Mrs Lin lets an older apartment and asks us the same question every year: “Does the way I let it really change the tax that much?” Yes, and not by a little. The same property, the same rent, taxed as an ordinary letting or under public-interest landlord (公益出租人) or social housing sublet-and-manage (社宅包租代管) status, can differ by more than five times a year.
This guide works the 2026 rules for the three statuses using one rent figure throughout. For how to choose in practice, see three ways to let.
Three key numbers
- NT$180,000 a year tax-free for public-interest landlords and social housing landlords, being NT$15,000 per property per month.
- 60% necessary-expense rate under social housing sublet-and-manage, the highest of the three and the biggest saving.
- House tax and land value tax at owner-occupier rates for both public-interest landlords and social housing landlords.
These follow the Ministry of Finance standard for necessary expenses on property rental for ROC year 114 (2025) and Housing Act Articles 15 and 23 (住宅法第 15、23 條), updated July 2026.
The three statuses side by side
The difference comes down to two things: the tax-free allowance and the necessary-expense rate. An ordinary landlord has neither advantage. A public-interest landlord gains the allowance. A social housing landlord has the same allowance plus a higher expense rate.
| Status | Allowance (per property per month) | Necessary-expense rate | House tax / land value tax |
|---|---|---|---|
| Ordinary landlord (lets independently) | None | 43% | General rates |
| Public-interest landlord (recognised automatically when the tenant’s rent subsidy is approved, or on application) | NT$15,000 | 43% | Treated as owner-occupied (house tax about 1.2%, land value tax about 2‰) |
| Social housing sublet-and-manage (let to a disadvantaged household) | NT$15,000 | 60% | Treated as owner-occupied (house tax about 1.2%, land value tax about 2‰) |
Our view: Many landlords think “sublet-and-manage” means the NT$6,000 monthly allowance and 53% expense rate. That is the ordinary arrangement for general tenants under Article 17 of the Rental Housing Market Development and Management Act (租賃住宅市場發展及管理條例第 17 條), which offers less. The social housing scheme compared here, under Housing Act Article 23, lets to economically or socially disadvantaged households and carries the same NT$15,000 monthly (NT$180,000 annual) allowance as public-interest status. The difference is the expense rate, 60% against 43%, but you must contract with an operator and the tenant must be a disadvantaged household.
For foreign nationals: The owner-occupier house tax and land value tax rates that these two statuses mirror normally require household registration (戶籍) by the owner or family, and the rent subsidy that triggers public-interest status is a domestic programme. A foreign owner should not assume these rates apply. Plan on the general rates and ask us through our contact page.
Ordinary landlord: the 43% expense rate
An ordinary landlord has no allowance. Rental income is multiplied by 57% (after deducting 43% as necessary expenses) and added to comprehensive income tax. With no receipts, the Ministry of Finance’s flat 43% rate applies and no invoices are needed. If actual costs such as mortgage interest, repairs, house tax and land value tax exceed 43% of the rent, itemising saves more.
Worked example: Mrs Lin’s rent is NT$20,000 a month, NT$240,000 a year. Using the 43% deduction: NT$240,000 × 57% = NT$136,800 of rental income. At a 12% marginal income tax bracket: NT$136,800 × 12% = about NT$16,416 of tax.
Our view: In the first year after buying, mortgage interest, renovation and agency fees are high, so itemising usually saves more. Once costs fall, switch back to the 43% standard deduction in the second year. You can choose again each year; it is not locked in.
Public-interest landlord: recognised when the tenant gets a subsidy
As soon as the tenant applies for and is approved for a rent subsidy, the local government recognises the landlord as a public-interest landlord without a separate application, and the NT$15,000 monthly (NT$180,000 annual) allowance applies. A landlord can also apply to the city government directly rather than waiting for the tenant.
Worked example: the same NT$20,000 a month, NT$240,000 a year. First deduct the NT$180,000 allowance: NT$240,000 − NT$180,000 = NT$60,000. Then deduct 43% expenses: NT$60,000 × 57% = NT$34,200 of rental income. At 12%: NT$34,200 × 12% = about NT$4,104 of tax, roughly three quarters less than the ordinary landlord’s NT$16,416.
