CalKit

Rental Income Tax Calculator

Calculate rental income tax.

원
채
종합과세 세액
한계세율 6%
792,000원

안내

분리과세 불가연 2천만원 초과 시 종합과세 대상

종합과세 내역

임대소득24,000,000원
필요경비 (50%)−12,000,000원
과세표준12,000,000원
소득세720,000원
지방소득세72,000원
총 세금792,000원
실효세율3.3%

Overview

Rental Income Tax in South Korea applies to income from leasing real estate. Housing rental income of KRW 20 million or less annually may elect separate taxation at 14%, while income over KRW 20M is subject to comprehensive taxation at progressive rates (6-45%). Commercial rental income is always subject to comprehensive taxation. Deemed rental income from security deposits may also be taxable.

Formula

Separate Tax (housing, up to KRW 20M): Tax = (Income - Expenses - Basic Deduction KRW 4M) x 14%. Expense ratios: registered 60%, unregistered 50%. Comprehensive: rental income combined with other income at 6-45% progressive rates. Deemed Rent = (Total Deposits - KRW 300M) x 60% x Term Deposit Rate / 365 x Rental Days.

How to Use

  1. 1Enter total annual rental income (sum of monthly rents).
  2. 2Enter security deposit (jeonse) amounts.
  3. 3Select whether the rental is registered.
  4. 4Choose between separate taxation or comprehensive taxation.
  5. 5Click Calculate to see expenses, tax base, and calculated tax.

Tips

  • ✔For housing rental income under KRW 20M, you can choose the more favorable option between separate (14%) and comprehensive taxation.
  • ✔Registered rental properties get a 60% expense ratio vs. 50% for unregistered.
  • ✔Owners of 3+ homes are taxed on deemed rental income from security deposits exceeding KRW 300M total.
  • ✔Commercial rental income is not eligible for separate taxation and must be reported comprehensively.
  • ✔The filing deadline is May 31 (comprehensive income tax return).

FAQ

Q. Which is better: separate or comprehensive taxation?

If your other income pushes you into a high bracket (24%+), separate taxation at 14% is favorable. If your other income is low, comprehensive taxation may result in a lower rate. Compare both scenarios.

Q. What is deemed rental income?

For owners of 3+ homes with total security deposits exceeding KRW 300M, 60% of the excess is multiplied by the term deposit interest rate to calculate deemed rental income, even if no actual rent is received.

Q. What are the tax benefits of rental registration?

Registered rentals receive a 60% expense ratio (vs. 50%) and a KRW 4M basic deduction (vs. KRW 2M) under separate taxation. However, mandatory rental period and rent increase limits must be observed.

Q. What happens if housing rental income exceeds KRW 20 million?

Separate taxation is no longer available. All rental income is combined with other comprehensive income and taxed at progressive rates of 6-45%.

Related Calculators

VAT Calculator

Calculate supply amount and 10% value-added tax.

Income Tax Calculator

Calculate income tax based on Korean tax brackets.

Capital Gains Tax Calculator

Calculate capital gains tax on property and stock transfers.

Gift Tax Calculator

Calculate gift tax based on amount and relationship.

Inheritance Tax Calculator

Calculate inheritance tax on inherited assets.

Freelancer Tax Calculator

Calculate withholding and income tax for freelance income.