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 to 45% on income over KRW 1 billion. As an employee, you'll also pay a basic personal deduction of KRW 1.5 million before taxes are calculated, plus you'll benefit from an employment income deduction that reduces your taxable income based on your earnings level. Additionally, you'll pay local income tax at rates between 0.6% and 4.5% depending on your bracket, which is calculated as a separate subnational tax.
What are the mandatory deductions from my salary in South Korea?
As an employee in South Korea, you'll have three main social contributions deducted from your salary: National Pension at 4.75% (capped at KRW 3,631,440 annually), National Health Insurance at approximately 4.07% (capped at KRW 10,390,220 annually), and Employment Insurance at 0.9% with no cap. All three contributions are deductible from your gross income before calculating income tax, which lowers your overall tax burden.
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 applied to all wage earners and cannot be refunded if it exceeds your tax bill, meaning it can reduce your tax to zero but won't result in a refund.
How does the employment income deduction work in South Korea?
The employment income deduction is a tiered benefit that reduces your taxable income before the income tax brackets are applied. For example, if you earn KRW 20 million, you receive a deduction of KRW 7.5 million plus 15% of income above KRW 15 million, significantly lowering the amount subject to the 15% tax bracket. This deduction is more generous at lower income levels, providing up to 70% deduction for earnings under KRW 5 million.
Will my taxes be different if I'm a non-resident or foreign worker in South Korea?
The tax calculator models a resident employee with standard employment income and doesn't include foreign tax treaty provisions or non-resident taxation rules, which can differ significantly. If you're relocating to South Korea as a foreign worker, you should consult with a tax professional or the Korean tax authority (NTS) to understand how residency status, treaty benefits, and non-resident taxation rules may affect your specific situation.
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