Once recognised, house tax can be charged at the owner-occupier rate (about 1.2%) and land value tax at the self-use residential land rate (about 2‰). It is the middle option: no contract with an operator, yet a large saving. Full details in the public-interest landlord guide.
Our view: What landlords fear most is usually not the tax but one more administrative step. Public-interest status is granted directly by the government; the landlord does nothing extra, as long as the lease does not contain an unenforceable “no subsidy applications” clause.
Social housing sublet-and-manage: 60% expense rate, but an operator in between
Under this scheme the landlord contracts the property to a sublet-and-manage operator, which lets it to an economically or socially disadvantaged household. Housing Act Article 23 then gives the highest necessary-expense rate of the three, 60%. The allowance is the same NT$15,000 monthly (NT$180,000 annual). The difference is that only 40% of the rent above the allowance counts as income (100% − 60%), against 57% for a public-interest landlord (100% − 43%), a gap of 17 percentage points.
Let to a general household instead and it becomes ordinary sublet-and-manage under Article 17: NT$6,000 a month tax-free, then 53% expenses on NT$6,000 to NT$20,000 and 43% above NT$20,000.
Worked example: NT$240,000 − NT$180,000 = NT$60,000; NT$60,000 × 40% = NT$24,000 of rental income; at 12%: NT$24,000 × 12% = about NT$2,880, over 80% less than the ordinary landlord’s NT$16,416.
The price is that rent is usually below market (in practice about 80% to 90%) and the operator manages the tenancy, so the landlord cannot screen tenants or collect rent directly. It suits landlords who want to be rid of management and want the maximum saving. If you value choosing your own tenant and adjusting rent, ordinary or public-interest status may fit better.
The NT$180,000 allowance is a single allowance shared between public-interest landlord status (Housing Act Article 15) and social housing lettings to disadvantaged households (Article 23).
Our view: Multi-property landlords who want less hassle suit social housing sublet-and-manage. A landlord with one property who wants to keep control of the tenant and the rent is usually best served by public-interest status: no operator, and still more than half the tax saved.
Common tax traps
- Undeclared rent. The National Taxation Bureau can match the Ministry of the Interior’s rent subsidy system and utility data. Detection means back tax and penalties, with a look-back of up to 5 years; in serious cases Article 41 of the Tax Collection Act (稅捐稽徵法第 41 條) adds criminal liability.
- “Letting to family means no tax” is wrong. Wherever rent is received, Income Tax Act Article 14, paragraph 1, category 5 (所得稅法第 14 條第 1 項第 5 類) treats it as property rental income; only the status differs.
- Owner-occupier house and land tax rates depend on the declared use. Only public-interest and social housing landlords qualify. An ordinary letting whose use is unclear may be charged the higher non-self-use rate, usually without retrospective correction.
See declaring rental income for the filing codes and deadlines and tax audits on landlords for the audit programme.
FAQ
How much do the three statuses differ?
On NT$240,000 annual rent at a 12% bracket: an ordinary landlord pays about NT$16,416; a public-interest landlord about NT$4,104; a social housing landlord about NT$2,880. The last two share the NT$15,000 monthly (NT$180,000 annual) allowance, and social housing has the higher expense rate (60% versus 43%).
Must I apply for public-interest landlord status myself?
Not necessarily. Once the tenant’s rent subsidy is approved, the local government recognises the landlord directly. The landlord can also apply to the city government. Either route works.
What does the 60% necessary-expense rate mean?
Of the rent above the NT$180,000 allowance, only 40% counts as taxable rental income; 60% is treated as expenses. That is a lower tax base than the public-interest landlord’s 57% (43% expense rate).
Do I still declare rent from family or employees?
Yes. Wherever rent is received, the Income Tax Act treats it as property rental income, whatever the relationship.
What happens if rental income is not declared?
The tax office can match the rent subsidy system and utility data. Beyond back tax there are penalties, a look-back of up to 5 years, and in serious cases criminal liability under the Tax Collection Act.
Do house tax and land value tax change under public-interest status?
Yes. House tax at about 1.2% and land value tax at about 2‰, provided the declared use matches actual use.
Conclusion
Work out the allowance first, then the expense rate, and the choice becomes clear. Tell us your rent and letting arrangement through our contact page and we can estimate the difference. The interactive calculators are on our Chinese page (https://www.fshouse.com.tw/page/about/index.aspx?kind=394).