2026 scope: Estimates Korean financial income withheld at ordinary rates. Above KRW 20,000,000, Article 62 requires the higher statutory amount before the capped dividend credit; there is no election. The 2026 gross-up is 10%; 11% starts January 1, 2027. Foreign or unwithheld income, special-regime dividends, real-estate dealers with gains from selling housing or real estate prescribed by Presidential Decree to which Article 64 applies, other credits, prepayments and penalties are excluded. Local tax assumes Article 92 standard rates without ordinance adjustment. This is not final or additional tax payable.
๐ Comprehensive Financial Income Tax Calculator
For 2026 financial income, Income Tax Act Article 62 requires the higher of the two statutory calculated amounts. This calculator provides a simplified burden estimate using the 10% dividend gross-up; it does not calculate the final tax payable.
๐ฆ Interest Income Tax Calculator ๐น Dividend Income Tax Calculator
Simplified national income tax estimate
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Local income tax estimate (standard rates assumed): โ ยท
Simplified national and local tax estimate: โ
For domestic financial income withheld at the ordinary rates, a total of KRW 20,000,000 or less is generally outside this Article 62 comparison. The displayed national amount is only the sum of estimated tax on other comprehensive income and financial-income withholding; it is not one statutory calculated tax or additional tax payable. Foreign or otherwise unwithheld income may still require filing.
| Method | Calculated tax (national tax) | Notes |
|---|---|---|
| โ Comprehensive taxation method | โ | KRW 20,000,000 ร 14% + progressive tax on (financial income over KRW 20,000,000 + gross-up amount + other comprehensive income โ deductions) |
| โก Separate taxation (comparison) method | โ | Total financial income ร 14% + progressive tax on (other comprehensive income โ deductions) |
Total financial income
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Financial income over KRW 20,000,000
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Dividend gross-up amount (10%)
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Dividend tax credit
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Guide to Comprehensive Taxation of Financial Income
Why Is Comprehensive Taxation of Financial Income a "Comparative" System?
Article 62 of Koreaโs Income Tax Act requires a comparison between the amount calculated under the comprehensive-taxation method and a comparison amount calculated by applying the withholding rate to financial income. If financial income exceeds KRW 20 million, this calculator shows the higher of those two amounts as an estimate of calculated tax. At KRW 20 million or less, it shows the sum of calculated tax on other comprehensive income and withholding tax on financial income. This is not the actual tax payable.
How the Gross-Up and Dividend Tax Credit Work Together
Eligible dividends paid in 2026 use a 10% gross-up on the excess, subject to the credit cap. The 11% amendment starts January 1, 2027.
Determining Whether Income Exceeds KRW 20,000,000 and the Order Applied
The KRW 20,000,000 threshold is determined by combining interest and dividend income. Under tax rules, the threshold is filled in this order: interest income โ dividends not subject to gross-up โ dividends subject to gross-up. Therefore, if interest income alone reaches KRW 20,000,000, all dividend income is treated as excess subject to comprehensive taxation. Dividends eligible for gross-up are counted last and are subject to the 10% addition to the extent they exceed the threshold.
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Frequently asked questions
Does my tax always increase if my financial income exceeds KRW 20,000,000?
No. Under the comparative taxation system, the higher of the comprehensive tax amount and the separate taxation amount equivalent to withholding applies. If you have little other comprehensive income or substantial deductions, your actual burden may remain close to the 14% withholding rate. However, high-income taxpayers with substantial employment or business income are more likely to move into a higher progressive tax bracket and face a larger tax burden.
How can I tell whether my dividends are subject to gross-up?
The dividend income withholding receipt or payment statement issued by your brokerage or bank indicates whether the dividend is subject to gross-up. Profit dividends from domestic corporations, whether listed or unlisted, generally qualify. Dividends from corporations receiving corporate tax exemptions or reductions, certain fund distributions, and dividends from foreign corporations may be excluded.
Why is income up to KRW 20,000,000 calculated at 14%?
Financial income up to KRW 20,000,000 has already been taxed at 14% through withholding, excluding local income tax. The same 14% withholding rate therefore applies to this portion when calculating comprehensive tax, while only the amount exceeding KRW 20,000,000 is combined with other comprehensive income and taxed at progressive rates.
Can this calculator produce a different result from the National Tax Service Hometax simulator?
This simplified 2026 estimate excludes foreign or unwithheld income, special-regime dividends, Article 64 real-estate dealers, other credits, prepayments, penalties and local-ordinance adjustments. Confirm the filing in Hometax or with a tax professional.