Overview

Comprehensive Income Tax in South Korea applies progressive tax rates to an individual's total annual income including interest, dividends, business, employment, pension, and other income. Rates range from 6% to 45% across eight brackets. The Income Tax Calculator helps you estimate your tax liability and effective tax rate.

Formula

Tax Base = Total Income - Deductions. Tax Amount = Tax Base x Rate - Progressive Deduction. 2024 Rates: Up to KRW 14M at 6%; 14M-50M at 15% (deduction KRW 1.26M); 50M-88M at 24% (5.76M); 88M-150M at 35% (15.44M); 150M-300M at 38% (19.94M); 300M-500M at 40% (25.94M); 500M-1B at 42% (35.94M); Over 1B at 45% (65.94M).

How to Use

1. 1Enter your total annual income.
2. 2Input applicable deductions (personal exemptions, insurance, medical expenses, etc.).
3. 3Click Calculate to see your tax base, calculated tax, and effective tax rate.

Examples

Background

Korea's income tax system dates back to the Income Tax Act of 1949. The current 8-bracket progressive rate structure (6–45%) is designed for income redistribution and tax equity, with brackets periodically adjusted for economic conditions. As of 2024, the top rate of 45% applies to taxable income exceeding KRW 1 billion. Annual income tax returns are filed in May, while employees with only wage income settle through year-end tax adjustment. Including local income tax (10% of national income tax), the effective top marginal rate reaches 49.5%.

Tips

• ✔Maximize both income deductions and tax credits to significantly lower your tax bill.
• ✔Taxpayers designated as 'faithful reporting' must have their returns verified by a tax accountant.
• ✔The annual income tax filing deadline is May 31.
• ✔Employees with only wage income can settle taxes through year-end tax adjustment instead.
• ✔Local income tax (10% of income tax) must be paid separately to the local government.

FAQ