Calculators · Korean income tax
Korea flat tax vs progressive tax
Compare annual income tax in a limited resident-employee model. The 19% national flat rate becomes 20.9% when local income tax is included.
Check eligibility before comparing
The election is for qualifying foreign employees, excluding daily workers and certain related-enterprise employment. Under the law reviewed on 9 September 2026, first work in Korea must start by 31 December 2026; the applicable period is up to 20 years from that first date. An application is required.
Residence status, employment history and remuneration rules need separate confirmation. This tool does not determine eligibility.
Eligibility checklist and official sourcesEnter annual amounts in KRW
Cash pay and relevant benefits for the year, including items exempt only under the progressive method. Confirm the flat-tax base with payroll; statutory exceptions can apply. Whole KRW, 0–1,000,000,000; omit commas.
Only the qualifying exempt amount included above. Enter 0 if none; do not subtract the same amount twice.
Actual annual contributions eligible for an income deduction. Coverage varies by nationality, visa and agreements; the tool does not assume you pay all four Korean insurances.
Results update below. Review the model assumptions before using the comparison.
Annual income tax in this model
Progressive method
- National income tax
- 4,942,500 KRW
- Local income tax
- 494,250 KRW
- Combined annual tax
- 5,436,750 KRW
Flat-tax method
- National income tax
- 11,400,000 KRW
- Local income tax
- 1,140,000 KRW
- Combined annual tax
- 12,540,000 KRW
The progressive amount is 7,103,250 KRW lower in this model.
This is not take-home pay, a refund estimate or a recommendation to elect a method.
How the progressive amount is calculated
- Salary after entered exemptions
- 60,000,000 KRW
- Earned-income deduction
- 12,750,000 KRW
- Basic personal deduction
- 1,500,000 KRW for the employee only
- Taxable income after these and entered contributions
- 45,750,000 KRW
- Earned-income tax credit applied
- 660,000 KRW
National progressive brackets are 6–45%. Other deductions, standard and special credits, dependants, rent, treaty relief and non-resident rules are omitted. Local tax is modeled as 10% of national tax; displayed amounts are rounded to KRW and are not payroll withholding instructions.
For a job change or annual reconciliation, follow the pay and tax checklist. The income-tax comparison does not establish a filing deadline or submit an election.