Taxes
Korean tax guides made simple
Topic guides
Scattered guides, put in the order you meet themTaxes
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Year-End Tax Settlement in Korea (2026 Income) — What to Do Before 31 December, in January and in February
Card spending, pension savings, donations and subscription deposits close on 31 December, and the 500,000 won marriage credit needs registration by 31 December 2026. January is for what the tax feed leaves out, February for splitting a bill, and five years for anything missed. 30 guides on a calendar.
Severance Tax Deferral Calculator (Korea) — Into an IRP Within 60 Days and No Tax Is Withheld, Refunds If Already Paid, 70%, 60% or 50% When Drawn as a Pension
Under Korean Income Tax Act Art. 146(2), retirement income paid into a pension account within 60 days is not taxed until drawn other than as a pension, and tax already withheld can be refunded. Drawn as a pension, the rate is 70%, 60% or 50% of the lump-sum rate.
Is Unemployment Benefit Taxable in Korea? — Jobseeker's Allowance, Parental Leave and Maternity Pay Are Tax-Free and Left Out of Total Pay (Income Tax Act Art. 12)
Korean Income Tax Act Art. 12(3)(e) makes unemployment benefit, parental leave benefit, reduced-hours benefit and maternity-related leave benefits under the Employment Insurance Act tax-free. They are left out of total pay: 24 million won of salary plus 9 million of parental leave benefit is 24 million (our example).
Severance Pay Income Type Checker (Korea) — Retirement Income, Wage Income or Tax-Free: Where 30 Days' Notice Pay and the 70% Shutdown Allowance Go
The Korean Income Tax Act sorts money paid on leaving into retirement income (Art. 22), wage income (Art. 20) or tax-free income (Art. 12). Severance and interim settlements are retirement income; unemployment benefit and absence compensation are on the tax-free list, the shutdown allowance is not. On 100,000 won a day, 30 days' notice pay is 3,000,000 won.
Capital Gains Carryover Basis Checker (Korea) — Gifted by a Spouse or Parent and Sold Within 10 Years, the Donor's Cost Applies (Income Tax Act Art. 97-2)
Sell land or a building received from a spouse or lineal relative within 10 years and the gain uses the donor's original cost, with gift tax paid as an expense. It doesn't apply if the sale would be one-home exempt or the carryover tax is lower. For shares it is 1 year.
Inherited House Capital Gains Exemption Checker (Korea) — Only a Home You Already Owned, Not One Gifted Within 2 Years (Decree Art. 155(2))
A household with one inherited home and one ordinary home is treated as owning one home when it sells the ordinary one. The ordinary home must already be held when the inheritance began; a home gifted by the deceased within 2 years before is excluded.
Burden-Gift Capital Gains Calculator (Korea) — Only the Debt Share Is a Sale: a KRW 1bn Home With a 400m Deposit Sells for 400m (Decree Art. 159)
In a Korean gift with assumed debt, the part equal to the debt the recipient takes on is treated as a sale. Sale price and cost are both scaled by debt ÷ gift value. A KRW 1bn home gifted with a 400m deposit, bought for 500m, gives a 400m sale price, 200m cost and 200m gain.
Tax Arrears 5-Million-Won Checker (Korea) — Credit Data After a Year, Licence Suspension or Revocation After Three Defaults
Korean national tax arrears of 5 million won or more, over a year old or after three defaults in a year, can be reported to credit bureaus. Unpaid tax from a licensed business can block renewals, and three defaults totalling 5 million won or more can bring suspension or revocation.
High-Value Tax Defaulter Listing Checker (Korea) — 200 Million Won Over a Year, Excluded at a 50% Paid Ratio
Korea can publish the names of those owing 200 million won or more in national tax more than a year overdue, but excludes them if the paid ratio (B + C) ÷ (A + B) reaches 50%. With A at 250 million and B at 0, paying 125 million before the committee meets gets there.
Tax Arrears Travel Ban Checker (Korea) — 50 Million Won, One of Six Circumstances, Nothing to Secure
Korea's NTS must request a travel ban for people owing 50 million won or more in national tax without good reason who meet one of six circumstances, whose debt can't be secured and who may evade collection. Once arrears drop below 50 million, the lift must be requested.
