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How to Declare Monthly Rent (Wolse) for Tax Refunds

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This is often the single largest tax refund item for employees in Korea. There are 2 ways to declare it, depending on your salary level and residency conditions.

Method 1: Tax Credit - Most Beneficial​

This method is for low-to-medium income earners. The refund amount is subtracted directly from the total tax you owe.

1. New Conditions (2024 Update)​

  • Income: Total salary (Gross Salary) ≤ 80 million KRW (or Total Taxable Income ≤ 70 million KRW).
  • Housing Size/Value: National housing size (≤ 85㎡) OR the house's value ≤ 400 million KRW.
  • Address: You must have changed your residential address (on the back of your ARC or via Hometax) to the address of the rented house.

2. Refund Rates​

  • Salary ≤ 55 million KRW: 17% refund on rent paid.
  • Salary 55 ~ 80 million KRW: 15% refund on rent paid.
  • Limit: Recognized rent expenses are capped at 10 million KRW/year.

3. Documents to Submit to Your Company​

  • Rental agreement (Contract).
  • Proof of bank transfer (Transaction records).
  • Family Relation Certificate or Certificate of Residency (for foreigners).

Method 2: Cash Receipt Deduction​

This method is for high-income earners (> 80 million KRW) or those whose housing size/value exceeds the limits for Method 1.

  • Benefit: Monthly rent is counted as a "Cash Spending" item with a 30% income deduction rate.
  • Procedure: You must register on Hometax yourself so that the National Tax Service issues a monthly cash receipt.

Steps on Hometax:​

  1. Access Hometax.
  2. Navigate to: 상담·불복·고충·제보·기타 (Consultation/Appeal/Grievance...) > 주택임차료(월세) 현금영수증 발급신청 (Application for Rent Cash Receipt).
  3. Fill in the contract information and upload a photo of the rental agreement.

[!IMPORTANT] You can only choose one of these two methods. In most cases, Method 1 (Tax Credit) yields a significantly larger refund if you qualify.