South Korea Income Tax Calculator 2026 — 6% to 45% Brackets
Calculate 2026 South Korea income tax across 8 brackets (6%–45%), employment income deduction, NHI (3.545%), National Pension (4.5%), and local income tax. ₩ formatting. Foreign worker flat rate comparison.
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≈ ₩5,833,333 / month Common salaries:
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Income Tax (national + local)
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NHI (3.545%)
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National Pension (4.5%)
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Take-Home Pay
Income Tax Bracket Breakdown
| Bracket | Amount in Bracket | Rate | Tax |
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Complete Pay Summary
How South Korea's Income Tax Works
South Korea's income tax system uses progressive national rates (6%–45%) plus a 10% local income tax on the national tax amount. Employees first apply the employment income deduction to reduce gross salary, then subtract personal deductions to arrive at taxable income.
Korea Income Tax Formula
Employment Income = Gross Salary − Employment Income Deduction
Taxable Income = Employment Income − Personal Deduction (₩1,500,000) − Dependent Deductions
National Tax = Progressive bracket calculation (6%–45%)
Local Income Tax = National Tax × 10%
NHI Employee: Gross × 3.545% | National Pension: Min(Gross, ₩70,800,000) × 4.5%
Taxable Income = Employment Income − Personal Deduction (₩1,500,000) − Dependent Deductions
National Tax = Progressive bracket calculation (6%–45%)
Local Income Tax = National Tax × 10%
NHI Employee: Gross × 3.545% | National Pension: Min(Gross, ₩70,800,000) × 4.5%
Example: ₩70,000,000 salary, single resident
Employment income deduction: ₩5M×70% + ₩10M×40% + ₩25M×15% + ₩25M×5% + ₩5M×2% = ₩11,650,000
Employment income: ₩70M − ₩11.65M = ₩58,350,000
Taxable: ₩58,350,000 − ₩1,500,000 (personal) = ₩56,850,000
National tax: ₩6%×₩14M + ₩15%×₩36M + ₩24%×₩6.85M = ₩840K + ₩5.4M + ₩1.644M = ₩7,884,000
Local income tax: ₩788,400 | Total income tax: ₩8,672,400
Employment income: ₩70M − ₩11.65M = ₩58,350,000
Taxable: ₩58,350,000 − ₩1,500,000 (personal) = ₩56,850,000
National tax: ₩6%×₩14M + ₩15%×₩36M + ₩24%×₩6.85M = ₩840K + ₩5.4M + ₩1.644M = ₩7,884,000
Local income tax: ₩788,400 | Total income tax: ₩8,672,400
Extended
Foreign Worker 19% Flat Rate vs Progressive Tax
Compare progressive brackets vs the 19% flat rate option available to foreign workers in Korea
Foreign workers in Korea may elect a flat 19% income tax rate (+ 10% local = 20.9%) for 5 years. This is often better for high earners. See your breakeven point below.
| Income Level | Progressive Tax | Flat 19% (+ 10% local) | Flat Rate Saves |
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The progressive vs flat rate breakeven is approximately at ₩100,000,000 annual salary for most workers.
Frequently Asked Questions
What are South Korea's income tax brackets for 2026?
South Korea has 8 progressive income tax brackets for 2026: 6% on taxable income up to KRW 14,000,000; 15% on KRW 14,000,000–50,000,000; 24% on KRW 50,000,000–88,000,000; 35% on KRW 88,000,000–150,000,000; 38% on KRW 150,000,000–300,000,000; 40% on KRW 300,000,000–500,000,000; 42% on KRW 500,000,000–1,000,000,000; and 45% on income above KRW 1,000,000,000. A 10% local income tax (주민세) is applied on top of the national tax.
What is the employment income deduction in South Korea?
South Korea's employment income deduction (근로소득공제) reduces gross income before calculating tax. The deduction is: 70% of income up to KRW 5,000,000; 40% on KRW 5,000,000–16,100,000; 15% on KRW 16,100,000–45,000,000; 5% on KRW 45,000,000–100,000,000; and 2% on income above KRW 100,000,000 (maximum deduction capped at KRW 20,000,000). The basic personal deduction is KRW 1,500,000.
How does South Korea's National Health Insurance (NHI) work?
National Health Insurance (국민건강보험) is mandatory for all employees. The 2026 employee contribution rate is 3.545% of monthly salary (the employer contributes the same amount). There is a monthly salary cap for contributions. Additionally, employees aged 40–64 pay a Long-Term Care Insurance premium of 12.81% of the health insurance premium. National Pension (국민연금) is 4.5% of monthly salary up to KRW 5,900,000.
What is the flat 19% tax rate for foreign workers?
Foreign workers can elect a flat income tax rate of 19% (plus 10% local income tax = 20.9% combined) on total employment income, without applying the employment income deduction or personal deductions. This election is available for 5 years from the date of first employment in Korea. This is advantageous for workers earning more than roughly KRW 100,000,000, where the progressive system would result in higher taxes. Workers should compare both methods annually.
Is Korea's earned income tax credit available to workers?
Yes. South Korea has an Earned Income Tax Credit (근로장려금, EITC) for low-income workers. For 2026, single households earning up to KRW 22,000,000 may receive up to KRW 1,650,000 as a credit; single-income families (spouse + children) up to KRW 32,000,000 may receive up to KRW 2,850,000. The credit phases out above these limits. Assets exceeding KRW 200,000,000 (excluding primary home) disqualify the applicant.