What the law says
The figures below are the 2026 rules as the calculator models them, for an employee. Korea treats you as a resident if you have a domicile or have lived in Korea for 183 days or more. Employers withhold tax from each payslip under a standard table and settle the final amount in February, in the year-end tax settlement. The social insurance contributions are taken from pay and are deductible from taxable income.
National income tax rates
Rates apply to taxable income. Taxable income is your salary less the earned income deduction (see below), a ₩1,500,000 personal deduction for you and for each dependant, and your social insurance contributions. The calculator then subtracts an earned income tax credit.
| Taxable income | Rate |
|---|
| Up to ₩14,000,000 | 6% |
|---|
| ₩14,000,001 to ₩50,000,000 | 15% |
|---|
| ₩50,000,001 to ₩88,000,000 | 24% |
|---|
| ₩88,000,001 to ₩150,000,000 | 35% |
|---|
| ₩150,000,001 to ₩300,000,000 | 38% |
|---|
| ₩300,000,001 to ₩500,000,000 | 40% |
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| ₩500,000,001 to ₩1,000,000,000 | 42% |
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| Over ₩1,000,000,000 | 45% |
|---|
Earned income deduction
Employees get a deduction that stands in for work expenses. It falls as a share of pay as salary rises, and it is capped at ₩20,000,000.
| Annual salary | Deduction |
|---|
| Up to ₩5,000,000 | 70% of salary |
|---|
| ₩5,000,001 to ₩15,000,000 | ₩3,500,000 + 40% of the part over ₩5,000,000 |
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| ₩15,000,001 to ₩45,000,000 | ₩7,500,000 + 15% of the part over ₩15,000,000 |
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| ₩45,000,001 to ₩100,000,000 | ₩12,000,000 + 5% of the part over ₩45,000,000 |
|---|
| Over ₩100,000,000 | ₩14,750,000 + 2% of the part over ₩100,000,000 (cap ₩20,000,000) |
|---|
Local income tax and the 19% flat election
On top of the national tax, local income tax is 10% of the national amount, so a 15% national rate costs 16.5% in all. Foreign employees can elect a flat 19% national rate on their whole salary, with no deductions or credits, instead of the standard scale. With local tax it comes to 20.9% of gross. It is a time-limited relief, so check with the National Tax Service that it is available for you and how to elect it.
Social insurance
The calculator takes the employee's share of the national pension (4.75% of pay up to a monthly cap, which rises on 1 July), health insurance (3.595%), long-term care (13.14% of the health premium) and employment insurance (0.9%). Employers pay their own shares on top.
How to pay less tax, legally
These are mainstream, legal ways to reduce Korean tax. Which ones apply depends on your visa and your employer.
Use the year-end settlement to claim deductions
Suits: any employee. In January you collect documents for deductions such as health care, education, insurance and credit card spending from Hometax and hand them to your employer, who settles your tax in the February payroll. The calculator only models the standard deductions.
Caveat: each deduction has its own rules and thresholds, so check what applies to you with your payroll team.
Compare the 19% flat election with the standard scale
Suits: foreign employees on high salaries and few deductions. In the calculator a single person gains from about ₩162,000,000 of salary, while the standard scale is better below that.
Caveat: the election is a time-limited relief, and the rules on how and when you may choose it or switch back are the National Tax Service's. Confirm them before you decide.
Claim dependants and family deductions
Suits: employees with a spouse, children or parents who meet the income and residency tests. Each dependant adds a personal deduction (₩1,500,000 in the calculator), and more deductions apply to some situations.
Caveat: dependants must meet the tests, and the foreign family members of a foreign worker are subject to their own rules. They also do not apply under the flat election.
Check the pension refund when you leave
Suits: foreign workers who leave Korea for good. Foreign nationals from some countries can claim a lump-sum refund of national pension contributions when they leave, depending on their country's agreement with Korea.
Caveat: eligibility depends on your nationality, so check with the National Pension Service before you rely on it.
Frequently asked questions
How much tax do I pay on ₩60,000,000 in South Korea?
On the standard scale you pay about ₩4,474,730 in national and local income tax and ₩5,830,430 in social insurance, and keep about ₩49,694,841. Try your own figure in the Global Income Tax Calculator.
What is the 19% flat tax for foreign workers in Korea, and when does it pay?
Foreign employees can elect to pay a flat 19% national income tax on their whole salary, instead of the progressive scale. There are no deductions or credits under the flat rate, and local tax of 10% is added, so the total is 20.9%. It only pays when the standard scale would take more, which in the calculator happens for a single person from about ₩162,000,000. Below that the standard scale is cheaper, as in the ₩60,000,000 and ₩30,000,000 examples. Check the conditions and deadline with the National Tax Service.
What is the year-end tax settlement in Korea, and why does my February pay change?
Through the year your employer withholds tax using a standard table. In January you collect documents for deductions, such as health care, education and insurance, and your employer recalculates your tax for the full year in the February payroll. If too much was withheld you get a refund in your pay, and if too little you pay extra, so your February pay can be higher or lower than usual.
The calculator works out the full-year tax, so a monthly payslip can differ from it.
What is the local income tax in Korea?
Local income tax is charged on top of the national income tax at 10% of the national amount, so you pay it automatically when your employer withholds. It is a separate line on the settlement, not an extra tax on your income. A 15% national band costs 16.5% in total.
Do I pay Korean pension and health insurance as a foreigner?
Foreign employees are generally covered by the national pension, health insurance and employment insurance, with some exceptions that depend on nationality and the visa. The calculator includes all four contributions. Pension refunds when you leave depend on your country's agreement with Korea, so check with the National Pension Service.
Does the standard scale or the flat rate work better for an EPS worker?
For a worker on ₩30,000,000 the standard scale is far cheaper: ₩501,848 of national tax against ₩5,700,000 under the flat 19%. The earned income deduction and tax credit shield most of a low salary from tax, and the flat rate removes both.