The calculation you need, step by step
Retirement income tax calculator
Check retirement income tax, local income tax and the after-tax reference amount on severance pay after the years-of-service and converted-pay deductions.
Reference results
Check the entries, then select Calculate.
Calculation steps
Subtract the years-of-service deduction from retirement income, divide by the years of service and multiply by 12 to get converted pay. Apply the basic rates to the tax base (converted pay minus the converted-pay deduction), then divide that tax by 12 and multiply by the years of service. Local income tax is 10% of the retirement income tax.
| Years of service | Deduction |
|---|---|
| Up to 5 years | KRW 1 million × years of service |
| Over 5 years, up to 10 years | KRW 5 million + KRW 2 million × (years − 5) |
| Over 10 years, up to 20 years | KRW 15 million + KRW 2.5 million × (years − 10) |
| Over 20 years | KRW 40 million + KRW 3 million × (years − 20) |
| Converted pay | Deduction |
|---|---|
| Up to KRW 8 million | Full converted pay |
| Over KRW 8 million, up to KRW 70 million | KRW 8 million + 60% of the excess |
| Over KRW 70 million, up to KRW 100 million | KRW 45.2 million + 55% of the excess |
| Over KRW 100 million, up to KRW 300 million | KRW 61.7 million + 45% of the excess |
| Over KRW 300 million | KRW 151.7 million + 35% 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 |
For retirement income of KRW 100 million and 10 years of service, retirement income tax is KRW 3,875,000 and local income tax KRW 387,500. You can first check pre-tax severance pay with the Severance pay calculator.
What this calculator cannot apply
Not reflected: non-taxable retirement income, taxation as wage income of executive retirement pay above the limit, interim settlements and aggregation of several retirement benefits, tax deferral when moved into a pension account and the reduction when received as a pension, tax already paid, and special rules for non-residents.
Scope of results and official alternatives
National Tax Service Hometax retirement income tax estimate ↗: check the tax there. The actual withholding is determined by your employer or retirement pension provider.
Calculation basis and official sources
- Income Tax Act Articles 22, 48, 55 and 146 ↗
- Income Tax Act Enforcement Decree Article 105 (years of service) ↗
This material is based on sources checked on November 7, 2026 (KST). Check subsequent amendments and transitional provisions for your particular case separately.