Overview

Inheritance Tax in South Korea is levied when a deceased person's estate is transferred to heirs. Progressive rates of 10% to 50% apply in five brackets after deducting debts, funeral costs, and inheritance deductions. Key deductions include basic deduction (KRW 200M), lump-sum deduction (KRW 500M), and spousal deduction (KRW 500M to KRW 3B).

Formula

Tax Base = Estate Value + Prior Gifts - Debts/Funeral Costs - Inheritance Deductions. Rates: Up to KRW 100M at 10%; 100M-500M at 20% (deduction 10M); 500M-1B at 30% (60M); 1B-3B at 40% (160M); Over 3B at 50% (460M).

How to Use

1. 1Enter the total estate value of the deceased.
2. 2Input deductible items such as debts, taxes owed, and funeral expenses.
3. 3Select heir composition (spouse, number of children, etc.).
4. 4Click Calculate to see total deductions, tax base, and calculated tax.

Tips

• ✔The spousal deduction covers the actual amount inherited by the spouse (within the legal share), from a minimum of KRW 500M to a maximum of KRW 3B.
• ✔You may choose the larger of basic deduction (KRW 200M) + personal deductions or the lump-sum deduction (KRW 500M).
• ✔Gifts made within 10 years (to heirs) or 5 years (to non-heirs) before death are added back to the estate.
• ✔The filing deadline is 6 months from the end of the month in which the death occurred.
• ✔Financial asset deductions (up to KRW 200M) may also be available.

FAQ