ₩6.51M |
| Basic deduction | − ₩2M |
| Tax base | ₩4.51M |
| Income tax (14%) | ₩631,400 |
| Local income tax (10%) | ₩63,140 |
| Total tax | ₩694,540 |
Deemed rent is (total deposits − ₩300M) × 60% × days rented ÷ 365 × 3.1%, less the financial return on the deposits. The rate comes from 소득세법 시행규칙 제23조제1항, which sets it at 31 per 1,000 a year. Small homes (40㎡ or less of residential floor area and an assessed value of ₩200M or less) are excluded from the home count until 2026-12-31, so leave them out when entering the number. Separate taxation is only available where rental income is ₩20M or less.
How this works
What it calculates
Money you receive for letting a home is income, and income tax applies. Everyone knows monthly rent counts, but a deposit counts too once certain conditions are met. A deposit sitting in the bank would earn interest, and the law treats that notional interest as rent you received. This is deemed rent, and it is where landlords who let only on jeonse and assume there is nothing to report get caught.
Enter how many homes you own, the total of the deposits and any monthly rent, and the calculator works out the deemed rent, adds the monthly rent and gives your gross rental income. If that income is within the range that allows separate taxation, it deducts the standard expenses and the basic deduction and applies the separate tax rate to show the tax.
Who uses it and when
Couples who together own 3 or more homes and let at least one of them on jeonse, before the May comprehensive income tax filing. Once the deposits total more than ₩300 million you are in scope even if you collect no monthly rent at all, so deposit-only landlords in particular should check.
It also helps anyone weighing whether to register as a rental business. Registration raises the expense rate and the basic deduction, which cuts the tax on the same income sharply, but it comes with obligations, so it is a trade-off. Flipping the registration switch and comparing the two tax figures makes the decision clearer.
Legal basis and how the maths runs
Deemed rent is set by 소득세법 시행령 제53조. Where a couple owns 3 or more homes and their deposits total more than ₩300 million, 60% of the excess, scaled by the fraction of the year the homes were let, is multiplied by the term deposit interest rate and treated as rent. 시행규칙 제23조 fixes that rate at 3.1% a year. Any interest or dividends actually earned on the deposits are subtracted. When counting homes, a small home of 40㎡ or less with a standard value of ₩200 million or less is left out, though that concession has an expiry date.
If monthly rent plus deemed rent comes to ₩20 million or less a year, 소득세법 제64조의2 lets you tax it separately from your other income at 14%. Standard expenses are 60% of gross for a registered rental home and 50% otherwise, and if your other comprehensive income excluding this is ₩20 million or less, a basic deduction of ₩4 million (registered) or ₩2 million (unregistered) comes off as well. The remainder is taxed at 14%, with local income tax at 10% of that on top, 15.4% in all.
A worked example
Say a couple owns 3 homes, lets all of them on jeonse for deposits totalling ₩1 billion, collects no monthly rent, let them for the whole year, has ₩10 million of other income and has not registered as a rental business. Subtracting ₩300 million leaves ₩700 million; 60% of that is ₩420 million, and at 3.1% the deemed rent is ₩13,020,000. With no monthly rent that is the gross income, and being under ₩20 million it qualifies for separate taxation.
Taking off 50% expenses of ₩6,510,000 and the ₩2 million basic deduction leaves a taxable base of ₩4,510,000. At 14% the income tax is ₩631,400, plus ₩63,140 local income tax, ₩694,540 in total. Had the homes been registered rentals, expenses at 60% would be ₩7,812,000 and the deduction ₩4 million, shrinking the base to ₩1,208,000 and the tax to ₩186,032. Registration alone cuts the bill to less than half.
Common mistakes
The biggest is assuming jeonse is not income and skipping the return. With 3 or more homes and deposits over ₩300 million, tax applies even with no monthly rent. The second is counting only the homes in your own name. The count for deemed rent is per couple, so homes in your spouse's name are included.
The third is taking the basic deduction for granted. It is available only when your other comprehensive income, excluding rental, is ₩20 million or less, so higher earners do not get it. The fourth is applying the separate rate when income exceeds ₩20 million. Above that line the income is combined with everything else and taxed at progressive rates, and this calculator's figure no longer applies. It also covers homes only; commercial lettings use a different deemed rent method and a different tax treatment.
The deemed rent formula
(total deposits − ₩300M) × 60% × days rented ÷ 365 × 3.1%
- · The ₩300M is measured against your total deposits, not per home.
- · The 3.1% rate is the 31 per 1,000 a year set by 소득세법 시행규칙 제23조제1항, and it moves with market rates each year.
- · Returns you earned by investing the deposits in savings or shares are subtracted from deemed rent, to avoid taxing the same money twice.
How separate taxation is computed
| Registered | Not registered | |
|---|---|---|
| Expense rate | 60% | 50% |
| Basic deduction | ₩4M | ₩2M |
| Rate | 14% | 14% |
The basic deduction is only available where your global income, excluding this separately-taxed rental income, is ₩20M or less.
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Common questions
- I only let on jeonse. Do I still owe tax?
- You can. If you and your spouse together hold 3 or more non-small homes and total deposits exceed ₩300M, 60% of the excess multiplied by the deposit interest rate is treated as rent received. That is deemed rent, and it applies even if not a won of rent comes in.
- What is the deemed rent interest rate?
- 3.1% a year. 소득세법 시행규칙 제23조제1항 sets it as "31 per 1,000 a year". It moves with market rates each year, so check the figure for the year you are filing.
- What counts as a small home?
- A home counts as small only if it meets both conditions: residential floor area of 40㎡ or less and an assessed value for the tax period of ₩200M or less. Such homes are excluded from the home count until 2026-12-31, so leave them out when entering the number of homes.
- How much better off is a registered rental home?
- The expense rate rises from 50% to 60%, and the basic deduction from ₩2M to ₩4M. In exchange you take on obligations such as keeping rent increases within 5%.
- Does everyone get the basic deduction?
- No. It only applies where your global income, excluding this separately-taxed rental income, is ₩20M or less. On a comfortable salary the deduction is zero and the tax rises noticeably. Change the 'other global income' field above and the difference shows immediately.
- What if rental income is above ₩20M?
- Then separate taxation at 14% is unavailable and the income is combined with your other income at progressive rates of 6% to 45%. This calculator works on the separate-taxation basis, so above ₩20M it shows a reference figure and says so.
- Is it the same for a foreign landlord?
- If you are a tax resident, yes. 소득세법 attaches no nationality condition. For a non-resident, rental income from Korean property is Korean-source income and must be reported, with any tax treaty taking precedence. If you leave Korea but keep letting the property, appoint a tax manager so filings and notices continue.
Explainers that cover this
The assumptions and the statutes behind them, written out.
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Proposed changes that touch this calculation
The 2026 tax reform bill has 9 items bearing on this calculation, the earliest from 2026-10-01. None of it has passed the National Assembly, so the calculator still applies the law as it stands.
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