Gift Tax Calculator
Tax on gifted assets.
Statutory formulaBased on 2026 rulesSources: Inheritance & Gift Tax Act · National Tax Service
The marriage/birth deduction applies only to gifts received from a lineal ascendant (parent, grandparent). It is not available for the selected relationship.
Tax payable
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Simplified estimate; 10-year cumulative gifts and special cases are not reflected.
What is gift tax?
Gift tax is paid by the recipient of assets given without compensation. The 10-year cumulative deduction limit depends on the relationship to the donor, and progressive rates of 10–50% apply to the remaining tax base.
Deduction by relationship
- Spouse 600M · Lineal descendant (adult) 50M · (minor) 20M · Ascendant from descendant 50M · Other relatives 10M KRW, cumulative over 10 years.
Rates and filing credit
What is the gift tax procedure?
Gift tax follows this sequence: ① a gift (asset transfer) occurs → ② it must be filed with the tax office within 3 months from the end of the month the gift occurred → ③ filing subtracts the relationship-based gift deduction (cumulative over 10 years) from the gift value to get the tax base → ④ progressive rates apply, and filing within the deadline earns a 3% filing credit off the calculated tax.
For example, a 220M KRW gift to another relative (10M deduction), filed within the deadline: the tax base is 220M − 10M = 210M. Calculated tax: formula gives 210M × 20% − 10M deduction = 32M; bracket-by-bracket gives 100M×10%=10M plus the remaining 110M×20%=22M, total 32M — matching. Subtracting the 3% filing credit (960,000) gives a final payable tax of 31.04M KRW.
A burdened gift (budambu jeungyeo) is a gift where the recipient also assumes an attached debt, such as a jeonse deposit or mortgage. The portion equal to the debt is treated as a paid transfer subject to capital gains tax rather than gift tax, while only the debt-free portion is taxed as a gift. Since this splits across two tax types and gets complex, consult a tax professional before proceeding.
Gift tax is filed with the tax office covering the recipient's address, and e-filing via Hometax is also available. Filing may require supporting documents such as the gift agreement and family relationship certificate, so it helps to prepare these in advance.
Gift tax rates and the ten-year aggregation rule
The deductions are above. The rates below apply to what remains — but the ten-year aggregation rule is easy to miss, and ignoring it throws the calculation badly off.
| Tax base | Rate | Progressive deduction |
|---|---|---|
| up to 100,000,000 KRW | 10% | — |
| 100,000,000 KRW – 500,000,000 KRW | 20% | 10,000,000 KRW |
| 500,000,000 KRW – 1,000,000,000 KRW | 30% | 60,000,000 KRW |
| 1,000,000,000 KRW – 3,000,000,000 KRW | 40% | 160,000,000 KRW |
| over 3,000,000,000 KRW | 50% | 460,000,000 KRW |
Gift and inheritance tax share one rate table; only the deductions and deadlines differ.
Gifts within ten years are added together
Gifts from the same donor are aggregated over ten years, and the deduction applies across that whole period rather than resetting with each gift.
Aggregation also drives the rate: the bracket is set on the combined total, and gift tax already paid is then credited. Splitting gifts therefore does not avoid the progressive rates.
Parents are treated as a single lineal ascendant, so gifts from a father and a mother combine. Grandparents are also lineal ascendants, but a generation-skipping gift carries a surcharge.
Deadline and the filing credit
Filing is due within three months from the end of the month in which the gift was received. Filing voluntarily within that window earns a 3% credit against the assessed tax; failing to file forfeits it and adds a non-filing penalty.
Filing is worth doing even when no tax is due: a return records the source of funds, which helps if the origin of a later property purchase or deposit is questioned.
Larger amounts can be paid in instalments, and bigger liabilities can be spread over several years against security.
What counts as a gift
- Property bought with a parent's money but registered to a child — the classic finding in a source-of-funds audit.
- Interest-free or low-interest family loans: the shortfall against a reasonable rate is treated as a gift unless a loan agreement and actual interest payments exist.
- Assets transferred below market value between related parties, to the extent of the difference.
- Insurance proceeds where the premium payer and the beneficiary differ.
- Debts forgiven or paid by someone else.
Legal basis
- Rates — Inheritance and Gift Tax Act arts. 56 and 26
- Gift deductions — art. 53
- Ten-year aggregation — art. 47(2)
- Deadline and filing credit — arts. 68 and 69
- Deemed gifts — arts. 35 and 45