Korean Income Tax Calculator
Calculate Korean comprehensive income tax with 8 progressive brackets (2026). Includes local income tax and wage earner credit.
Tax Breakdown
Enter taxable income.
What this tool does
The Korean income tax calculator applies the 8-bracket progressive rate (6% / 15% / 24% / 35% / 38% / 40% / 42% / 45%) as of 2026 to compute calculated tax, final tax, and local income tax from a given taxable base. It supports the wage earner credit (Income Tax Act §59) and shows the effective rate alongside the current bracket. All inputs stay in the browser — nothing is sent to a server.
Who uses this
- Freelancers and sole proprietors: simulate the May income tax filing
- Employees: estimate refund or additional payment after year-end settlement
- Landlords: see when adding rental income pushes you into a higher bracket
- Investors: compare separate vs comprehensive taxation on dividends and interest
- Year-end planning: estimate tax reduction from pension or IRP contributions
How to use (4 steps)
- 1Enter your taxable base — gross income minus deductions (personal, pension, special). Employees can read this directly from the year-end settlement document.
- 2If you are an employee, check 'Apply wage earner credit'. The calculator applies the Income Tax Act §59 credit (up to KRW 740,000) automatically.
- 3Click Calculate. You will see the marginal rate, progressive deduction, calculated tax, wage earner credit, final tax, 10% local income tax, and the effective rate.
- 4The 8-bracket table highlights your current bracket. Adjust the taxable base to see how close you are to the next bracket boundary.
Formula (Korean Income Tax Act §55)
Calculated tax = Taxable base × Marginal rate − Progressive deduction 2026 brackets: up to KRW 14M : 6% (deduction 0) up to KRW 50M : 15% (deduction 1,260,000) up to KRW 88M : 24% (deduction 5,760,000) up to KRW 150M : 35% (deduction 15,440,000) up to KRW 300M : 38% (deduction 19,940,000) up to KRW 500M : 40% (deduction 25,940,000) up to KRW 1B : 42% (deduction 35,940,000) over KRW 1B : 45% (deduction 65,940,000) Final tax = Calculated tax − tax credits (wage earner, child, etc.) Local income tax = Final tax × 10% Total tax = Final + Local
Real examples
Example 1: Employee, gross KRW 50M (taxable ~KRW 30M)
Bracket: 15%. Calculated = 30M × 0.15 − 1.26M = KRW 3.24M. After wage earner credit (~KRW 1.78M) and local tax (~KRW 146K), total roughly KRW 1.6M.
Example 2: Freelancer, taxable KRW 80M
Bracket: 24%. Calculated = 80M × 0.24 − 5.76M = KRW 13.44M. No wage earner credit. Plus local 10% = KRW 14.78M total.
Example 3: Crossing into 35% bracket at KRW 90M
At KRW 88M you are still at 24%. Adding KRW 2M of income jumps you to 35%: 90M × 0.35 − 15.44M = KRW 16.06M, a jump of about KRW 2.5M for the extra KRW 2M earned. Plan year-end deductions to avoid crossing.
Frequently asked questions
When is the Korean income tax filing period?+
May 1 to May 31 each year. Sincere-filing-confirmation taxpayers get an extension to June 30. Payment is due in the same window, with optional installment to 2 months later.
Do employees need to file?+
If you only have wage income, the year-end settlement handles it. If you have side income, freelance income, rental income, or financial income above KRW 20M, you must file in May.
What is the progressive deduction?+
A shortcut for the staircase tax formula. Instead of computing tax bracket by bracket, you multiply the entire base by the top marginal rate and subtract the progressive deduction for that bracket — the result is identical.
Where do I file local income tax?+
Local income tax is 10% of the final tax and is filed alongside income tax via Hometax. A separate payment notice is issued and paid to your city or district office.
What is the wage earner credit cap?+
Up to KRW 740K for gross income below KRW 33M; the cap decreases for higher incomes (KRW 660K / 500K / 200K floor at high incomes). 55% credit on calculated tax up to KRW 1.3M, then 30%, capped.
Does this calculator handle child or pension credits?+
Currently only the wage earner credit is applied. Child credit (KRW 150K per child), pension savings credit (up to 16.5%), and medical/donation credits must be subtracted manually from the final tax.
Who are sincere-filing-confirmation taxpayers?+
Business owners exceeding a revenue threshold (e.g., KRW 1.5B for wholesale/retail, KRW 750M for restaurants) must attach a tax accountant's confirmation and file by June 30. Missing this triggers a penalty.
Cautions
- •This is a simplified simulation focused on the main calculation. Real filings include detailed credits for children, donations, medical expenses, etc.
- •Separate-taxation items (financial income under KRW 20M, daily-wage income, etc.) are excluded from the taxable base.
- •Sincere-filing-confirmation taxpayers have a June 30 deadline.
- •Results are for reference. Verify with Hometax's 'Tax Filing Assistant' or a tax accountant.
- •Rates and caps may change with future law revisions. Current as of January 2026.
Last reviewed: 2026-05-23