Tax Penalty Calculator — Non-filing 20%, Under-reporting 10%, Fraud 40%, Late Payment 0.022% a Day
Korea's Framework Act on National Taxes adds 20% of tax for not filing (interim returns included), 40% for fraud, 10% for under-reporting, plus 0.022% a day for late payment. 10 million won unfiled and 100 days late means 2.22 million won.
Capital Gains Final Return — 1–31 May Next Year, Skippable After Interim Returns, Not After Two or More
Korean residents with capital gains file a final return from 1 to 31 May the next year, but may skip it after interim returns, unless they filed two or more interim returns on progressive-rate assets that year. Foreign shares are first filed in May.
Capital Gains Interim Return Deadline Calculator — Property: 2 Months from Month-End; Shares: 2 Months from Half-Year End
In Korea, sell property and file an interim capital gains return within 2 months from the end of the month of sale; Korean shares within 2 months of the half-year end. File even at a loss; foreign shares and derivatives have no interim return. Sold 20 October, due 31 December.
Tax Review Reports for Large Sole Traders in Korea — 1.5bn, 750m or 500m Won in Revenue, File by 30 June
Income Tax Act Article 70-2 and Decree Article 133 require sole traders with revenue of 1.5 billion, 750 million or 500 million won or more, by sector, to file with a tax review report between 1 May and 30 June of the next year.
Simple Expense Rate Thresholds in Korea — Last Year Under 60m, 36m or 24m Won; Freelancers at 36 Million
Income Tax Decree Article 143(4) applies the simple expense rate to new businesses or those whose previous year's revenue is under 60, 36 or 24 million won by sector, if this year's revenue is also under the simple-books line. Freelance personal services sit in the 36 million group.
Multi-Child Car Tax Relief in Korea — Exempt for 3+ Children (1.4 Million Won Cap), 50% for 2, Clawed Back If Sold Within a Year
Article 22-2 of Korea's Restriction of Special Local Taxation Act exempts one child-rearing vehicle from acquisition tax for 3+ children under 18 (cars other than 7–10 seats capped at 1.4 million won) and gives 50% off for 2 (other cars over 1.4 million won: 700,000 off). Acquisitions to 31 December 2027.
Yellow Umbrella Deduction in Korea — 6 Million Won up to 40m of Business Income, 2 Million Over 100m, Other Income If Cancelled (Calculator)
Article 86-3 of Korea's Restriction of Special Taxation Act deducts Yellow Umbrella (small business mutual aid) contributions from business income, capped at 6, 5, 4 or 2 million won by business income. Property rental income is taken out by its share.
Disability Tax Breaks in Korea — No Age Limit, an Extra 2 Million Won, 15% Insurance Credit and No 7 Million Won Medical Cap
Korea's Income Tax Act puts disabled dependants in the basic deduction with no age limit (Art. 50), adds 2 million won a year (Art. 51), credits disability-only insurance at 15% and leaves disabled medical costs outside the 7 million won cap (Art. 59-4).
Year-End Tax Settlement When You Leave a Job in Korea — Done with Your Final Pay, Only Your Own Deduction Without a Declaration, May Return If No New Job
Article 137 of Korea's Income Tax Act has leavers settled when paid for the month they leave, applying only the personal basic deduction and standard credit without a declaration. A new employer in the same year re-settles (Art. 138); otherwise the May return is the window.
Business Registration in Korea — Within 20 Days of Starting, 1% of Sales If Late (0.5% for Simplified Taxpayers), and a 20-Day Rule for Input VAT
Article 8 of Korea's VAT Act requires registration for each place of business within 20 days of the start date, and a late registration adds 1% of the supply value from the start date to the day before applying. For a simplified taxpayer it is 0.5% of the supply price. The certificate is issued within 2 days of applying.
Extending a Korean Tax Payment Deadline — Up to 9 Months, Apply 3 Days Before, No Late-Payment Penalty Meanwhile
Korea's National Tax Collection Act lets the tax office extend a payment deadline, or allow instalments, on grounds such as disaster, business loss or 6 months or more of medical treatment. The period is within 9 months and the application is due 3 days before the deadline; apply 10 days before and hear nothing in 10 days, and it is deemed approved.
US Child Tax Credit — Up to $2,200 per Child, $1,700 Refundable, Under 17 and an SSN Required
The IRS states the Child Tax Credit as up to $2,200 per child, of which up to $1,700 is refundable as the Additional Child Tax Credit. The child must be under 17 at year-end, and both parent and child need a Social Security number valid for employment. The full amount applies up to $200,000 of income, $400,000 joint.
