Korea Salary Calculator

Summary

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.

This salary calculator also works as an income tax calculator for Korea, as it shows you how much income tax you have to pay based on your salary and personal details.

To learn more about , 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!

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 eight 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%.

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.