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 income tax system with 8 brackets ranging from 6% on income up to KRW 14 million, increasing to 45% on income over KRW 1 billion. Before calculating your tax, you'll receive an employment income deduction that ranges from 70% of income for lower earners down to 2% for those earning over KRW 100 million, plus a basic personal deduction of KRW 1.5 million. You'll also get a wage earner tax credit of up to KRW 740,000 to reduce your final tax bill.
What social contributions do I need to pay as an employee in South Korea?
As an employee, you contribute to three main social programs: National Pension at 4.75% of your gross income (capped at KRW 3.63 million annually), National Health Insurance at 4.07% (capped at KRW 10.39 million annually), and Employment Insurance at 0.9% with no cap. All three contributions are deducted from your salary, though Employment Insurance is not tax-deductible while the pension and health insurance contributions reduce your taxable income.
Is there a local or regional tax in South Korea in addition to national income tax?
Yes, South Korea has a local income tax applied on top of national income tax, with rates that are 10% of the national tax rate at each bracket level, ranging from 0.6% to 4.5%. This local tax is calculated separately and added to your total tax burden, so your combined income tax rate will be slightly higher than the national rate alone.
How does the employment income deduction work in South Korea?
The employment income deduction is a tiered benefit that reduces your taxable income before you calculate income tax. For example, if you earn KRW 10 million, you receive a 40% deduction plus KRW 3.5 million flat amount, which significantly lowers the amount subject to tax. This deduction is much more generous for lower earners, decreasing as your income rises, with a maximum deduction capped at KRW 20 million for high earners.
What is the take-home pay calculation based on in South Korea?
Your take-home pay is calculated by starting with your gross income, subtracting the employment income deduction, applying the 8-bracket progressive income tax, subtracting the local income tax (10% of national tax), deducting your pension and health insurance contributions, and subtracting your Employment Insurance contribution. A wage earner tax credit of up to KRW 740,000 is then applied to reduce your final tax liability before arriving at your net pay.
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