Korea Income Tax Calculator for Foreign Workers
Foreign workers in Korea can choose a 19% flat tax instead of the progressive rate. This calculates both side by side and shows which one costs you less, and at what salary it flips.
Above ₩161,800,000 a year, the flat rate becomes the cheaper option.
Choosing the flat rate means giving up every exemption, deduction and credit. Your whole salary is multiplied by 19%, and local income tax adds another 10% of that — 20.9% in total.
The flat rate is available for 20 years counting from the tax year you first worked in Korea. Some cases are excluded, such as working for a specially related company.
You are a resident if you stay in Korea 183 days or more in a tax year, or keep a domicile here. Residents are taxed on worldwide income; non-residents only on Korean-source income.
This is an estimate. Card spending deductions, medical and education credits, and tax treaty exemptions are not included. Confirm with Hometax or your payroll team before filing.
A choice Koreans do not have
If you work in Korea on a foreign passport, you can pay income tax in one of two ways. Either the normal progressive scale that everyone else uses, or a flat 19% applied to your whole salary. The flat option comes from Article 18-2 of the Restriction of Special Taxation Act.
The flat rate is simple, and that simplicity is the price. You give up every exemption, every deduction and every credit — the earned income deduction, the personal deduction for your family, the earned income tax credit, medical and education credits, all of it. Nineteen percent of the whole salary, plus local income tax at 10% of that, comes to 20.9%.
So at a modest salary the normal method wins by a wide margin, and at a high salary the flat rate takes over. Where exactly it flips depends on how many dependants you claim and what you pay in social insurance, which is why it differs from person to person. This calculator runs both and tells you where your own crossover sits.
Twenty years, then it is gone
The flat rate is available for twenty years, counted from the tax year in which you first worked in Korea. It used to be five years; it was extended to twenty in 2023. After that only the normal method remains.
Not everyone qualifies. There are exclusions — working for a company you are specially related to, for instance. Check with your payroll team or the district tax office before you count on it.
You choose each year, at year-end settlement or when you file in May. Picking the flat rate once does not lock you in; you can take whichever is cheaper the following year.
Resident or non-resident
You are a resident if you spend 183 days or more in Korea during a tax year, or keep a domicile here. Residents are taxed on income earned anywhere in the world; non-residents only on income that arises in Korea.
Nationality has nothing to do with it. A foreign passport holder who meets the test is a resident, and a Korean national who does not is a non-resident. This calculator works from the salary you are paid in Korea, so it applies either way.
Social insurance is a separate matter. Health insurance is mandatory once you stay six months or more. National Pension may be waived if your country has a social security agreement with Korea and you keep paying at home — switch the pension toggle off to see that case.
Frequently asked
Won't my company handle this for me?
Your company runs the year-end settlement, but it will not work out which method is cheaper for you and recommend it. The flat rate has to be applied for. Calculate it yourself and tell payroll which one you want.
Do I get a refund if too much was withheld?
Yes. If the tax withheld from your monthly pay exceeds your final assessed tax, the difference comes back at year-end settlement. Choosing the flat rate changes the assessed tax, so it changes the refund too.
Can I get my National Pension contributions back when I leave?
For some nationalities yes, a lump-sum refund on departure. For others no. It depends on the social security agreement between Korea and your country. Ask the National Pension Service about your specific nationality.
Rates as of 2026년 기준. These figures are for reference only and carry no legal weight. Check your payslip and the relevant authority for exact amounts.