US Estimated Tax — In Scope From $1,000, Due 15 April, 15 June, 15 September and 15 January, Safe at 90% or 100%
An individual who expects to owe $1,000 or more on filing has to pay estimated tax in four instalments. They fall due on 15 April, 15 June, 15 September and 15 January of the following year, and paying the smaller of 90% of this year's tax or 100% of last year's avoids the penalty.
Late on a Korean Local Tax — 3% on a Bill Plus 0.66% a Month (3% Only Under 450,000 Won), 20% for Not Filing
Under Article 55 of Korea's Framework Act on Local Taxes, missing a bill's due date adds 3% of the tax, then 0.66% for each month. Under 450,000 won there is no monthly charge, and 60 months is the ceiling. Filed taxes carry 20% for non-filing and 10% for under-reporting, cut by 50% and 90% if corrected within 1 month.
Korea's Resident Tax — Individual Portion: Reference Date 1 July, Payable 16 to 31 August, Capped at 10,000 Won by Ordinance
Korea's Local Tax Act splits the resident tax into an individual, a business-place and an employee portion. The individual portion is charged on a person with an address on 1 July, payable 16 to 31 August, at a rate set by ordinance within 10,000 won. Household members, minors and benefit recipients are excluded.
Korea's Marriage Tax Credit of 500,000 Won — Register by 31 December 2026, Once Only, 1,000,000 Won if Both Spouses Claim
Article 92 of Korea's Restriction of Special Taxation Act deducts 500,000 won, once only, from a resident's global income calculated tax for the year in which a marriage is registered on or before 31 December 2026. The test is the registration date, not the wedding, and two spouses together get 1,000,000 won. The government's reform plan would abolish it.
Tax on Lecture and Manuscript Fees in Korea — 60% Deemed Expenses, 20% Withholding, 8% of What You Receive, Nothing at 50,000 Won or Less per Case
For other income such as lecture and manuscript fees, 60% of the amount received is deducted as necessary expenses and 20% is withheld on the remaining 40%, so income tax is 8% of what you receive. An other-income amount of 50,000 won or less per case is not taxed, which covers up to 125,000 won received. On 1,000,000 won the tax is 80,000 won.
Why Korean Employees Skip the May Tax Return — Wage Income Only, With Two Employers or a Missed Year-End Settlement Outside the Exception
Article 73 of Korea's Income Tax Act says people with wage income only, retirement income only, public pension income only and certain others need not file a final tax base return. The exception does not apply to pay from two or more employers, or where the employer did not withhold through the year-end settlement.
Reverse-Mortgage Interest Deduction in Korea — Up to 2 Million Won a Year Off Pension Income, Home Value 1.2 Billion Won or Less at Sign-Up, Claim Required
Article 51-4 of Korea's Income Tax Act deducts the year's interest cost on reverse-mortgage payments from pension income. Above 2 million won, 2 million is deducted; anything above the pension income amount is treated as nil. The home's standard value must be 1.2 billion won or less at sign-up, and it applies only on a claim.
Social Insurance Premium Deductions in Korea — National Pension, Health and Employment Insurance Premiums Deducted in Full Under Two Provisions
Article 51-3 of Korea's Income Tax Act deducts public pension premiums from global income, and Article 52 deducts the employee's share of health, employment and long-term care insurance premiums from wage income. No cap appears in the text. Paying 1.8 million and 1.5 million won takes 3.3 million off income.
Wage Income Deduction in Korea — 70% of the First 5 Million Won, Then 40, 15, 5 and 2%, a 20 Million Won Cap, 150,000 Won a Day for Daily Workers
Article 47 of Korea's Income Tax Act deducts 70% of total pay up to 5 million won, 3.5 million plus 40% up to 15 million, 7.5 million plus 15% up to 45 million, 12 million plus 5% up to 100 million and 14.75 million plus 2% beyond, capped at 20 million won. On 40 million won the deduction is 11.25 million.
