South Korea Tax Calculator (2026)
Income tax rates and take-home pay for South Korea
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South Korea Income Tax Brackets (2026)
| Bracket | Income Range | Rate |
|---|---|---|
| Up to KRW 14 million | ₩0 - ₩14,000,000 | 6.0% |
| KRW 14 million to KRW 50 million | ₩14,000,000 - ₩50,000,000 | 15.0% |
| KRW 50 million to KRW 88 million | ₩50,000,000 - ₩88,000,000 | 24.0% |
| KRW 88 million to KRW 150 million | ₩88,000,000 - ₩150,000,000 | 35.0% |
| KRW 150 million to KRW 300 million | ₩150,000,000 - ₩300,000,000 | 38.0% |
| KRW 300 million to KRW 500 million | ₩300,000,000 - ₩500,000,000 | 40.0% |
| KRW 500 million to KRW 1 billion | ₩500,000,000 - ₩1,000,000,000 | 42.0% |
| Over KRW 1 billion | ₩1,000,000,000+ | 45.0% |
Personal allowance: ₩1,500,000
Local income tax
| Bracket | Income Range | Rate |
|---|---|---|
| Up to KRW 14 million | ₩0 - ₩14,000,000 | 0.6% |
| KRW 14 million to KRW 50 million | ₩14,000,000 - ₩50,000,000 | 1.5% |
| KRW 50 million to KRW 88 million | ₩50,000,000 - ₩88,000,000 | 2.4% |
| KRW 88 million to KRW 150 million | ₩88,000,000 - ₩150,000,000 | 3.5% |
| KRW 150 million to KRW 300 million | ₩150,000,000 - ₩300,000,000 | 3.8% |
| KRW 300 million to KRW 500 million | ₩300,000,000 - ₩500,000,000 | 4.0% |
| KRW 500 million to KRW 1 billion | ₩500,000,000 - ₩1,000,000,000 | 4.2% |
| Over KRW 1 billion | ₩1,000,000,000+ | 4.5% |
National Pension
| Bracket | Income Range | Rate |
|---|---|---|
| National Pension employee rate | ₩0+ | 4.8% |
Capped at ₩3,631,440 per year
National Health Insurance
| Bracket | Income Range | Rate |
|---|---|---|
| NHI employee rate including long-term care | ₩0+ | 4.1% |
Capped at ₩10,390,220 per year
Employment Insurance
| Bracket | Income Range | Rate |
|---|---|---|
| Employment Insurance employee rate | ₩0+ | 0.9% |
Key Facts
Tax Year
2026
Currency
KRW
Top Rate
45.0%
Brackets
8 brackets
Allowance
₩1,500,000
Social Contributions
3 items
Assumptions
- · Model represents a resident employee with employment income only.
- · Local income tax is calculated as 10% of national PIT and applied as a separate subnational tax.
- · Employment income deduction applied before calculating taxable income.
- · National Pension contribution cap reflects the January-June 2026 rate (KRW 302,570 monthly).
- · National Health Insurance contribution cap set at KRW 10,390,220 annually as of 2026.
- · Employment Insurance participation assumed for representative foreign worker scenario.
- · Basic personal deduction of KRW 1.5 million applied; no dependants claimed.
- · Alternative Minimum Tax not included as it applies to business income, not employment income.
- · Severance pay system excluded as it is taxed separately and not part of standard annual comparison.
- · Wage tax credit simplified to standard representation without individual sub-brackets for income thresholds above KRW 33 million.
- · Various special credits (charitable, education, insurance, medical, pension) excluded from default model for simplicity; only basic wage credit included.
- · Foreign tax treaty provisions and non-resident taxation rules not modeled.
- · Church tax not applicable in Korea.
Frequently asked questions
How much income tax will I pay as an expat working in South Korea?
South Korea uses a progressive tax system with 8 income tax brackets ranging from 6% on income up to KRW 14 million, increasing to 45% on income over KRW 1 billion. You'll also pay a local income tax of 10% of your national income tax, plus mandatory social contributions including National Pension (4.75%), National Health Insurance (4.07%), and Employment Insurance (0.9%). The actual amount depends on your gross income and which deductions and credits you qualify for.
What is the employment income deduction in South Korea?
South Korea offers a tiered employment income deduction that reduces your taxable income before calculating tax. The deduction ranges from 70% of income for those earning up to KRW 5 million, down to just 2% for those earning over KRW 100 million, with a maximum deduction cap of KRW 20 million. This is one of the most significant tax breaks for employees and substantially lowers your effective tax rate.
Are social contributions like pension and health insurance tax deductible in South Korea?
Yes, National Pension contributions and National Health Insurance contributions are both deductible from your gross income before calculating income tax, which reduces your overall tax burden. However, Employment Insurance contributions are not tax deductible, though they are still mandatory for most employees. These contributions have annual caps, with National Pension capped at KRW 3.63 million and National Health Insurance capped at KRW 10.39 million.
Do I get any tax credits as a wage earner in South Korea?
Yes, South Korea provides a wage earner tax credit of KRW 740,000 that reduces your income tax liability. This is a standard credit available to most employees and is applied after calculating your tax on taxable income. It's not refundable, meaning it can reduce your tax to zero but won't result in a refund if the credit exceeds your tax owed.
How do local taxes work in South Korea, and will they vary where I work?
South Korea imposes a local income tax at a rate of 10% of your national income tax, which means the local tax brackets mirror the national ones but at one-tenth the rate. The data provided covers the standard national and local tax system, though rates may vary slightly by province or special administrative region, so it's worth confirming the specific rates for your work location.
What's the basic personal deduction in South Korea's tax system?
South Korea provides a basic personal deduction of KRW 1.5 million, which is subtracted from your income after applying the employment income deduction. This deduction further reduces your taxable income before the progressive tax brackets are applied, providing additional tax relief for all residents.
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