Pension Savings & IRP Tax Credit
Tax credit refund from pension savings and IRP contributions, and how much room is left.
Approximate estimateBased on 2026 rulesSources: Income Tax Act Art. 59-3 · National Tax Service
Enter your tax after other credits if you know it. Leave blank for no cap.
Estimated refund effect (income tax + local tax)
0KRW
What is the pension savings and IRP tax credit?
A share of what you pay into pension savings and IRP (retirement pension accounts) is deducted directly from that year's income tax. Unlike a deduction, your tax falls by the contribution times the credit rate regardless of your tax bracket. The 15% (or 12%) income tax credit plus 10% local income tax works out to 16.5% (or 13.2%).
- Rate: 15% up to KRW 55 million of salary (KRW 45 million of total income if you have other income), 12% above
- Limit: KRW 6 million for pension savings; KRW 9 million combined with IRP per year
- ISA transfer: 10% of ISA maturity money moved into a pension account (up to KRW 3 million) raises the limit
Refund by contribution
| Contribution | 16.5% rate | 13.2% rate |
|---|---|---|
| KRW 1M | KRW 165,000 | KRW 132,000 |
| KRW 3M | KRW 495,000 | KRW 396,000 |
| KRW 6M | KRW 990,000 | KRW 792,000 |
| KRW 9M | KRW 1,485,000 | KRW 1,188,000 |
16.5% applies to salary up to KRW 55 million (KRW 45 million of total income with other income), 13.2% above that. Pension savings alone is credited up to KRW 6 million, so the KRW 9M row assumes IRP fills the rest.
Before you contribute
- Deposits made by December 31 count for that year. Allow a few days, as year-end transfers bunch up.
- A small final tax means you cannot use the full credit, because it only refunds tax actually owed.
- Early withdrawal can add a 16.5% other-income tax on credited contributions and earnings. Plan on receiving it as a pension from age 55.
Source: Income Tax Act Art. 59-3. Limits and rates can change with tax law, so also check National Tax Service guidance, and consult a tax professional for your own situation.