Wage Income Tax Credit in Korea — 55% Up to 1.3 Million Won, Caps of 740,000 to 200,000 by Pay, and the 130,000 Won Standard Credit
Article 59 of Korea's Income Tax Act credits 55% of calculated tax on wages up to 1.3 million won and 30% above, capped at 740,000 won for total pay up to 33 million won, at least 660,000 up to 70 million, at least 500,000 up to 120 million and at least 200,000 beyond. Employees claiming no special deductions get a 130,000 won standard credit.
Child Tax Credit in Korea — 250,000 Won for One Child 13+, 550,000 for Two, 950,000 for Three, Plus 300,000 to 700,000 in the Year of Birth
Article 59-2 of Korea's Income Tax Act credits 250,000 won for one dependent child or grandchild aged 13 or over, 550,000 won for two, and 400,000 won more for each beyond two. In the year of birth or adoption a separate credit of 300,000 won for a first child, 500,000 for a second and 700,000 for a third or later applies.
Stamp Duty in Korea — 20,000 to 350,000 Won on Property Deeds, Homes Up to 100 Million and Loans Up to 50 Million Exempt, Per Copy
Article 3 of Korea's Stamp Tax Act charges deeds transferring property 20,000 won (up to 30 million won) to 350,000 won (over 1 billion), and article 6 exempts homes of 100 million won or less and loan agreements of 50 million won or less. Duty is due per copy, with joint liability for joint drafters.
Late Tax Return Penalty Relief in Korea — 50% Within a Month, 30% Within 3, 20% Within 6, on a 20% Non-Filing Penalty
Article 48 of Korea's Framework Act on National Taxes cuts the non-filing penalty (20% of tax due) by 50% if a late return is filed within a month, 30% within three months and 20% within six. The late-payment penalty of 22/100,000 a day is not reduced, so pay with the late return to stop it growing.
Income Tax Reduction for SME Employees in Korea — Youth 90% for 5 Years, Others 70% for 3 Years, 2 Million Won a Year, Jobs Started by End-2026
Article 30 of Korea's Restriction of Special Taxation Act cuts income tax by 90% for 5 years for young people who join an SME by 31 December 2026, and by 70% for 3 years for people 60+, with disabilities or returning from a career break, capped at 2 million won per tax year. Youth means 15 to 34 at contract, with up to 6 years of military service deducted.
Non-Taxable Pay Allowances in Korea — Meals, Car and Childcare 200,000 Won a Month, Childbirth Support in Full, Production Overtime 2.4 Million a Year
Article 12 of Korea's Income Tax Act and its Decree exempt meal allowances (where no meals are provided), car allowances and childcare allowances for children 6 or under up to 200,000 won a month each, and childbirth support paid up to twice within 2 years in full. Production workers' overtime is exempt up to 2.4 million won a year if monthly fixed pay is 2.6 million won or less and prior-year pay 37 million or less.
Choosing 80% or 120% Withholding on Korean Wages — Employees Pick the Table Rate, the Year's Tax Is the Same
Article 194 of Korea's Income Tax Decree lets employees ask for withholding at 120/100 or 80/100 of the simplified table amount. Year-end settlement evens out the year's tax: on 150,000 won a month, 80% withholds 360,000 won less a year but trims the February refund or adds to the bill by the same amount.
Insurance Premium Tax Credit in Korea — 12% for Protection, 15% for Disability-Dedicated, Up to 1 Million Won Each, Rent Guarantees Included
Article 59-4(1) of Korea's Income Tax Act credits wage earners 12% of protection-type premiums and 15% of protection premiums dedicated to people with disabilities, each up to 1 million won a year. That caps the credits at 120,000 and 150,000 won, and the decree includes rent deposit return guarantee fees for deposits of 300 million won or less.
Donation Tax Credit in Korea — 15%, 30% Above 10 Million Won, and a 10-Year Carry-Forward
Article 59-4(4) of Korea's Income Tax Act credits 15% of donations and 30% of the part above 10 million won. General donations are limited to 30% of income (a separate formula with religious giving), excess carries forward 10 years, and political and hometown love donations earn 100/110 up to 100,000 won.
Hometown Love Donation Tax Credit in Korea — 90,909 Won on 100,000, 40% up to 200,000, 15% Above
Article 58 of Korea's Restriction of Special Taxation Act credits hometown love donations at 100/110 up to 100,000 won, 40% from 100,000 to 200,000 won and 15% above that. A 100,000 won gift earns a 90,909 won credit and up to 30,000 won in thank-you gifts; the annual cap is 20 million won, and you cannot give to your own local government.
