If someone in your family is disabled, four deductions stack at year-end settlement. The Korean Income Tax Act puts disabled dependants into the basic deduction with no age limit (Article 50), adds an extra deduction of 2 million won a year (Article 51), credits disability-only insurance at 15%, and leaves disabled people’s medical costs outside the 7 million won cap (Article 59-4). Each provision is set out below.
1. No age limit for disabled dependants. With total income of 1 million won or less, the basic deduction is 1.5 million won.
2. An extra 2 million won a year is added on top.
3. Disability-only insurance at 15% (up to 1 million won), and no 7 million won cap on disabled people’s medical costs.
Four deductions — Articles 50, 51 and 59-4
| Deduction | What the Act says | Worth noting (ours) |
|---|---|---|
| Basic (Art. 50(1)3) | 1.5 million won a year per dependant in the household. Disabled people under Article 51(1)2 aren’t subject to the age limits | The income test (1 million won or less, or wages of 5 million won or less only) still applies |
| Additional (Art. 51(1)2) | 2 million won a year per disabled person | Only for people in the basic deduction |
| Insurance (Art. 59-4(1)) | Disability-only protection insurance 15%, other protection insurance 12% — each capped at 1 million won a year | For residents with wage income |
| Medical (Art. 59-4(2)) | 15% of medical costs. The 7 million won cap applies only to item 1; costs for yourself, people 65+, children 6 or under and disabled people (item 2) have no cap | The 3%-of-pay threshold still counts — see the example |
Article 50(1)3(b) also says that where a child and the child’s spouse are both disabled, the spouse is included too. The full dependant rules are in dependant deduction.
How much — our example
Income deduction. One disabled dependant means the 1.5 million won basic deduction plus the 2 million won additional deduction: 3.5 million won off global income. How much tax that saves depends on your rate, so we haven’t computed it.
Insurance. Pay 1.2 million won of disability-only insurance and the credit is 15% of the 1 million won cap: 150,000 won. Ordinary protection insurance would give 12%, or 120,000 won.
Medical. Say a worker with total pay of 40 million won spends 8 million won on a disabled dependant’s care and has no item-1 costs. 3% of pay is 1.2 million won; with no item-1 costs, all of it comes off item 2. (8 million − 1.2 million) × 15% = 1.02 million won. The figures are our example; other rates in the article (20% for premature babies, 30% for fertility treatment) and Decree details are left out.
| Example | Working | Worth noting (ours) |
|---|---|---|
| Income deduction | 1.5m + 2m = 3.5 million won | Tax effect depends on the rate |
| Disability insurance 1.2m | 1m × 15% = 150,000 won | The 200,000 won over the cap gets nothing |
| Disabled medical 8m | (8m − 1.2m) × 15% = 1.02 million won | No 7 million won cap |
Checklist
- ☐ Is the disabled dependant’s total income 1 million won or less? (Age doesn’t matter)
- ☐ Did you claim the 2 million won additional deduction with the 1.5 million won basic?
- ☐ Is the policy designated “disability-only”? It decides 15% versus 12%
- ☐ Did you list disabled medical costs separately from ordinary ones (capped at 7 million won)?
- ☐ Check which disability proof your employer or the NTS needs
Questions that remain
Who counts as “disabled”?
Article 51(1)2 says “a person prescribed by Presidential Decree”. We didn’t read the Decree this time, so check its scope and NTS guidance.
My parent is under 60 but disabled. Do they count?
Article 50(1)3 says disabled people aren’t subject to the age limits, which we read as lifting the 60-or-over test for parents too. The income test still applies.
Sources
- Korean law database (law.go.kr) — Income Tax Act Arts. 50, 51, 59-4 — source (current text, effective 1 July 2026, Act No. 21221; checked 19 October 2026). Basic deduction of 1.5 million won and no age limit for disabled people; 2 million won additional deduction; 15% and 12% insurance credits each capped at 1 million won; 15% medical credit, scope of the 7 million won cap and the 3% subtraction.
- Not read. The Enforcement Decree (who counts as disabled, proof), what counts as a medical cost, NTS guidance.
- What we added. The “worth noting” column and the Korean everyday gloss.
Where to check further
- NTS Hometax simplified settlement — how disabled medical and insurance costs were picked up.
- Your employer’s payroll — how to submit disability proof.
Written on 19 October 2026. The content is from the source; the glosses are ours.
