Tax & Payroll

Inheritance Tax Calculator

Tax on an inherited estate.

Statutory formulaBased on 2026 rulesSources: Inheritance & Gift Tax Act · National Tax Service

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Simplified estimate; only the minimum 500M KRW spouse deduction is applied.

What is inheritance tax?

Inheritance tax is levied when assets pass to heirs upon death. The taxable estate (total assets minus debts) is reduced by deductions such as the lump-sum and spouse deductions, then progressive rates apply to the remaining tax base.

Deduction components
  • Lump-sum deduction 500M · Basic deduction 200M · Child deduction 50M each · Spouse deduction minimum 500M (up to 3B, limited to actual share).
Rates and caveats
Estimate only. Only the minimum 500M spouse deduction is applied (not the full statutory-share calculation), and financial-asset or disaster-loss deductions are not included. Verify with Hometax or a tax professional.
What order is inheritance tax calculated in?

Inheritance tax isn't a single multiplication — it follows several steps: ① total estate value → ② subtract debts to get the taxable estate → ③ subtract deductions (lump-sum or basic+personal, plus spouse deduction) to get the tax base → ④ apply progressive rates to get the calculated tax. The calculator's "Taxable estate → Total deductions → Tax base" breakdown shows exactly this sequence.

For example, with a 2B KRW estate, no debt, 2 children, and a spouse inheriting: the taxable estate is 2B, deductions total 1B (500M lump-sum + 500M minimum spouse deduction), giving a 1B tax base. Formula: 1B × 30% − 60M deduction = 240M KRW. Cross-checking bracket by bracket: 100M×10%=10M, plus (100M–500M) 400M×20%=80M, plus (500M–1B) 500M×30%=150M, total 10M+80M+150M=240M — the two methods match exactly.

Inheritance tax must be filed and paid within the statutory deadline counted from the month the death occurred, or penalties may apply. This is a simplified reference estimate — verify the exact deadline and tax amount with Hometax or a tax professional.

Between the lump-sum deduction (500M) and the basic+personal deduction total, the larger amount is automatically used. For example, with 7 children: basic deduction 200M + child deduction 350M (50M × 7) = 550M, which exceeds the 500M lump-sum, so 550M applies instead. With fewer children, the 500M lump-sum is usually more favorable.

Inheritance tax rates and deadlines

The deductions are above; the rates below apply to what remains. The table is the same as for gift tax, but inheritance allows a longer deadline and pulls earlier gifts back into the estate.

Inheritance and gift tax rates
Tax baseRateProgressive deduction
up to 100,000,000 KRW10%—
100,000,000 KRW – 500,000,000 KRW20%10,000,000 KRW
500,000,000 KRW – 1,000,000,000 KRW30%60,000,000 KRW
1,000,000,000 KRW – 3,000,000,000 KRW40%160,000,000 KRW
over 3,000,000,000 KRW50%460,000,000 KRW

Earlier gifts return to the estate

Gifts made before death are added back: ten years for gifts to heirs, five years for gifts to others such as children-in-law or grandchildren.

They are added at their value when gifted, not at death, so gifting assets expected to appreciate is advantageous. Gift tax already paid is credited against the inheritance tax.

Gifts made close to death therefore save little, while planned transfers more than ten years ahead fall outside the rule entirely.

Who inherits, and in what share

Without a will, the statutory order applies: descendants first, then ascendants, with the spouse inheriting alongside either and alone if neither exists. Siblings come third.

Heirs of the same rank share equally, except that the spouse takes 1.5 times another heir's share — so two children and a spouse divide in a 1 : 1 : 1.5 ratio.

A will cannot exclude other heirs entirely: descendants and the spouse may claim half of their statutory share, and ascendants one third. Siblings no longer have such a claim.

Deadline and payment options

Filing is due within six months from the end of the month in which the succession opened, or nine months if all heirs live abroad. Filing on time earns the same 3% credit.

Estates weighted toward property can leave heirs short of cash: payment may be spread over several years against security, and payment in kind with inherited property is allowed in limited cases.

Where debts exceed assets, heirs may renounce the inheritance or accept it conditionally, but must apply to the family court within three months of learning of the succession.

Legal basis

  • Rates — Inheritance and Gift Tax Act art. 26
  • Adding back earlier gifts — art. 13
  • Order of succession and statutory shares — Civil Act arts. 1000 and 1009
  • Reserved portion — Civil Act art. 1112
  • Deadline — art. 67; instalments and payment in kind — arts. 71 and 73
  • Renunciation — Civil Act art. 1019
What is the lump-sum deduction?
You can choose the larger of (basic deduction 200M + other personal deductions) or the 500M lump-sum deduction. Simple heir structures usually favor the lump-sum option.
How much is the spouse deduction?
A spouse who inherits gets a deduction from a minimum of 500M up to the actual inherited amount (statutory share limit, max 3B KRW).
What are the inheritance tax rates?
Progressive rates of 10–50% apply based on the tax base, the same bracket table as gift tax.
What order is inheritance tax calculated in?
Debts are subtracted from the total estate to get the taxable estate, then deductions (lump-sum or basic+personal, plus spouse deduction) are subtracted to get the tax base, which is taxed at progressive rates. For example, a 2B taxable estate minus 1B in deductions gives a 1B tax base; at 30% with a 60M deduction, the calculated tax is 240M KRW.
When must inheritance tax be filed?
It must be filed and paid within the statutory deadline, or penalties may apply. Check Hometax for the exact deadline and required documents.