🔎 Introduction
If you are working in Korea as a foreigner, one of the most confusing parts of your salary is income tax.
Many people notice that:
- Their net salary changes even when the gross salary stays the same
- Different online calculators show different results
- The amount withheld by the employer doesn’t match expectations
This guide explains how income tax is actually calculated in Korea, based on official rules from the National Tax Service (NTS), and why it is separate from the 4 major social insurances.
To better understand your real income, try converting your salary using our Exchange Rate Calculator.
🇰🇷 Income Tax vs Social Insurance in Korea
First, it’s important to understand that income tax is NOT part of the 4 major insurances.
4 Major Social Insurances (Employee Portion)
These are fixed-rate deductions:
- National Pension
- Health Insurance
- Long-term Care Insurance
- Employment Insurance
👉 These are predictable and calculator-friendly.
You can estimate these deductions using our official calculator here:
👉 Korean Salary Calculator (2026)
https://gokoreaguide.com/korean-salary-calculator-2026/
💡 Why Income Tax Is Different
Income tax in Korea is calculated using withholding tax tables, not a simple percentage.
It depends on:
- Monthly gross salary
- Number of dependents
- Eligibility for tax exemptions
- Non-taxable income (meal allowance, etc.)
Because of this, income tax cannot be calculated accurately without personal data.
📊 What Is the NTS Withholding Tax Table?
Korean employers calculate income tax using official monthly tables published by the National Tax Service.
These tables:
- Are updated annually
- Show tax amounts based on salary + dependents
- Are used directly by payroll departments
This is why two employees with the same salary may receive different net pay.
❓ Why Online Calculators Often Exclude Income Tax
Most salary calculators exclude income tax because:
- Dependents differ per person
- Non-taxable allowances vary by employer
- Official tables are complex and conditional
Including income tax without this data would often be misleading, not helpful.
That’s why responsible calculators (including ours) clearly state:
Income tax is handled separately by employers using NTS tables.
🧮 How to Estimate Your Real Take-Home Pay
To get the most accurate estimate:
- Calculate 4 major insurance deductions first
- Ask your employer or HR how many dependents are applied
- Confirm if you receive non-taxable allowances
- Check the official NTS withholding table for your case
For step 1, you can use our calculator:
👉 Korean Salary Calculator (2026)
https://gokoreaguide.com/korean-salary-calculator-2026/
⚠️ Important Notes for Foreigners
- Income tax withheld monthly is not final tax
- Annual tax settlement (연말정산) may result in:
- Refunds
- Additional payments
- Some foreigners may qualify for flat tax options depending on visa and contract
Always confirm your situation with your employer or a tax professional.
🏛️ Official Sources & References
This guide is based on information published by official Korean government agencies:
- National Tax Service (NTS): https://www.nts.go.kr
- National Pension Service: https://www.nps.or.kr
- National Health Insurance Service: https://www.nhis.or.kr
Rates and regulations may change annually.
This article is for general information purposes only.