How income tax works in South Korea
South Korea classifies individuals as residents or non-residents using domicile, residence days and the person's overall living relationship with Korea. A person with a Korean domicile or the relevant 183-day residence connection is generally a resident; non-residents are generally taxed only on Korean-source income.
Residents are generally taxed on worldwide income. A foreign resident whose total Korean domicile or residence period during the preceding ten years is five years or less can generally be taxed on foreign-source income only when it is paid in Korea or remitted to Korea, subject to the detailed statutory rules.
Global income includes business, wages, pensions, interest, dividends, rental income and other income. After deductions and credits, the national progressive table applies, while local income tax is calculated as 10% of the national income-tax amount.
Employees normally have monthly withholding and a year-end settlement through the employer. Individuals with business, rental, foreign, investment or other reportable income generally file a comprehensive income-tax return from May 1 to May 31 of the following year.
Combined interest and dividend income above KRW 20 million is generally included in global income and taxed at progressive rates rather than remaining at the ordinary withholding rate. Foreign financial income that was not withheld in Korea can create a filing issue even below the usual domestic threshold.
A foreign employee who first provides services in Korea by December 31, 2026 may elect a 19% national flat tax on qualifying employment income for up to 20 years from the first service date. The election generally prevents the use of ordinary income deductions, exemptions and credits, and local income tax remains additional.
Income tax brackets in South Korea
| Bracket | Rate | Notes |
|---|---|---|
| Up to KRW 14,000,000 | 6% | |
| KRW 14,000,001 - 50,000,000 | 15% | Less KRW 1,260,000 |
| KRW 50,000,001 - 88,000,000 | 24% | Less KRW 5,760,000 |
| KRW 88,000,001 - 150,000,000 | 35% | Less KRW 15,440,000 |
| KRW 150,000,001 - 300,000,000 | 38% | Less KRW 19,940,000 |
| KRW 300,000,001 - 500,000,000 | 40% | Less KRW 25,940,000 |
| KRW 500,000,001 - 1,000,000,000 | 42% | Less KRW 35,940,000 |
| Above KRW 1,000,000,000 | 45% | Less KRW 65,940,000 |
Tax rates at a glance
- Up to KRW 14 million
- 6%2026
- KRW 14m - 50m
- 15%
- KRW 50m - 88m
- 24%
- KRW 88m - 150m
- 35%
- KRW 150m - 300m
- 38%
- KRW 300m - 500m
- 40%
- KRW 500m - 1bn
- 42%
- Above KRW 1bn
- 45%
- Local income tax
- 10% of national tax
- Qualifying foreign-worker flat tax
- 19% national
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesExpatsFreelancersFoundersCross-border workers
Watch out for
- The progressive rates apply to taxable income after the relevant employment-income deduction, personal deductions, pension deductions, other deductions and credits. Gross salary is not the same as the tax base.
- Local income tax is not included in the national table. A 45% national marginal bracket generally means a 49.5% combined ordinary income-tax rate before social insurance and other adjustments.
- The 183-day test is not a mechanical visa rule. Domicile, family, occupation, assets and whether an absence is temporary can affect the residence analysis, and the 2026 two-tax-year rule can catch people who split their stay across calendar years.
- The 19% foreign-worker election can be attractive for high earners, but it is not automatically better. The taxpayer generally cannot use ordinary deductions, exemptions or credits, and the 2026 tax-revision bill proposes a future 21% rate.
- Year-end settlement is not a complete filing substitute for people with foreign salary, rental income, business income, substantial dividends, foreign accounts or other global income.
Frequently asked questions
What are South Korea's income-tax brackets?
The national individual rates run from 6% to 45% across eight brackets. The top 45% rate applies above KRW 1 billion of taxable income, and local income tax generally adds 10% of the national tax amount.
Do expats pay tax on worldwide income in South Korea?
A Korean tax resident is generally taxed on worldwide income. A qualifying foreign resident with no more than five years of Korean residence or domicile during the prior ten years can have a narrower rule for foreign-source income paid or remitted to Korea.
Can foreign workers use a flat tax rate in South Korea?
A qualifying foreign employee who first provides services in Korea by December 31, 2026 may elect a 19% national flat rate on employment income for up to 20 years. Local tax is additional, and ordinary deductions and credits generally do not apply under the election.