Year-end tax settlement articles are mostly read in January. But the card deduction is already closed on 31 December. Opening the preview in January leaves nothing you can change.
The window where you can still change something is now through December. So this calculator does not try to guess your refund — it answers one question: “have I cleared the threshold, and if not, how much is left?” That is the only thing that should change which card you reach for over the remaining months.
1. What you get. The deduction starts only on the amount above 25% of your gross pay. Past that line the rate splits by payment method — credit card 15% / debit card and cash receipts 30% / traditional markets and public transport 40%.
2. What people miss. This is an income deduction, not a tax credit — you get back only that amount multiplied by your own marginal rate. And the threshold eats the lowest-rate spending first. That is where “credit card up to the threshold” comes from.
3. How to use it. Enter what you have spent so far, split by payment method. If you have not cleared the threshold it shows how much is left; if you have, it shows what is worth using from here on.
| Basic deductible credit · debit · cash | 0 |
| Additional deductible markets · transport · culture | 0 |
| Total after ceilings | 0 |
This is the deductible income amount. The tax you actually save is that figure multiplied by your own marginal rate. Ceilings used: gross pay 70m won or less — basic 3m, additional 3m; above 70m — basic 2.5m, additional 2m. Whether spending above the basic ceiling carries over into the additional ceiling could not be confirmed, so it is not applied — the Hometax preview is the authoritative figure.
The threshold comes first — 25% of gross pay
However much you spend on cards, the deduction is zero until you pass 25% of gross pay. Only the amount above that line enters the calculation.
| Gross pay | Threshold (25%) | Below this |
|---|---|---|
| 30m won | 7.5m won | deduction zero |
| 50m won | 12.5m won | |
| 70m won | 17.5m won | |
| 100m won | 25m won | |
| The threshold runs off gross pay, not take-home pay. And the higher your pay, the higher the threshold climbs with it. | ||
Past the line, the payment method decides
| Payment method | Rate | Condition |
|---|---|---|
| Credit card | 15% | — |
| Cash receipt · debit card · prepaid card | 30% | — |
| Books · performances · museums · galleries · cinema tickets | 30% | gross pay 70m won or less only |
| Swimming pool · gym facility fees | 30% | spending from 1 July 2025, gross pay 70m won or less only |
| Traditional markets | 40% | additional deduction — sits under its own ceiling |
| Public transport | 40% |
Why “credit card up to the threshold”
The threshold does not come off evenly — it eats the lowest-rate spending first. Which is why people say the amount that will vanish anyway is best filled with the lowest-rate card.
On gross pay of 50m won with 17.5m won spent over the year, it splits like this.
That said, “credit card up to the threshold” is only half right. If you already spent it early in the year, the only thing still in your hands is what you use after the threshold. Which is why checking in October is worth something and checking in January is not.
There are two ceilings
| Ceiling | Gross pay 70m won or less | Above 70m won |
|---|---|---|
| Basic ceiling credit · debit · cash receipt | 3m won | 2.5m won |
| Additional ceiling markets · transport · culture and sport | 3m won a year | 2m won a year |
| Hitting a ceiling means spending more adds nothing. The calculator says so when you reach one. | ||
Not everything you put on a card counts
Some spending is excluded outright. Take these out before entering your figures.
| Excluded | Note |
|---|---|
| Car purchases | used cars: only 10% of the price counts |
| Car lease payments · insurance premiums | excluded entirely |
| Education expenses | including daycare fees |
| Utilities and public charges | apartment management fees · electricity · water · gas · telecom · TV licence · road tolls |
| Gift certificates and other securities | excluded entirely |
| Property subject to acquisition or registration tax | real estate, vehicles and the like |
| Duty-free goods | duty-free shops and similar |
| Rent already claimed as a rent tax credit | if you claimed it under the monthly rent tax credit, it drops out here |
Telecom bills and apartment management fees are excluded — not knowing that is how people think they cleared the threshold when they have not. Buying a car throws it off by more.
Common questions
Do I get back the amount the calculator shows?
No. This is an income deduction, so it reduces your taxable base by that amount; the tax you actually save is that figure times your marginal rate. In the 15% band, a 1m won deduction saves 150,000 won; in the 24% band, 240,000 won.
Can I include my spouse's or parents' cards?
Spending by dependants you claim as basic deductions is combined. Who qualifies depends on income and age tests — check the dependant deduction article first.
Where do I see what I have actually spent?
Hometax opens its “year-end settlement preview” around October, carrying January–September card spending. The simplified data arrives around 15 January, which is already too late to act on.
My gross pay is exactly 70m won — which side?
The tables split at “70m won or less” and “above” — exactly 70m falls on the or less side. If you are near the line, check the definition of gross pay first: it is the figure after non-taxable income is removed.
I heard this changes next year
The tax reform proposal of 3 August 2026 includes a rework of the card deduction — the public transport add-on folds into the basic deduction, and the gross-pay test on books and performances is dropped in exchange for cutting the additional ceilings by 1m won each. But it is still a government proposal and would take effect from 2027 at the earliest, so it does not touch this calculator. Details are in the 2026 tax reform proposal article.
Sources used
- Agency guidance — National Tax Service, 2025 Year-End Tax Settlement Guide for Withholding Agents. Source for the rates by payment method, the basic and additional ceilings, and the exclusion list. The guide for each new income year is posted to the NTS year-end settlement hub in November–December.
- Agency service — Hometax year-end settlement. Where the preview and simplified data open, and where your own actual spending is confirmed.
- Agency helpline — NTS tax counselling centre (126).
- Our own calculation — the threshold figures, the comparison by payment mix (750k vs 1.5m won) and the calculator's arithmetic are ours, applying the rates and ceilings above.
Where to check further
- Your actual spending so far — check it in the Hometax “year-end settlement preview”. This calculator works only from what you type in. Excluded items mixed into your figures throw it off by exactly that much.
- Whether spending above the basic ceiling carries into the additional ceiling — we could not confirm it. The NTS tables list the two ceilings side by side without stating that any excess moves — the counselling centre (126) or the preview result is the authority. The calculator assumes no carry-over.
- The guide for the 2026 income year — posted to the NTS year-end settlement hub in November–December. When you open the page, check the income year first — the previous edition stays up until the new one lands.
Written as of August 2026. Rates, ceilings and exclusions come from the National Tax Service year-end settlement guide; the threshold figures, the comparison by payment mix and the calculator's arithmetic are ours, and marked as such. This calculator produces an estimate — the authoritative figures are the Hometax preview and your employer's settlement result. This is general tax information and does not guarantee the correctness of any individual filing. If your income comes from more than one source, see the comprehensive income tax article too. The full list of what to do before December is in preparing for year-end tax settlement.
