Earned Income Tax Calculator
Calculate annual earned income tax and local income tax based on gross salary.
Salary & Deductions
Pre-tax annual salary minus tax-free pay (meal allowance, etc.)
Total of national pension, health insurance, credit card deductions, etc.
Child, pension account, insurance credits, etc. (earned income tax credit applied automatically)
Annual Earned Income Tax (Income + Local Tax)
₩2,357,850
* Reference calculation only. Actual year-end settlement tax varies by income/tax credit items and is reconciled with tax already withheld for a refund or additional payment.
The wage income tax calculator subtracts the earned income deduction and personal deductions from your gross annual salary to get the tax base, then applies the basic rate table and the earned income tax credit to compute your annual wage income tax and local income tax.
How the calculation flows
Gross salary − earned income deduction = earned income amount. Subtracting personal and other income deductions from that gives the tax base. Applying the basic rate to the tax base gives the calculated tax, from which the earned income tax credit is subtracted to get the final tax due, plus 10% local income tax.
Frequently Asked Questions
Is this different from what's withheld each month?
Monthly withholding uses the simplified withholding table, and year-end settlement reconciles it against your actual deductions. This calculator gives an annual approximation.
How is the earned income deduction calculated?
A deduction rate set by salary bracket applies, with the rate decreasing progressively as salary rises.
How much is the personal deduction per person?
1.5 million won is deducted from income for each qualifying dependent, including yourself, subject to income and age requirements for dependents.
Are gross salary and annual salary the same thing?
Gross salary is your annual salary minus tax-exempt items (like meal allowances) — the amount actually subject to tax.
What's the limit on the earned income tax credit?
Both the credit rate and the cap vary by the calculated tax bracket, designed so the cap decreases as gross salary rises.
* Based on 2026 figures. Actual tax depends on individual deductions and year-end settlement results.
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