How it works
This page converts a Korean annual salary into the amount you actually receive. It follows the Income Tax Act for earned income and the 2026 rates of the four social insurances paid by employees.
How income tax is calculated
Tax base = gross pay - earned income deduction - personal deductions - social insurance premiums
- Gross pay excludes the tax-free meal allowance of up to 200,000 won a month (2.4 million won a year) if your employer pays it.
- Earned income deduction: 70% of pay up to 5 million won; 3.5 million won + 40% of the part up to 15 million won; 7.5 million + 15% up to 45 million; 12 million + 5% up to 100 million; 14.75 million + 2% above, capped at 20 million won.
- Personal deduction: 1.5 million won for you and for each dependant. The national pension, health, care and employment insurance premiums you pay are deducted in full.
The progressive rates are 6% up to 14 million won, 15% up to 50 million, 24% up to 88 million, 35% up to 150 million, 38% up to 300 million, 40% up to 500 million, 42% up to 1 billion and 45% above. Two credits are then subtracted from the calculated tax: the earned income tax credit (55% of tax up to 1.3 million won, 30% above that, capped at 740,000 won for pay up to 33 million, 660,000 won to 70 million, 500,000 won to 120 million and 200,000 won above) and the child tax credit (250,000 won for one child aged 8 to 20, 550,000 won for two, plus 400,000 won for each further child). This calculator also applies the 130,000 won standard credit. Local income tax is 10% of the final income tax.
Social insurance rates for 2026 (employee share)
- National pension: 4.75% (the total rate is 9.5% since January 2026, split with the employer) of standard monthly income between 410,000 and 6,590,000 won (limits in force from July 2026).
- Health insurance: 3.595% of monthly pay (7.19% in total, split with the employer).
- Long-term care insurance: 13.14% of the health insurance premium, split with the employer, so the employee share is about 0.47% of pay.
- Employment insurance: 0.9% of pay for the unemployment benefit; industrial accident insurance is paid entirely by the employer.
Worked example
Annual salary 50,000,000 won with the 200,000 won meal allowance and no dependants. Taxable pay is 47,600,000 won and the earned income deduction 12,130,000 won. The four insurances come to 4,624,908 won (pension 2,260,560, health 1,711,200, care 224,760 and employment 428,388). After the 1,500,000 won personal deduction the tax base is 29,345,092 won and the calculated tax 3,141,763 won. The earned income credit is capped at 660,000 won and the standard credit is 130,000 won, so income tax is 2,351,763 won and local income tax 235,170 won. Net pay is 42,788,159 won a year, or about 3,565,700 won a month (85.6%).
What this calculator leaves out
Bonuses are not modelled separately: enter the total yearly pay and the calculator spreads it over twelve months. It ignores deductions you can claim at year-end (card use, housing savings, pension accounts, medical, education and donations), the extra deductions for elderly or disabled dependants, and the health insurance minimum and maximum monthly premium. Employer-only contributions such as industrial accident insurance are not shown.