Income tax in South Korea 2026

Global income climbs eight steps from 6% to 45% above KRW 1 billion, and local income tax adds one tenth of the national bill — so the true top rate is 49.5%.

Employees rarely file: the January 'year-end settlement' through the employer finalizes most salary earners' tax.

At a glance

top rate: 45% + 4.5% local = 49.5% above KRW 1 billion
entry band: 6% on the first KRW 14 million
tax year basis: Calendar year
filing deadline: May of the following year; interim prepayment in November
residency basis: Worldwide for residents (home or 183-day abode); newcomers' remittance basis for 5 years
regime flag: Foreign employees: elective flat 19% for 20 years (start by end-2026)

Rates

Global income scale (2026)

Taxable income (KRW million)	Marginal rate	With 10% local surtax
0 – 14	6%	6.6%
14 – 50	15%	16.5%
50 – 88	24%	26.4%
88 – 150	35%	38.5%
150 – 300	38%	41.8%
300 – 500	40%	44%
500 – 1,000	42%	46.2%
Over 1,000	45%	49.5%

Marginal rates apply within each band.

Employment-income deduction (2026)

Salary (KRW)	Deduction	Note
Up to 5,000,000	70% of salary	Capped at KRW 20 million overall
5m – 15m	3.5m + 40% of excess
15m – 45m	7.5m + 15% of excess
45m – 100m	12m + 5% of excess
Over 100m	14.75m + 2% of excess

Thresholds & allowances

Basic deductionKRW 1.5 million per person
Self, spouse and dependants; +KRW 1m over-70s, +2m disabled, +0.5m female household heads
Employment tax credit55% / 30%
55% of the first KRW 1.3 million of tax, 30% beyond — capped by income bracket
Child creditsKRW 250,000 – 400,000+
Per child count (KRW 400,000 each from the third), plus newborn credits of KRW 300,000–700,000 by birth order
Expense credits15% / 12%
Medical and education at 15%, insurance premiums 12%, donations 15% (30% over KRW 10 million)
Private pension credit12% of contributions
15% for lower earners; contributions credited up to KRW 6 million a year
Housing deductionsKRW 0.6 – 20 million
40% of lease-deposit savings and loan repayments, plus long-mortgage interest for modest homes

Surcharges

Local income tax10% of the income-tax liabilityover All income tax, at every level

Residency

Residency trigger

A 'juso' (domicile-like base) or a habitual abode of 183+ days in the year makes you resident and worldwide-taxed; foreign residents with 5 or fewer resident years in the past 10 enjoy the remittance basis on foreign income.

Non-resident treatment

Non-residents pay only on Korean-source income under broadly resident rules, with final withholdings covering most passive flows; a business needs a domestic place of business to be net-taxed.

Notes

The foreign-employee flat 19% election (20.9% with local tax) now runs 20 years from starting Korean work — a start date before 31 December 2026 locks it in.
Qualified foreign technicians in strategic-materials fields can exempt 50–70% of salary for extended periods.
Business losses carry forward 15 years; a minimum tax applies to business earners.
Interim prepayment (half of last year's tax) falls due at the end of November.
Departing long-term residents holding 4%+ stakes or KRW 300 million+ of shares face the emigration exit tax at 20/25% — covering foreign-company shares from 2026.
Financial income (interest plus dividends) enters the global scale only above KRW 20 million a year.

FAQ

What is South Korea's top income tax rate?

45% on taxable income above KRW 1 billion — 49.5% including the 10% local income surtax.

What is the expat flat-tax election?

Foreign employees starting work in Korea by 31 December 2026 can choose a flat 19% (20.9% with local tax) on employment income for 20 years, instead of the progressive scale.

Do most employees file returns?

No — the January year-end settlement through the employer replaces filing for most of Korea's salary earners; May returns are mainly for the self-employed and those with financial income over KRW 20 million.

Figures: tax year 2026, compiled from public sources. Not tax advice.

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