Real Estate & Tax Β· πŸ‡°πŸ‡· Korea

Korean Rental Income Tax Comparison

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Korean rental income tax: separate 14% vs comprehensive with deemed rent.

About this tool

Korean Rental Income Tax Comparison (imtae) compares 14% separate taxation vs full progressive taxation (6–45%) for Korean rental income. Enter house count, monthly rent per home, jeonse deposits (subject to deemed rent if 3+ homes), other comprehensive income (labor / business), and registered-landlord status. The tool computes (1) 14% separate tax with 50/60% expense deduction, (2) progressive comprehensive tax including other income, (3) deemed rent on deposits > β‚©300M Γ— 60% Γ— the 2.9% deposit-rate, (4) 75% deduction for long-term registered landlords, (5) 1-home non-taxable branch / >β‚©1.2B official-price taxable branch, (6) 0.2% non-registration penalty warning. Tax-saving delta is displayed.

Use cases

Scenario 1

Rental + employment income

An β‚©80M salary worker with a second home renting at β‚©1M/month sees the 14% separate vs 24% progressive comparison side by side.

Scenario 2

3-home jeonse-deposit deemed rent

For a 3-home landlord with β‚©500M total jeonse deposits, see how deemed rent on the β‚©200M excess (60% Γ— 2.9%) hits progressive taxation.

Scenario 3

Long-term registration savings

Compare tax with vs without long-term landlord registration (8+ years, 75% deduction) to inform the registration decision.

Scenario 4

1-home expensive-property taxable case

For a single home with official price β‚©1.5B, the tool auto-branches to the taxable rule (vs the 1-home non-taxable default).

Features

  • Auto compare 14% separate vs progressive comprehensive
  • Auto deemed-rent on deposits > β‚©300M for 3+ homes
  • Registered-landlord deduction sim (75% long-term / 30% short)
  • Small-home exclusion (≀ β‚©200M official + ≀ 40㎑)
  • 1-home non-taxable branch (taxable if > β‚©1.2B)
  • 0.2% non-registration penalty warning
  • Share URL + copy result text

Frequently asked

Q. If rental income ≀ β‚©20M, is separate taxation always better?
A. Not always. With low other income and a 6% / 15% bracket, comprehensive can be better. The tool simulates both and recommends.
Q. What’s the deemed-rent formula?
A. (Total deposits βˆ’ β‚©300M) Γ— 60% Γ— the prescribed deposit rate (2.9% for 2026). Not applied below 3 homes or below β‚©300M.
Q. Penalties for not registering as a landlord?
A. A 0.2% surcharge applies on unregistered rental income, and the expense deduction drops from 60% to 50% under separate taxation. Both are auto-applied.
Q. Can I file with the result directly?
A. It’s decision-support only. For actual filing, use Hometax’s comprehensive-income simulation or consult a CPA.

Sources / references

Related tools

How we run it / disclaimer

This tool is advisory and does not constitute legal, tax, medical, or financial advice. All calculations and document generation run in your browser; inputs are never sent to a server. Ads follow Google AdSense policy and are kept separate from tool accuracy.