Korea Income Tax Calculator

What is the income tax rate in South Korea?

The personal income tax rate in South Korea is progressive and ranges from 6% to 45% depending on your income.

Details about income tax in South Korea

The personal income tax system in South Korea is a progressive tax system. This means that your income is split into multiple brackets where lower brackets are taxed at lower rates and higher brackets are taxed at higher rates. Tax rates range from 6% to 45%.

A standard deduction exists which helps lower your taxable income. This standard deduction also operates on a progressive scale with a steeper increase for low brackets and a shallower increase for high brackets eventually leveling out at a plateau.

There also exists a local income tax paid to the city or the province that is the domicile of the taxpayer. This is yet another progressive tax that ranges from 0.6% to 4.5% depending on your income.

Social Security in South Korea

Social security in Sourh Korea takes on the form of the national pension, health insurance, and employment insurance. Contributions to the national pension and health insurance are around 4% with maximum caps on income applicable for contribution while contributions to employment insurance is under 1% with no cap. All social security contributions are tax deductible for resident taxpayers.

Resident status and income tax in South Korea

Native resident taxpayers are subject to tax on worldwide income while foreign resident taxpayers are only subject to tax on worldwide income if they have stayed for longer than five years during the past ten year period. For foreign resident taxpayers who have stayed for fewer than five years, only Korea-sourced income plus any foreign sourced income that is paid by a Korean entity or transferred into Korea are subject to income tax. Non-resident taxpayers are subject to tax only on income derived from sources within South Korea.

A resident taxpayer can be defined in several ways. The first is as an individual that has had a domicile in Korea or has had a residence within Korea for 183 days or more in a tax year. The second is as an individual that has an occupation that generally requires them to reside in Korea for 183 days or more. The third is as an individual who is deemed to reside in Korea for 183 days or more in a tax year by accompanying family in Korea or by retaining substantial assets in Korea. In other words, even when a person has a job overseas and stays there for more than 183 days in a tax year, they still can be regarded as a resident of Korea if they have their general living relationship, including their family and property, in Korea. For the most part, residency is determined on an individual "facts and circumstances" basis.

A non-resident taxpayer is simply anyone who does not match the definition of a resident taxpayer.

Sources:

• National Tax Service of Korea
• National Pension Service of Korea
• National Health Insurance Service of Korea

Quick Facts about Korea

• Name(s) in Native Language(s):남한
• Main Language(s):Korean
• Currency:South Korean Won (₩)
• Capital:Seoul
• Total Population:51,709,098
• Most Populous City:Seoul
• Time Zone(s):UTC+9
• International Phone Code:+82
• Driving Side:Right
• Climate:Cold but sunny in winter, hot and humid in summer with a short rainy season

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Tax Calculator Disclaimer

• Tax situations vary widely and calculations can get very complex. This calculator only provides an estimate according to the most common scenarios for salary (standard employment income) that comes from an employer. If you are self-employed, your taxes might differ.
• There may be additional deductions, credits, exemptions, allowances, reliefs, etc depending on many factors. Some factors are about your family such as the number of dependents, children, relatives, parents, etc. Other factors may include mortgage payments, property depreciation, charitible donations, additional voluntary retirement contributions, etc. Whether or not you are handicapped and/or disabled may also sometimes be an additional factor.
• Depending on region and jurisdiction, salary bonuses may be treated and taxed differently from standard salary. Additionally, some cities may have city specific income tax.
• This calculator only estimates income tax. It does not consider other taxes like property tax, self-employment tax, capital gains tax, dividend tax, etc.
• Calculators from other sites may show slightly different numbers due to different deductions/credits being included or they are based on data from a different year.
• Investomatica is not a tax advisor. While we try our best to stay up to date with changes in tax codes, we make no guarantee our calculator will always be accurate. Generally, we review changes once a year. If you notice a major miscalculation or error with our calculator (most likely caused by a typo somewhere), feel free to direct message us on twitter and let us know. However, if you have specific tax questions, please consult a licensed tax professional.