The calculation you need, step by step
Wage income tax calculator
Estimate the income tax and local income tax withheld from a monthly salary using the formulas in Korea’s Income Tax Act. This reference tool does not replace the official simplified withholding table lookup.
Reference results
Check the entries, then select Calculate.
Calculation steps
Monthly pay is multiplied by 12 to get annual gross pay, then the earned income deduction, the basic deduction (KRW 1.5 million per eligible dependant) and the National Pension deduction are subtracted to get the tax base. From the tax calculated at the basic rates, the wage income tax credit and child tax credit are subtracted, and whichever gives less tax is applied: the KRW 130,000 standard tax credit or the special deduction for health and employment insurance. The annual tax is divided by 12, multiplied by the withholding ratio, and amounts under KRW 10 are dropped. Local income tax is 10% of the income tax.
| Gross annual pay | Deduction |
|---|---|
| Up to KRW 5 million | 70% of gross pay |
| Over KRW 5 million, up to KRW 15 million | KRW 3.5 million + 40% of the excess |
| Over KRW 15 million, up to KRW 45 million | KRW 7.5 million + 15% of the excess |
| Over KRW 45 million, up to KRW 100 million | KRW 12 million + 5% of the excess |
| Over KRW 100 million | KRW 14.75 million + 2% of the excess |
| Tax base | Tax rate | Progressive deduction |
|---|---|---|
| Up to KRW 14 million | 6% | None |
| Over KRW 14 million, up to KRW 50 million | 15% | KRW 1.26 million |
| Over KRW 50 million, up to KRW 88 million | 24% | KRW 5.76 million |
| Over KRW 88 million, up to KRW 150 million | 35% | KRW 15.44 million |
| Over KRW 150 million, up to KRW 300 million | 38% | KRW 19.94 million |
| Over KRW 300 million, up to KRW 500 million | 40% | KRW 25.94 million |
| Over KRW 500 million, up to KRW 1 billion | 42% | KRW 35.94 million |
| Over KRW 1 billion | 45% | KRW 65.94 million |
Tax credits
The wage income tax credit is 55% of calculated tax up to KRW 1.3 million and 30% of the excess, with a cap that falls to KRW 740,000, 660,000, 500,000 or 200,000 depending on gross pay. The child tax credit is KRW 250,000 for one eligible child, KRW 550,000 for two, and for three or more KRW 550,000 plus KRW 400,000 for each child beyond two. For 2026 income, eligible children are dependants aged 9 or older (excluding those born in 2017).
What this calculator cannot apply
This is not a lookup in the National Tax Service simplified withholding table. That table assumes special deductions and special tax credits using its own formula, so it can differ from this result for the same pay. Months with bonuses, joining or leaving mid-year, judging non-taxable items, birth/adoption credits, year-end settlement deductions such as medical, education, donations, rent and pension accounts, the SME employee reduction and the flat rate for foreign workers are not reflected.
Scope of results and official alternatives
National Tax Service Hometax simplified withholding table ↗: check the withholding amount your employer applies. The final tax is settled in the year-end settlement, and this tool does not withhold or file on your behalf.
Calculation basis and official sources
- Income Tax Act Articles 47, 50, 55, 59, 59-2, 59-4 and 134 ↗
- Income Tax Act Article 59-2 (child tax credit) ↗
- Easy-to-find Legal Information: child tax credit age rules ↗
This material is based on sources checked on November 7, 2026 (KST). Check subsequent amendments and transitional provisions for your particular case separately.