The South Korea income tax calculator estimates your 2026 Korean income tax, local income tax (10% of national tax), and social insurance contributions. Korea uses progressive rates from 6% to 45%, making it one of Asia's higher-tax economies at upper income levels.
How South Korea Income Tax Works
South Korea income tax uses progressive rates from 6% to 45% with a local income tax of 10% of the national tax applied on top. The system provides several deductions to reduce taxable income.
Employment Income Deduction
Korea provides an employment income deduction similar to Japan: on income up to ₩15,000,000, deduct 70%; up to ₩45,000,000, deduct 40%; and so on. This significantly reduces taxable income for all salary earners.
Social Insurance System
The four major social insurance programs in Korea — National Pension (NPS), National Health Insurance (NHI), Employment Insurance (EI), and Long-Term Care Insurance — together take approximately 9.4% of an employee's salary. Employers contribute matching amounts on top.
FAQ
Is this South Korea tax calculator free?
Yes, completely free with no signup required.
How is South Korea income tax calculated?
Korea uses progressive rates from 6% to 45% on taxable income. An additional local income tax of 10% of the national income tax applies. Total effective rates for high earners can reach 49.5%.
What social insurance does Korea have?
Employees pay into National Pension (4.5%), National Health Insurance (~3.5%), Employment Insurance (~0.9%), and Long-Term Care Insurance (~0.5%). Total employee social contributions are approximately 9.4%.
Is there a personal deduction in Korea?
Yes. Residents get a basic personal deduction of KRW 1,500,000 per family member, plus an employment income deduction that reduces taxable wages on a sliding scale.