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Year-End Tax Settlement Calculator

Enter your salary, dependants, social insurance, card spending, pension savings and insurance, medical, education, donation and rent amounts to work through the 2025 Korean year-end tax settlement: taxable income, computed tax, credits and final tax, compared with the tax already withheld to show your refund or extra payment.

Tax year 2025

Salary and tax already withheld

The "total salary" line on your withholding statement: annual pay minus tax-free items such as the meal allowance (up to KRW 200,000 a month). This assumes salary is your only income.

The income tax deducted from your pay from January to December: add up your payslips, or use the "tax already paid" line (current and previous employers) on the withholding statement. Leave local tax blank to use 10% of the income tax.

Family (personal deductions)

People other than you and your spouse who get the KRW 1.5 million basic deduction: children 20 or under, parents 60 or over, siblings 20 or under or 60 or over, each with annual income of KRW 1 million or less (no age limit for a disabled person).

Social insurance and housing

The year's total deducted from your pay (the insurance lines of the withholding statement). Pension contributions and health / employment premiums are deducted in full.

Repayments on a loan for the lease deposit of a national-housing-size home, taken by a householder who owns no home: 40% is deducted, capped at KRW 4 million a year together with the subscription-savings deduction.

Card and cash-receipt spending (2025)

Put each amount in one box only. Only spending above 25% of salary counts, and the 25% is filled from the lowest-rate (credit card) spending first. The 30% culture and sports rate (pools and gyms from 1 Jul 2025) applies only if salary is KRW 70 million or less. Above that, enter these amounts in the box for how you paid (credit card, or debit / cash receipt); anything left in this box is treated as debit or cash spending (30%). Basic cap KRW 3 million (2.5 million above KRW 70 million salary), plus an extra cap for markets, transport and culture.

Pension, insurance, medical, education, donations, rent

Up to KRW 6 million in pension savings, KRW 9 million combined with a retirement account. 15% if salary is KRW 55 million or less, otherwise 12%.

Policies that do not pay back more than the premiums at maturity. Each capped at KRW 1 million a year.

15% of the part above 3% of salary. Other dependants are capped at KRW 7 million; you, people 65 or over, children 6 or under, disabled people and those with serious illnesses have no cap. Subtract any insurance reimbursements.

15%. Up to KRW 3 million per pre-school or school child and KRW 9 million per university student. Graduate school counts only for yourself.

Political and Hometown Love donations: 100/110 of the first KRW 100,000, 15% above (Hometown Love up to KRW 20 million). Special and general donations: 15%, 30% on the part above KRW 10 million, within income-based limits.

For a no-home householder renting a national-housing-size home (or one with a standard price of KRW 400 million or less) at their registered address. 15% if salary is KRW 80 million or less, 17% up to KRW 55 million, on up to KRW 10 million a year.

Edit the rules Tax year 2025
Employment income deduction (salary band, fixed amount, % of excess)
Above
Tax rates (taxable band, rate %, quick deduction)
Above
Income deductions (KRW, %)
Card spending (KRW, %)
Employment, child and pension credits (KRW, %)
Special credits (KRW, %)
Rent, marriage, standard credit, local tax (KRW, %)

Defaults are for tax year 2025 (settled in early 2026): the Income Tax Act as in force from 1 Oct 2025 (Act No. 21065; substantive text up to the 31 Dec 2024 amendment, Act No. 20615) and the Restriction of Special Taxation Act as in force from 11 Nov 2025 (Act No. 21138; substantive text up to Act No. 20617 of 31 Dec 2024). From tax year 2025 the child credit rose to KRW 250,000 for one child, 550,000 for two and 400,000 for each from the third; the marriage credit (Art. 92, marriages registered 2024–2026) was added; and the Hometown Love cap became KRW 20 million. The 2024-only card spending-increase deduction and extra donation credit above KRW 30 million do not apply. The 23 Dec 2025 amendments (such as higher card caps for families with children) apply from 2026 spending and are not included. Edit the numbers here if the law changes.

Estimated refund (incl. local tax)
406,170KRW
Final tax1,130,750
Effective rate (incl. local)2.49%
MethodItemised
Breakdown (KRW)
Total salary50,000,000
(−) Employment income deductionIncome Tax Act Art. 47−12,250,000
= Earned income37,750,000
(−) Personal deductions−4,500,000
(−) Pension contributions−2,250,000
(−) Health / employment insurance−2,420,000
(−) Subscription savings / lease loan0
(−) Card spending−2,275,000
= Taxable income26,305,000
× Tax rates = Computed tax2,685,750
(−) Employment income credit−660,000
(−) Child credit−250,000
(−) Insurance−120,000
(−) Medical−75,000
(−) Pension accounts−450,000
= Final income tax1,130,750
Local income tax (× 10%)113,075
(−) Income tax withheld−1,500,000
(−) Local tax withheld−150,000
= Balance (income tax)+ to pay / − refund, below KRW 10 dropped−369,250
= Balance (local tax)−36,920
Total−406,170

This is an estimate for reference. It simplifies the 2025 Korean year-end tax settlement for someone whose only income is salary, following the Income Tax Act and the Restriction of Special Taxation Act, and assumes you meet each deduction's conditions (age, income, home ownership and so on). Check the real figures on the withholding statement from your employer, the National Tax Service's Hometax year-end service and simulator, or the NTS call centre (126). This is not tax advice.

