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South Korea Tax Guide Hub 2026: Income Tax, Rates & Calculator

KEY INSIGHT
South Korea's headline 6-45% rates mask a 10% local surtax—the true top rate is 49.5%. The expat trap: foreigners can choose a flat 20.9% rate for 20 years (beneficial above ₩130 million), but you lose all deductions. A ₩60 million ($43,000 USD) salary pays roughly ₩8.5 million in income tax. Under 5 years in Korea? Only Korean-source income is taxed.
At a glance

Key Facts

Income Tax
6-45% + 10% local surtax
Effective Top Rate
49.5% (above ₩1 billion)
Foreigner Flat Tax
19% + 1.9% local = 20.9% option
Introduction

South Korea's income tax runs from 6% to 45% across 8 brackets, but the hidden 10% local income tax surtax pushes the true top rate to 49.5% for income above ₩1 billion (~$715,000 USD). Foreigners get a powerful option: a flat 19% + 1.9% local = 20.9% total for up to 20 years, with no deductions but massive savings for high earners above ₩130 million. The 5-year rule protects expats: if you've been in Korea less than 5 years in any 10-year period, only Korean-source income is taxed. Social security adds ~13%: National Pension 4.75% + Health Insurance 4.07%.

This hub links to every South Korea tax guide and calculator on CountryTaxCalc — covering income tax rates, expat obligations, and tools to calculate your take-home pay.

Section 01

South Korea Tax Guides

Detailed South Korea tax guides on CountryTaxCalc:

Section 02

South Korea Income Tax Calculator

South Korea's income tax uses 8 tax brackets from 6% to 45%. Use the calculator to estimate your take-home pay after income tax:

IncomeRate
₩0 - ₩14,000,0006%
₩14,000,000 - ₩50,000,00015%
₩50,000,000 - ₩88,000,00024%
₩88,000,000 - ₩150,000,00035%
₩150,000,000 - ₩300,000,00038%
₩300,000,000 - ₩500,000,00040%
₩500,000,000 - ₩1,000,000,00042%
Over ₩1,000,000,00045%
Section 03

Related Hubs

South Korea tax connects with these hubs on CountryTaxCalc:

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FAQ

Frequently Asked Questions

What is the income tax rate in South Korea?

South Korea uses 8 progressive brackets from 6% to 45%, plus a mandatory 10% local income tax surtax. This means the effective rates are 6.6% to 49.5%. The 45% top rate (49.5% with local tax) applies to income over ₩1 billion (~$715,000 USD). Most employees in the ₩50-88 million range pay 24% + 2.4% = 26.4%.

What is the 19% flat tax for foreigners in South Korea?

Foreign workers starting employment in Korea by December 31, 2026 can elect a flat 19% national rate (20.9% with local tax) instead of progressive rates for up to 20 years. You must apply to the National Tax Service or your employer. The catch: you lose all deductions and credits. It's typically beneficial for foreigners earning above ₩130-150 million annually.

When are taxes due in South Korea?

Annual tax returns are due May 31 following the tax year. However, most employees don't file separately—employers perform year-end tax settlement (연말정산) in February, adjusting for credits and deductions. Self-employed individuals and those with multiple income sources must file the May return.

How are expats taxed in South Korea?

Expats benefit from the 5-year rule: if you've spent less than 5 years in Korea within any 10-year period, only Korean-source income is taxed. After 5 years, you're taxed on worldwide income. Foreign engineers and researchers may qualify for a 50% income tax reduction for 10 years under technology transfer agreements.
Disclaimer:This hub provides general information about South Korea taxation for educational purposes only. Tax rules change frequently and individual circumstances vary. Always verify current rates and rules with the official South Korea tax authority or a qualified local tax adviser. This is not tax or legal advice.
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