South Korea — Tax: Income Tax

Why this matters

Understanding income tax in South Korea can significantly impact the financial decisions and overall cost of living for relocating individuals and families.

Key facts

• Top statutory personal income tax rate (national plus sub-national): 49.5% (2025)
• The top rate applies from about 19.0 times the average wage (2025)

Steps

1. Determining Tax Residency — Tax residency in South Korea is determined by the number of days an individual spends in the country. Residents are considered to be individuals who have spent more than 183 days in South Korea within a 12-month period. Non-residents are taxed only on their South Korean-sourced income.
2. Gathering Required Documents — Taxpayers will need to gather various documents, including their tax returns from previous years, proof of income, and bank statements. Foreigners may also need to obtain a tax identification number (TIN) and provide proof of their foreign income.
3. Filing Tax Returns — Taxpayers are required to file their tax returns by May 24th each year. The tax return must be filed in Korean, and taxpayers may need to hire a tax professional to assist with the process.

Costs

• Tax Return Filing Fee: varies, around KRW 100,000 to 200,000 (approximately USD 80 to 160)
• Tax Professional Fees: varies, around KRW 500,000 to 1,000,000 (approximately USD 400 to 800)

Timelines

• Tax Filing Deadline: May 24th each year

Required documents

• Tax returns from previous years
• Proof of income
• Bank statements
• Tax identification number (TIN)

Common mistakes

• Failing to obtain a tax identification number (TIN)
• Not filing tax returns on time
• Underreporting or overreporting income

What this figure does not cover

This is the top marginal rate only. The lower brackets, allowances, social security contributions, special regimes for new residents or expatriates, and how tax residency is decided are not covered here. Check the national tax authority for your situation.