  • Included: employment income deduction, personal deductions (basic, 70+, disabled, working woman, single parent), pension, health and employment insurance, subscription savings and lease loans, card spending, the overall deduction cap, the employment, child, birth, pension-account, insurance, medical, education, donation, political, Hometown Love, rent and marriage credits, the standard-credit comparison, local income tax and rounding.
  • Not included: the SME employee tax reduction, the flat rate for foreign workers, details of tax-free pay (enter salary net of it), long-term mortgage interest, employee-stock, venture, small-business mutual aid and long-term fund deductions, foreign tax credits, carried-forward donations, Hometown Love gifts to special disaster areas (30%), business or financial income, and rules changed from tax year 2026. The under-KRW-1,000 no-collection rule is applied to income tax only; when income tax is collected, local tax below KRW 1,000 is still shown (local-tax rounding is simplified).

What this tool does

Enter your salary, dependants, social insurance, card spending, pension savings, insurance, medical, education, donation and rent amounts to work through the Korean year-end tax settlement for tax year 2025 (settled in early 2026) for an employee: taxable income, computed tax, credits and final tax, compared with the tax already withheld to show your refund or extra payment. It also checks automatically whether the KRW 130,000 standard credit would be better, and the rates and limits can be edited under 'Edit the rules'.

How it is calculated

Earned income is salary minus the employment income deduction (70% up to KRW 5M … 14.75M + 2% above KRW 100M, capped at 20M). Taxable income then subtracts personal deductions (KRW 1.5M per person plus extras), pension contributions, health and employment insurance, housing subscription savings (40% of up to 3M) and lease-loan repayments (40%, 4M combined), and card spending (the part above 25% of salary: credit 15%, debit 30%, markets and transport 40%, basic cap 3M or 2.5M above KRW 70M salary). Tax at 6–45% gives the computed tax; subtracting the employment credit (55%/30%, capped by salary), child credit (250,000 for one, 550,000 for two, 400,000 more for each from the third), pension accounts (15%/12%), insurance 12%, medical (15% above 3% of salary), education 15%, donations 15% (30% above 10M), rent and marriage credits gives the final tax; local income tax is 10% of it. Credits above the computed tax are lost. Example (what the page shows when it opens): salary KRW 50M, spouse and one child, pension 2.25M, health and employment insurance 2.42M, card spending 21M (credit 15M, debit 5M, markets 0.5M, transport 0.5M), pension savings 3M, insurance 1M and family medical costs 2M → earned income 37,750,000, deductions 11,445,000 (card 2,275,000), taxable income 26,305,000, computed tax 2,685,750, credits 1,555,000 (employment 660,000, child 250,000, insurance 120,000, medical 75,000, pension savings 450,000), final tax 1,130,750 and local tax 113,075. With 1.5M and 150,000 withheld, you get back 369,250 of income tax and 36,920 of local tax: KRW 406,170 in total.

Things to know

Frequently asked questions

How is the refund worked out?

Final tax (computed tax minus credits) minus the income tax already withheld from your pay. A negative result is refunded, a positive one is collected. Local income tax is settled the same way, comparing 10% of the final tax with what was withheld, and amounts below KRW 10 are dropped. In the KRW 50M example the final tax is 1,130,750 against 1.5M withheld, so you get back 369,250 plus 36,920 of local tax: 406,170.

Where do I find the tax already withheld?

Add up the income tax on your monthly payslips, or look at the "tax already paid" line (current and previous employers) on the withholding statement your employer issues. If you changed jobs, include the previous employer's amount.

I spent a lot on cards, so why is the deduction small?

Only spending above 25% of salary counts, and that 25% is filled from the low-rate credit card spending first. The basic cap is KRW 3M (2.5M above KRW 70M salary), and the extra cap (3M / 2M) needs market, transport or culture spending. In the example, KRW 21M of spending above the 12.5M threshold gives a deduction of 2,275,000.

What if my credits exceed the computed tax?

The excess is lost and not refunded (Income Tax Act Art. 61). That amount is treated as an unused pension-account credit, and donations can be carried forward for 10 years. With a final tax of zero, the most you can get back is everything withheld.

References

An estimate for reference, not tax advice. It simplifies the 2025 year-end settlement for someone whose only income is salary under the Income Tax Act (to Act No. 20615) and the Restriction of Special Taxation Act (to Act No. 20617), assuming every deduction's conditions are met. Check the exact figures on your withholding statement, Hometax or the NTS call centre (126).

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