Single-Person Households Renting Two Homes: Each Has Its Own Reporting Rules

Check First: Are You the Landlord or the Tenant?

Even With the Same "Two-House Rent," the Reporting Routes Are Completely Different

Even for a single-person household with monthly rent contracts in two different locations, the tax reporting method depends entirely on whether you are the landlord or the tenant. Landlords must classify rental income as business income and file a comprehensive income tax return every May, while tenants claim the monthly rent tax credit during year-end tax settlement without any separate filing. The two processes differ in procedure, timing, required documents, and tax rates, so you must first determine which category you fall into.

Keep in Mind That Tax Law Revisions Are Underway

The tax information provided here reflects general rules as of January 2025, and requirements related to deductible expenses are changing through 2025–2026. Before filing, it is essential to confirm the latest figures and requirements via the National Tax Service hotline (126), HomeTax, or a tax professional.

Situation A — A Landlord Renting Out Two Homes: Reporting Rental Income

Report as Business Income, Consolidated Every May

Rental income from housing is classified as business income and reported as part of the comprehensive income tax return. The filing period runs from May 1 to May 31 each year, covering the previous year's income. Electronic filing is available on HomeTax by selecting comprehensive income tax under the tax filing menu.

The process can be summarized in three steps. First, within 20 days of starting the rental business, you must register as a rental business operator at the district office or community service center — since the two properties are in different areas, two separate registrations are required, one for each local government. Next, file the rental business year-end electronic report by March 10 of the following year, then file the comprehensive income tax return by May 31. Use the housing rental business industry code (611001), and since the two homes are in different areas, enter each as a separate business location, generating two business codes. Fortunately, housing rentals are exempt from value-added tax, so there is no VAT filing burden.

Compare Separation Taxation and Comprehensive Taxation by Running the Numbers Both Ways

You can choose your taxation method when filing. Separation taxation applies when you own two or fewer homes cumulatively and levies a 14% tax rate on gross rental income (before deductible expenses) of up to 200 million won. This rate was raised from 9% to 14% starting in 2025. Comprehensive taxation is the default method, applying the progressive comprehensive income tax rates of 6–45% with no limit on the number of rental properties.

One caution: starting in 2025, requirements for separation taxation have been tightened, with reforms proposed or implemented toward applying criteria such as one home per household per region, two or fewer homes, and actual residence requirements. According to tax accountants, renting out two homes often benefits from separation taxation (14%), but after the tightened requirements, reviewing the actual-residence and regional criteria is essential. For small-scale rentals — annual rental income of 20 million won or less — the basic deduction alone substantially reduces the effective tax burden.

Deductible Expense Ratios and a Sample Calculation

The blanket deductible expense ratio applied to rental income varies by the number of homes. For two homes, a basic deduction rate of 63% applies, rising to 68% with supporting documentation. For example, if you receive 500,000 won per month in Area A and 600,000 won per month in Area B, annual rental income is 13.2 million won ((500,000 + 600,000) × 12). Deducting 63% as expenses leaves 8.316 million won, giving a taxable base of roughly 4.884 million won; subtract the 1.5 million won comprehensive income basic deduction, and approximately 3.38 million won is taxed. It is not a sum small enough to ignore.

Documents to Prepare When Filing and Account Management Principles

Required documents include the comprehensive income tax final return form, a list of business equipment, and the lease contracts for the business premises. The documents required and the scope of recognized expenses vary depending on whether you registered as a rental business operator and whether the blanket expense ratio applies. Rental income must be kept consistent between the account holder's name and the bank account; borrowing someone's name or lending an account can violate laws related to name-lending.

Situation B — A Tenant Living in Two Homes: The Monthly Rent Tax Credit

Handled through year-end tax settlement, with refunds of up to 990,000 won possible

Tenants are not subject to rental income reporting. Instead, they claim the monthly rent tax credit during year-end tax settlement, available to salaried workers with total annual salary of 70 million won or less (based on tax year 2024). The credit is 12% of monthly rent paid, capped at 7.5 million won per year, allowing a tax credit of up to 990,000 won. However, the limits and salary thresholds may change starting from the 2025 tax year, so verification is needed.

The filing process is simple. Rent payment records are automatically retrieved through the HomeTax Year-End Tax Settlement Simplification Service; simply select them to apply for the credit. If the records do not appear in the simplified service, you can manually claim the credit using a landlord confirmation letter or the lease contract.

The Second Home May Be Excluded From the Credit

There is a key restriction. The monthly rent tax credit presupposes the one-home-per-household requirement for household members without a home, so if you have simultaneous contracts in two locations, only one may be recognized — or both may be denied. The second home is likely to be excluded from the tax credit. Also, if the landlord fails to properly report rental income, the tenant's credit may be denied — remember that the landlord's diligent reporting indirectly affects your refund.

Filing Checklist: Easy-to-Miss Points

Build Your Documentation From the Moment of Contract

Landlords should keep lease contracts and rent payment records, while tenants should keep transfer receipts and rent payment histories. Landlords should also note a 2025 revision allowing rent reductions with refunds to be deducted from income. On the local tax side, property tax and local income tax are levied separately in each of the two areas, and the comprehensive real estate holding tax is assessed on a combined basis for the two homes.

Reference Standards and Final Verification Channels

Tax practice references minimum living costs by household size and regulations on assets exempt from seizure (Articles 8(3) and 8-2 of the Housing Lease Protection Act). The minimum living cost for a single-person household is approximately 1.05 million won (1,054,316 won). Ultimately, even for the same "two-home rent," the reporting routes for landlords and tenants are entirely separate. The surest approach is to first determine which type you are, then verify the revised requirements through the National Tax Service (126) and HomeTax before filing.