📌 Simplified tax table lookup
• Employers, as withholding agents, deduct employment income tax in advance each month based on the simplified tax table and pay it to the government.
• Like Naver's salary calculator, entering annual salary first shows gross monthly pay by dividing by 12 when severance is separate or by 13 when severance is included, then looks up tax from taxable monthly pay after subtracting non-taxable amounts.
• Tax is determined by taxable monthly pay, excluding non-taxable income, and the number of deductible family members including yourself.
• If you have children aged 8-20, an additional credit is subtracted from the tax amount based on the number of children: 12,500 KRW for 1 child, 29,160 KRW for 2 children, and 25,000 KRW for each additional child from the third onward. If the result is negative, tax is 0 KRW.
• Local income tax is charged at 10% of income tax.
💡 Withholding rate selection Employees can choose 80%, 100%, or 120% of the simplified tax amount. Withholding less may lead to an additional payment at year-end settlement, while withholding more may increase the chance of a refund. The default is 100%.
📋 Income Tax Withholding Calculator
Enter your annual salary to convert it into gross monthly pay and taxable monthly pay, then calculate monthly income tax and local income tax from the National Tax Service simplified tax table. You can also enter taxable monthly pay directly.
| Withholding rate | Income tax | Local income tax | Total |
|---|---|---|---|
| 80% | — | — | — |
| 100% (Default) | — | — | — |
| 120% | — | — | — |
※ Calculations use the National Tax Service simplified tax table for employment income (Income Tax Act Enforcement Decree Appendix 2, revised Feb. 29, 2024, current version) and match Hometax lookup values. Annual salary mode converts gross annual salary into monthly pay, then subtracts the monthly non-taxable amount to determine taxable monthly pay.
What is income tax withholding?
How is the simplified tax table created?
The simplified tax table for employment income is a pre-calculated table from the National Tax Service. It reflects employment income deductions, basic deductions, portions of special income deductions and special tax credits, pension insurance deductions, the earned income tax credit, and the basic tax rates under the Income Tax Act. Employers can quickly find the monthly income tax to withhold from the monthly pay bracket and the number of deductible family members. This calculator uses the current simplified tax table revised on Feb. 29, 2024.
How do I count deductible family members?
Deductible family members are people eligible for the basic deduction, and both the taxpayer and spouse count as one person each. For example, if the household includes you, your spouse, and two children aged 8 or older, the deductible family count is 4. More deductible family members reduce the tax amount in the simplified table. The child tax credit is separate and further reduces tax based on the number of children aged 8-20.
What if monthly pay exceeds 10 million KRW?
The simplified tax table provides bracket amounts up to monthly pay of 10 million KRW, and higher pay is calculated by formula. For example, for monthly pay over 10 million KRW and up to 14 million KRW, the formula is "tax at 10 million KRW + (amount over 10 million KRW × 98% × 35%) + 25,000 KRW." This calculator also applies the official high-income formulas, so it can calculate tax accurately even when monthly pay is very high.
When should I choose 80%, 100%, or 120%?
Employees can choose to withhold 80%, 100%, or 120% of the simplified tax amount through the income and tax deduction report or a withholding tax adjustment request. Choose 80% if you want more monthly cash flow, or 120% if you want a larger possible refund at year-end settlement. The total annual tax liability is ultimately settled through year-end settlement regardless of the selected monthly rate. If no rate is selected, 100% applies.