When does the flat 19% beat progressive?

Typically once annual taxable income exceeds roughly ~₩130-150M (varies with dependents). Below that range, progressive yields lower tax thanks to deductions and credits. Use this calculator to estimate your specific crossover, then verify with NTS hometax for filing.

Resident vs non-resident — which am I?

Resident: stayed 183+ days in Korea in a calendar year, OR have your 'center of life' in Korea (family, primary home). Taxed on worldwide income. Non-resident: less than 183 days, no center of life. Taxed only on Korea-source income, usually a flat 19% withheld at source. Most expats with Korean jobs become residents in their second year.

Does the flat rate include local tax?

No — the headline 19% is national income tax only. Local income tax (지방소득세) of 10% of the national tax adds 1.9% on top, for an effective 20.9%. This calculator shows both separately.

What about 4대보험 (social insurance)?

Foreign workers usually pay the same 4대보험 as Koreans (national pension, health, long-term care, employment insurance) — about 9.4% of monthly salary. Some bilateral pension agreements (US, Canada, Japan, Australia, etc.) allow you to opt out of national pension and credit it to your home country. Verify with your embassy + your employer.

Korea Foreigner Income Tax Special Tax Treatment §18-2 · Apr 2026

Korea lets foreign workers pick a 19% flat tax (plus 1.9% local = 20.9% total) for the first 20 years instead of the standard 6-45% progressive scheme. This calculator picks whichever is cheaper for your salary.

Annual taxable income (KRW)

Gross salary minus standard 4대보험 contributions if your employer reports the after-insurance figure.

Dependents (incl. self)

Self + spouse + kids + supported parents

Status

Flat 19% + 1.9%

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Progressive 6-45%

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Enter your annual income to compare.

How it works

Flat 19% (Special Tax Treatment Art. 18-2): 19% of taxable income, no deductions. + 1.9% local income tax = 20.9% total. Available for first 20 years from initial Korean employment.
Progressive (default): 6%-45% in 8 brackets. After standard deductions:
- Earned-income deduction (sliding, max ₩14.75M+)
- Personal deduction (₩1.5M × dependents)
- Earned-income tax credit (capped ₩500k-740k)
Local tax: 10% of national income tax — same in both cases.
Resident vs non-resident: non-residents typically forced into 19% flat (no progressive option). Residents can choose.

⚠ Simplified: ignores child tax credits, medical/insurance/pension deductions, special foreign-employee deductions, etc. Always confirm with NTS hometax (hometax.go.kr) or your employer's tax agent.

FAQ

What is Korea's 19% flat tax for foreigners?

Special Tax Treatment Art. 18-2: foreign workers can pick 19% flat (+1.9% local) for first 20 years. No deductions/credits — pure 19% × taxable income.

When does flat beat progressive?

Roughly when annual taxable income > ~₩88M. Above ~₩150M, flat is almost always cheaper.

Resident vs non-resident?

183+ days in Korea = resident (taxed on worldwide income). <183 = non-resident (taxed only on Korea-source).

Does flat rate include local tax?

No — 19% is national. + 10% local (1.9%) = 20.9% effective.

What about 4대보험?

Foreign workers usually pay 4대보험 like Koreans. Bilateral pension agreements (US/CA/JP/AU/...) may allow opt-out of NPS.

Korea Foreigner Income Tax Special Tax Treatment §18-2 · Apr 2026

How it works

FAQ

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