Comprehensive Income Tax
Tax by income bracket.
Statutory formulaBased on 2026 rulesSources: Income Tax Act · National Tax Service · Hometax
Comprehensive income minus deductions.
Total tax payable
6,864,000원
Effective rate approx. 8.23%.
What is comprehensive income tax?
Korea's comprehensive income tax applies progressive rates to the tax base (total income minus deductions) combining interest, dividend, business, earned, pension and other income.
2026 tax bracket table
Rates range from 6% up to 45% depending on the tax base, each bracket applying a progressive deduction.
May filing schedule & who must file
Comprehensive income tax is filed each year from May 1–31 (through June for those subject to bookkeeping certification) for the prior year's income via Hometax. Filers include freelancers and sole proprietors, salaried workers with side income, and those with rental (housing) income.
Worked examples
Tax base 30,000,000 KRW (freelancer example) → calculated tax 3,240,000 + local tax 324,000 = 3,564,000 KRW total. Tax base 80,000,000 KRW (combined rental income example) → calculated tax 13,440,000 + local tax 1,344,000 = 14,784,000 KRW total.
Calculation & local tax
Calculated tax = tax base × rate − progressive deduction. Local income tax adds 10% of the calculated tax.
Who files income tax, when, and the penalties
Once the tax is calculated, the next questions are whether you must file at all and by when. Mistakes here undo an otherwise correct calculation.
Filing and payment
Income tax is filed and paid between 1 and 31 May for the previous year's income. Businesses submitting a compliance confirmation report get until 30 June. Filing electronically through Hometax qualifies for a filing credit.
If the amount due exceeds 10 million KRW, part of it can be deferred by two months; above 20 million KRW, up to half may be deferred.
Who must file
Employees with only salary income who completed year-end settlement generally have nothing to file. Filing is required when other income is mixed in: business income, salary from two or more employers without a combined settlement, or interest and dividends exceeding 20 million KRW a year.
Private pension income above 15 million KRW, or other income above 3 million KRW net of expenses, may be either separately or globally taxed — whichever is more favourable. Residential rental income splits at 20 million KRW.
Missing the deadline
Failing to file draws a penalty of 20% of the assessed tax, or 40% where fraud is involved. Under-reporting draws 10% (40% if fraudulent).
A late-payment penalty accrues separately at 0.022% per day. Voluntarily filing late or amending before the tax office acts can reduce the filing penalties by up to 50%.
What this calculator leaves out
- Local income tax is extra. An additional 10% of the calculated income tax is charged as local income tax.
- Tax credits vary by person. Child credits, pension account credits and donation credits depend on individual circumstances.
- Separately-taxed income is excluded. Financial income of 20 million KRW or less per year is settled by withholding and not aggregated.
- Business income adjustments are excluded. Loss carryforwards and depreciation can change the tax base substantially.
Legal basis
- Rates and brackets — Income Tax Act art. 55
- Local income tax 10% — Local Tax Act art. 92
- Withholding on interest and dividends — Income Tax Act art. 129