Year-End Tax Refund Calculator (Korea)
Enter your yearly salary and the tax already withheld to estimate the refund or the extra tax due, recalculated with the 2026 income tax rates.
How to use
- Enter your annual taxable salary, after non-taxable items such as the meal allowance.
- Enter the income tax and local income tax withheld over the year.
- Pick the number of dependants including yourself and the number of children who qualify for the child tax credit.
- Add any extra income deductions (for example card spending) and extra tax credits (medical, education, donations, pension accounts). Health, long-term care and employment insurance are estimated automatically.
- The refund or amount owed and the full calculation appear below.
Basis and sources
| Taxable income | Rate | Progressive deduction |
|---|---|---|
| 0 KRW – 14,000,000 KRW | 6% | 0 KRW |
| 14,000,000 KRW – 50,000,000 KRW | 15% | 1,260,000 KRW |
| 50,000,000 KRW – 88,000,000 KRW | 24% | 5,760,000 KRW |
| 88,000,000 KRW – 150,000,000 KRW | 35% | 15,440,000 KRW |
| 150,000,000 KRW – 300,000,000 KRW | 38% | 19,940,000 KRW |
| 300,000,000 KRW – 500,000,000 KRW | 40% | 25,940,000 KRW |
| 500,000,000 KRW – 1,000,000,000 KRW | 42% | 35,940,000 KRW |
| Over 1,000,000,000 KRW | 45% | 65,940,000 KRW |
Basic deduction 1,500,000 KRW per person, standard credit 130,000 KRW. Dependents' income/age tests and itemised deductions are not modelled.
Example: gross pay 40,000,000 KRW, 1 dependent (yourself), 2,000,000 KRW already withheld
- Taxable income 23,363,160 KRW → calculated tax 2,244,474 KRW
- After 814,000 KRW credits, final tax incl. local 1,573,521 KRW
- Withheld 2,000,000 KRW − final tax = refund 426,479 KRW
Sources
FAQ
How is the refund worked out?
Refund = tax already withheld − final tax. Final tax is the basic-rate tax on (salary − earned income deduction − deductions), less the tax credits, plus 10% local income tax.
What is the final tax on a 40 million won salary?
With one dependant and no other deductions: taxable base KRW 23,363,160, calculated tax KRW 2,244,474, credits KRW 814,000, final tax KRW 1,573,521 including local income tax.
How does the child tax credit work?
KRW 250,000 for one child, 550,000 for two, plus 400,000 for each child beyond two. For 2026 the child must be 9 to 20 years old (children born in 2017 are excluded).
What about the standard tax credit of KRW 130,000?
It applies only if you do not claim the medical, education, donation or insurance special credits or the rent credit. The calculator always adds it, so subtract KRW 130,000 from such credits before entering them.
When is the 2026 settlement?
In January and February 2027, normally with the February 2027 salary.