EITC Calculator
Calculate estimated Earned Income Tax Credit based on household type, income, and assets.
Overview
The Earned Income Tax Credit (EITC) is a refundable tax credit designed to support low-income working households in South Korea by supplementing their earned income and encouraging employment. As of 2026, the maximum credit is KRW 1.65 million for single-person households, KRW 2.85 million for single-earner households, and KRW 3.30 million for dual-earner households. Eligibility depends on total income and total assets meeting specific thresholds by household type.
Formula
The EITC is calculated using a phase-in, plateau, and phase-out structure based on household type and total wages. Single-person: phase-in up to KRW 4M (wages × 41.25%), plateau at KRW 1.65M (4M–9M), phase-out from 9M to 22M. Single-earner: phase-in up to KRW 7M (wages × 40.71%), plateau at KRW 2.85M (7M–14M), phase-out from 14M to 32M. Dual-earner: phase-in up to KRW 8M (wages × 41.25%), plateau at KRW 3.30M (8M–17M), phase-out from 17M to 38M. If total assets are between KRW 170M and 240M, only 50% of the credit is paid.
How to Use
- 1Select your household type (single / single-earner / dual-earner).
- 2Enter your previous year's total wages or business income.
- 3Enter the total value of your household's assets.
- 4Enter dependent family member information.
- 5Click 'Calculate' to see your estimated EITC amount.
Tips
- ✔The regular EITC application period is May 1–31 each year; late applications receive a 10% reduction.
- ✔Households with total assets exceeding KRW 240 million are ineligible for the EITC.
- ✔The semi-annual application system allows you to receive the first-half credit in December and the second-half credit in June.
- ✔You can easily apply through the National Tax Service Hometax portal and check your eligibility in advance.
FAQ
Q. Who is eligible for the Earned Income Tax Credit?
Households with earned income, business income, or religious worker income whose total income is below the threshold for their household type (KRW 22M for single, 32M for single-earner, 38M for dual-earner) and whose total assets are below KRW 240 million. Applicants must hold Korean nationality, and professional service business owners are excluded.
Q. When is the EITC paid out?
For regular applications filed in May, payment is made in September. Under the semi-annual system, first-half payments are made in December and second-half payments in June. Late applications are paid within approximately 4 months of filing.
Q. What is included in the asset calculation?
Total assets as of June 1 of the previous year for all household members, including land, buildings, vehicles, bank deposits, lease deposits, and securities. Debts are not deducted. Full credit is paid if assets are below KRW 170M; only 50% is paid if assets are between KRW 170M and 240M.
Q. What is the difference between single-earner and dual-earner households?
A dual-earner household is one where both the applicant and spouse each have total wages of KRW 3 million or more. A single-earner household has a spouse earning less than KRW 3 million, or has dependents but no spouse. Dual-earner households have a higher maximum credit but also a higher income threshold.
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