South Korea Tax Calculator (2026)
Income tax rates and take-home pay for South Korea
Using Seoul for state/regional taxes. Region selection coming soon.
South Korea Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| Bracket 1 | ₩0 - ₩14,000,000 | 6.0% |
| Bracket 2 | ₩14,000,000 - ₩50,000,000 | 15.0% |
| Bracket 3 | ₩50,000,000 - ₩88,000,000 | 24.0% |
| Bracket 4 | ₩88,000,000 - ₩150,000,000 | 35.0% |
| Bracket 5 | ₩150,000,000 - ₩300,000,000 | 38.0% |
| Bracket 6 | ₩300,000,000 - ₩500,000,000 | 40.0% |
| Bracket 7 | ₩500,000,000 - ₩1,000,000,000 | 42.0% |
| Bracket 8 | ₩1,000,000,000+ | 45.0% |
Personal allowance: ₩1,500,000
Seoul Local Income Tax
| Bracket | Income Range | Rate |
|---|---|---|
| Local Bracket 1 | ₩0 - ₩14,000,000 | 0.6% |
| Local Bracket 2 | ₩14,000,000 - ₩50,000,000 | 1.5% |
| Local Bracket 3 | ₩50,000,000 - ₩88,000,000 | 2.4% |
| Local Bracket 4 | ₩88,000,000 - ₩150,000,000 | 3.5% |
| Local Bracket 5 | ₩150,000,000 - ₩300,000,000 | 3.8% |
| Local Bracket 6 | ₩300,000,000 - ₩500,000,000 | 4.0% |
| Local Bracket 7 | ₩500,000,000 - ₩1,000,000,000 | 4.2% |
| Local Bracket 8 | ₩1,000,000,000+ | 4.5% |
State allowance: ₩1,500,000
National Pension
| Bracket | Income Range | Rate |
|---|---|---|
| Standard Rate | ₩0+ | 4.5% |
Capped at ₩3,439,800 per year
National Health Insurance
| Bracket | Income Range | Rate |
|---|---|---|
| Standard Rate | ₩0+ | 4.0% |
Capped at ₩64,289,760 per year
Employment Insurance
| Bracket | Income Range | Rate |
|---|---|---|
| Standard Rate | ₩0+ | 0.9% |
Key Facts
Tax Year
2025
Currency
KRW
Top Rate
45.0%
Brackets
8 brackets
Allowance
₩1,500,000
Social Contributions
3 items
Assumptions
- · Employment Income Deduction is modeled using tiered percentages and flat amounts to match the marginal deduction structure.
- · The 'Credit for Class A wages' (which reduces tax liability by up to KRW 740,000 depending on income) and other specific credits like the one for credit card usage are not modeled in the numeric brackets but significantly impact final liability.
- · Social security contributions (NP, NHI, and EI) are all treated as deductible from taxable income based on the source text.
- · Health Insurance rate (4.004%) includes the mandatory long-term care insurance component.
Frequently asked questions
How much income tax do I pay in South Korea?
South Korea uses a progressive income tax system with 8 brackets ranging from 6% on income up to KRW 14 million to 45% on income over KRW 1 billion. You also pay a local income tax in your region (this calculator uses Seoul rates, which are 10% of your national income tax), plus mandatory social contributions including National Pension (4.5%), National Health Insurance (4%), and Employment Insurance (0.9%), all of which reduce your taxable income.
What is the Employment Income Deduction in South Korea?
The Employment Income Deduction is a tiered deduction that reduces your taxable income based on your gross salary. For example, if you earn up to KRW 5 million, you get a 70% deduction; between KRW 5 million and KRW 15 million, you get 40% plus KRW 1.5 million; and the percentage decreases for higher earners up to a maximum deduction of KRW 20 million. This deduction significantly lowers your taxable income before income tax is calculated.
Do social security contributions reduce my taxable income in South Korea?
Yes, all three mandatory social contributions in South Korea (National Pension, National Health Insurance, and Employment Insurance) are deductible from your gross income before calculating income tax. This means your taxable income is your gross salary minus these contributions and the Employment Income Deduction, which can meaningfully reduce your overall tax burden.
What is the basic income tax allowance in South Korea?
South Korea provides a basic tax allowance of KRW 1.5 million for both national and local income tax. This means the first KRW 1.5 million of your taxable income (after deductions) is not subject to income tax, similar to a standard deduction in other countries.
Does my location within South Korea affect how much tax I pay?
Yes, local income tax rates vary by region. This calculator uses Seoul as the default, where the local income tax rate mirrors the national rate structure at 10% of national tax (ranging from 0.6% to 4.5% depending on your bracket). If you live or work in a different region, your local tax rate may differ, so you should verify the specific rates for your location.
What happens if I earn over KRW 1 billion in South Korea?
Income above KRW 1 billion is taxed at the highest marginal rate of 45% for national income tax, plus an additional 4.5% local income tax in Seoul. At this income level, the Employment Income Deduction is capped at KRW 20 million, and social contribution caps apply, so you should consult a tax professional for detailed planning.
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