Income Before Tax₩ 0
Take Home Pay₩ 0
Total Tax₩ 0
Average Tax Rate0 %
₩ = South Korean Won
Income Before Tax₩ 0
Income Tax₩ 0
Local Income Tax₩ 0
National Pension₩ 0
National Health Insurance₩ 0
Employment Insurance₩ 0
Total Tax₩ 0
Take Home Pay₩ 0
Total Deductions₩ 0
Average Tax Rate0 %
Table of Contents
Enter your employment income into the salary calculator above to estimate how taxes in Korea may affect your finances. You'll then get your estimated take home pay, an estimated breakdown of your potential tax liability, and a quick summary down here so you can have a better idea of what to possibly expect when planning your budget.
If you make 0 a year living in Korea, we estimate that you'll be taxed 0. In almost all cases, your employer will automatically withhold this amount from your paychecks and thus your take home pay should be around 0 per year or 0 per month. Lastly, your average tax rate ends up being around 0 %. Note that this estimate is based only on the most common standard deductions and credits, if any. If you are eligible for additional deductions and credits, your taxes may differ.
To learn more about Korea, its income tax, and tax brackets, so that you can get a deeper understanding of how your budget and finances may be affected, scroll down to the detail section below!
Quick Facts about Korea
- Name(s) in Native Language(s):남한
- Main Language(s):Korean
- Currency:South Korean Won (₩)
- 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
Frequently Asked Questions
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. This income tax calculator can help estimate your average income tax rate and your take home pay.
How many income tax brackets are there in South Korea?
The income tax system in South Korea has 8 different tax brackets. For more details, check out our detail section.
South Korea Income Tax Brackets and Other Information
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%.
For 2022 tax year
|Taxable Income (KRW)||Tax Rate|
|From 12,000,000 to 46,000,000||15%|
|From 46,000,000 to 88,000,000||24%|
|From 88,000,000 to 150,000,000||35%|
|From 150,000,000 to 300,000,000||38%|
|From 300,000,000 to 500,000,000||40%|
|From 500,000,000 to 1,000,000,000||42%|
|From 1,000,000,000 onwards||45%|
A standard deduction exists in the form of a personal deduction and an employment income deduction, both of which help lower your taxable income. While the personal deduction is a fixed amount, the employment income deduction 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. Note that although non-residents are allowed access to the personal deduction, they are excluded from most other kinds of deductions and tax credits.
Depending on your situation, residents may be eligible for additional deductions including some for dependents, certain educational expenses, certain charitable contributions, certain insurance premiums, certain medical expenses, certain pension premiums, some mortgage interest, and disability, among many others.
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.
An alternative minimum tax (AMT) also exists, but since it is only applied on business income and not on employment income, our calculator, which is focused on normal employment income, does not incorporate it.
Time Limited Benefits for Foreign Employees and Expats
Foreign employees working in Korea have the choice to select an optional flat tax rate of 19% in lieu of the progressive tax rates. This optional selection is only available for those that start work before the end of 2023 and, if chosen, will only last for a period of five years from the start of work in Korea. That said, this only benefits high income earners.
Certain foreign employees that are considered to be qualified foreign technicians or engineers providing services to a domestic Korean entity may be eligible to have 50% of their income be tax exempt. This special tax relief is also only available for those that start work before the end of 2023 and only lasts for a period of five years.
There is an even higher level of tax savings for those that are qualified foreign technicians or engineers providing services to a domestic Korean entity and working in the fields of raw materials, parts, and equipment. These workers may be eligible to have 70% of their income be tax exempt. However, this is even more limited in time compared to the other offerings as it only applies to those that start work before the end of 2022 and only lasts for a period of three years. The remaining two years would then be at the 50% exempt level.
Social Security in South Korea
Social security in South Korea takes on the form of the national pension, health insurance, and employment insurance. Contributions are shared between employers and employees.
For employees, contributions to the national pension and health insurance are both 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.
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Salary Calculator Disclaimer
- While internal calculations are not rounded, all final resultant numbers are rounded normally with numbers ending in 0.5 and above being rounded up.
- Tax situations vary widely and calculations can get very complex. This income tax calculator only provides a rough 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 income tax calculator only estimates income tax. It does not consider other taxes like property tax, self-employment tax, capital gains tax, dividend tax, etc.
- Income tax 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 salary calculator will be accurate. Generally, we review changes once a year. If you notice a major miscalculation or error with our salary 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.
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