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Korean Income Tax Bracket History (2017–2026)

See how income tax brackets, rates and progressive deductions changed with each revision. For reference only — verify exact figures with National Tax Service Hometax or a licensed tax accountant.

Statutory formulaBased on 2026 rulesSources: Income Tax Act · National Tax Service

Why do tax brackets keep changing? — bracket creep

Bracket tables aren't revised every few years purely to raise revenue. The key is that Korea's Income Tax Act does not automatically index bracket thresholds to inflation. If wages rise only in line with inflation, real purchasing power stays flat, yet nominal income can still cross a bracket boundary into a higher rate — a phenomenon called "bracket creep". Unlike countries that index brackets to inflation automatically, Korea's National Assembly must pass a separate law to widen them. Four revisions between 2017 and 2026 were mostly adjustments to ease this effect.

How the 2023 revision affected take-home pay

The 2023 revision raised the 6% bracket ceiling from 12M → 14M KRW and the 15% bracket ceiling from 46M → 50M KRW (see the yearly tables above from 2023 onward). Someone with a tax base between 46M and 50M KRW previously fell into the 24% bracket, but after the revision stays in the 15% bracket, lowering calculated tax on that income. This reflects the bracket table itself — actual take-home differences vary by income and deductions, so compare exact figures with the comprehensive income tax calculator.

Does crossing a bracket tax all your income at the higher rate? — a progressive-structure check

It's a common misconception that crossing a bracket boundary taxes all income at the higher rate — Korea's income tax is progressive by excess, so only the amount above each threshold is taxed at that bracket's rate. For a tax base of 40M KRW under the current (2023-revision) table, two calculation methods match exactly.

① Formula: 40M × 15% − 1.26M deduction = 6M − 1.26M = 4.74M KRW
② Bracket-by-bracket: 14M × 6% = 0.84M, plus the remaining 26M (14M–40M) × 15% = 3.9M, total 0.84M + 3.9M = 4.74M KRW

The exact match shows the progressive deduction is just a shortcut that mimics applying lower rates to lower slices of income — it never inflates or reduces the actual tax owed.

Yearly detail pages

📖 Related guide — How to Read Korea’s Income Tax Brackets

FAQ

How many times has the income tax rate been revised?
Since 2017 there have been three revisions — in 2018, 2021 and 2023 — resulting in four tax-bracket systems to date. Check National Tax Service Hometax for the exact year each applies.
What does "applicable year" mean?
The applicable year is the year the income was actually earned; tax is calculated using the bracket table in effect for that year. For example, income earned in 2023 uses the 2023-revision bracket table.
How is the progressive deduction used?
Calculated tax = tax base × rate − progressive deduction. For the exact amount including local income tax, use the comprehensive income tax calculator or Hometax.
Does crossing a bracket tax all my income at the higher rate?
No. Korean income tax is progressive by excess, so only the amount above each threshold is taxed at that bracket's rate. The progressive deduction simply mimics applying lower rates to lower slices — it never inflates or reduces actual tax owed.
Why does the bracket table stay flat for years, then suddenly change?
Korea's Income Tax Act doesn't automatically index bracket thresholds to inflation, so nominal income rising with prices alone can push earners into a higher bracket — "bracket creep." The National Assembly periodically passes a separate law to widen brackets and offset this.
How much did the 2023 revision actually change take-home pay?
The lower brackets widened from 12M→14M KRW and 46M→50M KRW, so earners near the top of those brackets stayed in a lower rate bracket longer, reducing calculated tax. The exact difference varies by income level — compare directly with the comprehensive income tax calculator.

Related tools

Comprehensive Income Tax Tax by income bracket. Year-End Tax Settlement Estimated refund or extra payment. 2026 Tax & Insurance Rates Four major insurance rates and income tax brackets on one page.