A non-linear finite element (FE) framework for time-dependent capacity assessment of corroded rectangular reinforced concrete (RC) columns is developed. The proposed non-linear FE model includes the impact of corrosion on inelastic buckling and low-cycle fatigue degradation of longitudinal reinforcement. The proposed non-linear FE model is validated against a set of experimental data and then extended to evaluate the impact of corrosion on damage limit states to be used in seismic performance and evaluation of corroded structures. This is done through a parametric study on hypothetical RC columns, varied in axial force ratios, mass loss ratios, cover crack widths and confinement levels. Moreover, the application of the proposed model in seismic collapse capacity assessment of corroded structures is shown through non-linear dynamic analyses of prototype columns. Results show that, depending on the axial force ratio, corrosion changes the failure mechanism of the columns. The results of this study suggest that in seismic fragility analysis of corroded structures, the damage limit states should be considered as time-variant parameters.