Income Tax Calculator
Calculate comprehensive income tax based on Korean tax brackets
Input
Result
Tax Bracket Breakdown
| Bracket | Rate | Taxable Amount | Tax |
|---|---|---|---|
| ~14M | 6% | ₩14,000,000 | ₩840,000 |
| ~50M | 15% | ₩36,000,000 | ₩5,400,000 |
| Total | ₩6,240,000 | ||
This calculator is for informational purposes only and should not be considered as financial advice. Actual values may vary.
What is Income Tax Calculator?
The Income Tax Calculator computes your Korean comprehensive income tax and local income tax based on the progressive tax bracket system. Korea uses eight tax brackets with rates ranging from 6% for the lowest income level to 45% for income exceeding 1 billion won. This progressive structure means that only the income within each bracket is taxed at that bracket's rate, not your entire income. For instance, if your taxable income is 60 million won, the first 14 million is taxed at 6%, the next 36 million at 15%, and the remaining 10 million at 24%. Local income tax is an additional 10% of your calculated income tax, paid to local governments. The effective tax rate — your total tax divided by taxable income — is always lower than your highest marginal rate. This calculator shows you the exact tax amount from each bracket, the progressive deduction applied, and your overall effective rate, giving you complete transparency into how your tax bill is computed. Understanding income tax brackets is essential for tax planning, estimating your tax liability, evaluating the impact of additional income, and making informed decisions about deductions and credits. Note that taxable income is your gross income minus all eligible deductions and exemptions.
How to Use
- Enter the taxable income amount.
- Income tax, local income tax, and effective tax rate will be calculated automatically.
- Check the bracket breakdown to see how much tax comes from each bracket.
Tips & Best Practices
- Remember that taxable income is not the same as gross income — subtract all eligible deductions (earned income deduction, personal exemptions, special deductions) before entering the amount.
- If your income is near a bracket boundary, maximizing deductions through retirement savings, insurance premiums, or charitable donations can reduce your effective tax rate.
- The effective tax rate is the most meaningful number for comparing your actual tax burden — it is always lower than your marginal (highest bracket) rate.
- Use the bracket breakdown to understand exactly how progressive taxation works, which helps when estimating the tax impact of a raise or bonus.
- Plan major income events (stock sales, bonuses, freelance income) across tax years when possible to avoid pushing yourself into a significantly higher bracket in a single year.
Use Cases
Annual Tax Estimation
Enter your expected taxable income for the year to estimate your total tax liability and plan quarterly estimated tax payments.
Raise Impact Analysis
Compare the tax on your current income versus your income after a raise to see the actual after-tax value of the salary increase.
Freelance Income Planning
Calculate the tax on freelance or side income added to your employment income to understand the marginal tax impact.
Deduction Optimization
Test different taxable income levels to determine how much additional deductions you need to drop into a lower tax bracket.
FAQ
What are the Korean income tax brackets?
As of 2024: up to 14M 6%, up to 50M 15%, up to 88M 24%, up to 150M 35%, up to 300M 38%, up to 500M 40%, up to 1B 42%, over 1B 45%.
What is the effective tax rate?
The effective tax rate is the total tax divided by taxable income. Due to progressive taxation, it is always lower than the highest applicable bracket rate.
What is progressive taxation?
Progressive taxation applies higher rates to higher income levels. The top rate does not apply to your entire income — each bracket is taxed at its own rate.
What is the difference between taxable income and actual income?
Taxable income is your total income minus various deductions (earned income deduction, personal deduction, etc.). It is the base amount on which tax is actually calculated and is always less than total income.
Is my income data stored?
No, all calculations are performed in your browser and no income data is sent to or stored on any server.
Is local income tax calculated separately?
Local income tax is automatically calculated as 10% of the income tax. This calculator displays both income tax and local income tax together.
What income is included in comprehensive income tax?
Comprehensive income includes employment income, business income, interest income, dividend income, rental income, pension income, and other miscellaneous income. Each type has its own deduction rules before being combined into taxable income.
How is the progressive deduction calculated?
The progressive deduction is a shortcut that simplifies the bracket-by-bracket calculation into a single formula: Tax = (Taxable Income × Marginal Rate) - Progressive Deduction. The deduction amount ensures the result matches the sum of taxes from each bracket.
When is the income tax filing deadline in Korea?
The annual comprehensive income tax return is due by May 31 of the following year. Salaried employees typically complete year-end tax settlement through their employer in February, while freelancers and business owners file independently.
Are capital gains taxed under this bracket system?
Capital gains on real estate and certain assets are taxed separately under different rates and rules, not under the comprehensive income tax brackets. Stock capital gains have their own tax regime as well.
Can married couples file jointly in Korea?
No, Korea does not have joint tax filing. Each individual files their own income tax return based on their personal income, though spousal and dependent deductions are available.
What is the minimum income level that requires filing a tax return?
Salaried workers whose income tax is fully withheld by their employer and who complete year-end settlement typically do not need to file separately. Self-employed individuals and those with multiple income sources generally must file if their total income exceeds the basic exemption amount.