South Korea Tax Calculator (2026)
Income tax rates and take-home pay for South Korea
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 in South Korea if I earn KRW 50 million per year?
South Korea uses a progressive tax system with 8 brackets ranging from 6% to 45%. For KRW 50 million in gross income, you'd pay 6% on the first KRW 14 million and 15% on the remaining KRW 36 million, before applying the employment income deduction and basic personal deduction. You'll also owe local income tax at 10% of your national income tax, plus mandatory social contributions like National Pension (4.75%) and National Health Insurance (4.07%).
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 earnings. 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 KRW 3.5 million plus 40% of income above KRW 5 million. This deduction significantly lowers your taxable income before the basic personal deduction of KRW 1.5 million is applied.
Do I have to pay social contributions in South Korea as an employee?
Yes, as an employee you must contribute to three mandatory schemes: National Pension (4.75% of gross income, capped at KRW 3.63 million annually), National Health Insurance (4.07% of gross income, capped at KRW 10.39 million annually), and Employment Insurance (0.9% of gross income). These contributions are deducted from your salary, though Employment Insurance is not deductible for income tax purposes, while the pension and health insurance contributions are.
What is the highest income tax rate in South Korea and at what income does it apply?
South Korea's highest income tax rate is 45%, which applies to taxable income over KRW 1 billion. The tax system is highly progressive, with rates increasing through 8 brackets: 6%, 15%, 24%, 35%, 38%, 40%, 42%, and finally 45%. This means higher earners face significantly higher marginal tax rates, though the employment income deduction and personal deduction still apply to reduce taxable income.
Is there a local or regional income tax in South Korea in addition to national income tax?
Yes, South Korea imposes a local income tax on top of national income tax. The local income tax is calculated at 10% of your national income tax liability and follows the same progressive bracket structure as national tax, with rates ranging from 0.6% to 4.5% of income. This means your total income tax burden includes both the national and local components, making it important to factor both into your take-home pay calculations.
Compare South Korea with other countries
Other tax calculators
Compare South Korea with another country
See side-by-side tax breakdowns for any two countries