What comes out of a Korean paycheck
Employees in Korea pay four social insurances plus income tax. In 2026 the employee shares are:
| Item | Employee share | Note |
|---|---|---|
| National Pension | 4.75% | On monthly income up to ₩6,590,000 (from July 2026) |
| Health insurance | 3.595% | Half of 7.19% |
| Long-term care | 13.14% of the health premium | Paid together with health insurance |
| Employment insurance | 0.9% | Some visa types are exempt or optional |
| Income tax | 6–45% progressive | Plus 10% local income tax |
How income tax is estimated
The calculator follows the year-end settlement: annual salary minus the earned income deduction, ₩1.5 million per person you support, and the insurance premiums you paid, then the progressive rates (6% up to ₩14 million of taxable income, rising to 45%). It subtracts the earned income tax credit and the ₩130,000 standard tax credit, and adds 10% local income tax.
The 19% flat tax for foreign workers
Foreigners who start working in Korea on or before December 31, 2026 can choose to pay a flat 19% on their wage income for up to 20 years instead of the normal rates. No deductions or credits apply under the flat rate, so it mainly helps higher earners. Compare both modes above; you apply through your employer.
National Pension refunds when you leave
Many foreign employees pay National Pension. Depending on your nationality and the social security agreement with your country, you may be able to claim a lump-sum refund when you leave Korea, or you may be exempt. Check with the National Pension Service before you assume either.
Frequently asked questions
How much tax do foreigners pay in Korea?
The same progressive rates as Koreans (6–45% plus 10% local tax), or optionally a flat 19% on wage income for up to 20 years if you started working in Korea by December 31, 2026.
What is taken out of my salary in Korea?
National Pension 4.75%, health insurance 3.595%, long-term care (13.14% of the health premium), employment insurance 0.9%, income tax and local income tax.
Is the 19% flat tax better?
Usually only for higher salaries. It removes all deductions and credits, so at average salaries the standard rates are often lower. Use the toggle to compare.
Sources: Income Tax Act Arts. 47, 50, 55, 59 · Restriction of Special Taxation Act Art. 18-2 (19% flat tax) · National Pension Act Art. 88 · National Health Insurance Act Enforcement Decree Art. 44. Last checked: 2026-10-09