Overseas Shopping into Korea: 150 Dollars, 200 from the US — Measured Without Freight, and Supplements Miss the 200-Dollar Concession
The 150 dollars in article 45 of Korea's Customs Act rule is the goods price without freight, and the US 200 dollars is the list-clearance threshold in article 9 of the express-cargo notice. Twelve categories such as supplements and medicines are excluded from list clearance, and items bought from the same seller on the same day are combined.
One Korean Gift Tax Return Is Worth KRW 25 Million
File on time and 3% comes off; fail to file and 20% goes on — twenty-three percentage points on the same tax.
Korea’s Ten-Year Gift Rule — Aggregation Splits, the Deduction Merges
“Ten years” appears twice in the gift tax. Same number, opposite ways of counting people — which is where most of the confusion lives.
Korea's 2026 Tax Reform Bill — From Holding to Living There, and It Is Still a Bill
Almost every write-up says “here is what changes from 2027.” But this goes to the National Assembly on 3 September. One axis runs through all of it — not how long you held the home, but how long you lived in it.
Korean Inheritance Tax — Facts, Not Headlines (2026)
“A 20% financial-asset deduction” only holds between ₩100M and ₩1B — the provision actually has four bands.
Korea's Gift Tax Deductions — Marriage and Childbirth Together Are Still 100m Won
Paragraphs (1) and (2) each say “separately, 100m won,” which reads as 200m. Paragraph (3) then caps the sum at 100m.
Korea's Medical and Education Tax Credits — What That Parenthesis Releases, and What It Doesn't
The medical credit is not one rate but three, fertility treatment is 30%, and the two age tests are measured from opposite ends of the year.
Korea's Tax Calendar — What's Due in Every Month
Comprehensive real estate tax runs 1-15 December; property tax takes land in September, buildings in July, and splits only housing. Under ₩200,000 it is settled in July alone — and the car tax prepayment ceiling is 10%, not 5%.
Find Unclaimed Tax Refunds — A 5-Minute Self-Check (2026)
A notice from the tax office does not stop the five years running — the provision says so in as many words.
Korea VAT Explained 2026 — General vs Simplified, Filing & Refunds
The 104 million won line is not in the Act — VAT Act art.61 sets only a band from 80 million to 130% of it, delegating the figure to the Decree.
Amended Returns — Reclaiming Missed Deductions Within Five Years
We opened Framework Act on National Taxes art.45-2 — and found two three-month clocks running alongside the five years.
Freelancer 3.3% Tax Refund in Korea — 3% x 1.1, and Two Simple Expense Rates: 64.1% and 49.7%
We opened the provisions themselves. The 3.3% turns out to be 3% x 1.1, and the 8.8% takes three provisions multiplied together.
Side Income in Korea: Must You File in May? The Provision Lists Only Who Need Not
Income Tax Act art. 73 lists only who need not file. Its subparagraph 4 sends you to the Decree — which turns out to name just three trades.
Korean Car Tax Prepayment — 4.58% in January, 1.25% in September
The familiar 10% discount is out of date: the 2026 rate is 5%, and it covers only the months after you pay — September gives 1.25%.
Korea Dependent Deduction Explained — Income & Age Rules (2026)
1.5M won each. The 1M-won income and age rules, plus avoiding sibling double-claims — with cases.
Korea EITC & Child Tax Credit 2026 — Eligibility, Amounts, How to Apply
Cash for working households: 1.65M–3.3M won plus up to 1M won per child, filed in May.
Korea's Comprehensive Income Tax 2026 — Verified Against the NTS's Own Example
We recomputed the tax office's published worked example and matched it to the won. Plus what really counts toward the 15-million-won pension line.
Korea's Year-End Tax Settlement: the Credit-Card Rule Is Half Wrong
We ran the National Tax Service's own formula. Filling the 25% threshold with a credit card is worth exactly zero in tax.
How US Tax Brackets Actually Work (2026)
‘I'm in the 24% bracket so I pay 24%’ — wrong, and the myth costs people money.
US State Taxes 2026: Is It 7, 8, or 9 ‘No Income Tax’ States?
South Dakota says seven. The trackers say eight. Search says nine. Here's why the count differs — and what SALT does to the math.