The biggest driver of your Korean year-end tax refund is the dependent (personal) deduction. Each dependent cuts your tax base by 1.5M won, so adding even one more noticeably boosts your refund. Yet people miss dependents by not knowing the age and income rules, or get penalized for siblings double-claiming a parent. Here's the 2026 breakdown.
Basic deduction — 1.5M won each
You, your spouse, and dependents you support get 1.5M won each — if they pass two gates: income and age.
| Who | Age | Income |
|---|---|---|
| You | None | None |
| Spouse | None | Annual income ≤ 1M won (wage-only: gross ≤ 5M won) |
| Parents/grandparents | 60+ | |
| Children/grandchildren | 20 or under | |
| Siblings | 20 or under, or 60+ |
Key. A person with a disability has no age requirement (income only). A spouse also has no age test — just the 1M-won income rule.
The tricky "1M won income" rule
- Wage income only → gross salary ≤ 5M won passes (after the wage deduction).
- Business/other income → income after expenses must be ≤ 1M won.
- Public pensions and financial income also count — check the amount.
Exceed it and there's no deduction, no matter how much you support them.
Additional deductions
| Type | Who | Amount |
|---|---|---|
| Elderly | Age 70+ | 1M won |
| Disability | Tax-law disabled | 2M won |
| Working woman | Qualifying | 0.5M won |
| Single parent | Raising a child alone | 1M won (not with the above) |
A supported mother aged 72 with no income: 1.5M basic + 1M elderly = 2.5M won.
Who qualifies? — cases
| Case | Verdict |
|---|---|
| Father 63, no income | Yes |
| Child 19, part-time gross 4.8M | Yes (wage ≤5M, age ≤20) |
| Mother with large public pension | No if income >1M |
| College child aged 22 | No (over age) — education credit separate |
| Disabled brother 45, no income | Yes (no age limit) |
Don't double-claim. If siblings each list the same parent, the tax system flags it and claws it back with penalties. Only one sibling should claim — usually the one in the higher tax bracket.
FAQ
My parent receives a public pension — deductible?
Pension counts as income; over 1M won means no deduction. Check the amount.
My child is over 20?
No basic deduction (over age), but education credits may still apply.
Dual-earner couple — who claims the child?
Only one; usually the higher-bracket spouse.
Dependent deductions are the backbone of your refund. Know the 1M-won income and age rules, and reclaim 1.5M won per person you'd been missing.
This is general tax information and may vary by situation. Confirm at Hometax or the helpline (126). See also comprehensive income tax and EITC & child credit.
