Korea Year-End Tax Refund Calculator (2026)

How it works

• Order of calculation: gross salary → earned income deduction → personal, pension, health, employment insurance and card deductions → tax base → basic rates (6–45%) → earned income, child, pension, rent, insurance and medical credits → final tax. If you paid more than that during the year, you get the difference back.
• Card deduction starts above 25% of gross salary: credit cards 15%, debit cards and cash receipts 30%, traditional markets and public transit 40%. From 2026 the basic limit rises with children (salary up to ₩70 million: ₩3 million, ₩3.5 million with one child, ₩4 million with two or more).
• Child tax credit is ₩250,000 for one, ₩550,000 for two, and ₩400,000 for each child from the third. For 2026 it covers age 9 or over, excluding those born in 2017, and the age rises one year at a time to 13 or over from 2030.
• Pension savings and IRP earn a 15% credit on up to ₩9 million (12% above ₩55 million of salary). Monthly rent earns 17% on up to ₩10 million (15% above ₩55 million).
• If your itemized special credits total less than ₩130,000, the standard credit is better. This calculator picks the better of the two.
• Foreign employees may be able to choose a flat tax rate instead. This calculator uses the regular method only.

FAQ

What changed for 2026 year-end settlement?

The child tax credit now applies from age 9, excluding those born in 2017. The basic card limit rose by ₩500,000 with one child and ₩1 million with two or more (for salary up to ₩70 million). A spouse at a different address can also claim the rent credit.

How much card spending do I need?

Spending must exceed 25% of gross salary. With ₩50 million, the first ₩12.5 million earns nothing, then credit cards earn 15% and debit cards 30% on the excess. Use credit cards up to the threshold, then debit cards.

Where do I find the tax I paid?

Add up income tax on your payslips or see the prepaid tax on the withholding receipt from your employer. If you leave it empty, we estimate a withholding level.

Worked example

Example: with ₩50 million gross salary, one person, ₩15 million on credit cards, ₩3 million on debit cards and ₩500,000 on public transit, the first ₩12.5 million (25%) earns nothing. The remaining ₩2.5 million of credit card spending earns 15% (₩375,000), ₩3 million of debit card spending earns 30% (₩900,000) and transit earns 40% (₩200,000), for a card deduction of ₩1,475,000. At the 15% bracket that returns about ₩240,000 including local tax. Adding ₩6 million of pension savings cuts tax by a further ₩900,000 (₩990,000 with local tax).

Common mistakes

• Gross salary excludes non-taxable pay such as meal allowance. Entering your full contract salary overstates tax.
• Only one sibling may claim a parent. Duplicate claims are collected later with a penalty.
• Dual-income couples usually reach the 25% card threshold and the 3% medical threshold sooner on the lower earner.
• The 2026 child credit starts at age 9 but excludes those born in 2017, which avoids overlap with child allowance.
• If your employer withholds at 80%, you pay less monthly but get a smaller refund or owe more at settlement.

Explanation checked on 2026-10-30 · Spotted an outdated value? Tell us