β» Based on 2025 Β· Automatically calculates Korean comprehensive income tax on combined income (interest, dividend, business, employment, pension, and other income), applying the progressive tax rate.
Comprehensive income tax rates (2025): 6% up to 14M KRW, 15% to 50M, 24% to 88M, 35% to 150M, 38% to 300M, 40% to 500M, 42% to 1B, 45% above 1B. Local income tax is 10% of the determined tax. Filing period: May 1β31 each year.
β οΈ This calculator is based on the tax law of the Republic of Korea
Korean comprehensive income tax is levied on the total of all income an individual earns during a calendar year. It combines six categories of income (interest, dividends, business, employment, pension, and other income), subtracts applicable income deductions, and then applies a progressive tax rate (6%β45%) to the remainder. For example, a freelancer who earns 50 million KRW in business income during the year pays comprehensive income tax on the taxable base after deductions (personal deduction of 1.5 million KRW plus other deductions). Employees with only employment income have this handled by their employer through year-end settlement, but freelancers, business owners, and side-income earners must file their own comprehensive income tax return every May.
Comprehensive income tax uses a progressive rate structure, so higher income is taxed at a higher rate. As of 2025, the lowest bracket is 6% (up to 14 million KRW) and the highest is 45% (above 1 billion KRW). For a taxable base of 50 million KRW, the first 14 million KRW is taxed at 6% (840,000 KRW) and the remainder up to 50 million KRW at 15% (5.4 million KRW), producing a calculated tax of 6.24 million KRW. As a shortcut, you can apply the progressive deduction: 50,000,000 Γ 15% β 1,260,000 (progressive deduction) = 6,240,000 KRW. Adding the local income tax (10% of the calculated tax) brings the total tax payable to 6,864,000 KRW.
To reduce comprehensive income tax, make full use of income deductions and tax credits. The personal deduction is 1.5 million KRW per dependent (including yourself), with an additional 1 million KRW for dependents aged 70 or older and 2 million KRW for those with disabilities. Contributions to a pension account can earn a tax credit of up to 7 million KRW (13.2β16.5%), and charitable donations qualify for a 15β30% tax credit. Business owners should keep accurate records of necessary expenses to claim deductions, and filing electronically through Hometax earns an additional 20,000 KRW tax credit. Employees at qualifying small and medium-sized enterprises may also be eligible for up to a 90% income tax reduction, so it is worth checking whether you qualify.