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19% flat tax vs progressive tax — which is lower?
Foreign employees in Korea can choose a 19% single rate instead of the normal 6–45% rates. Enter your yearly pay to see both side by side.
How it is calculated
- Restriction of Special Taxation Act Art. 18-2 — you may choose 19% of all wage income incl. non-taxable pay (only the benefit of rent-free company housing is left out — Art. 18-2③, Enforcement Decree Art. 16-2⑤, Income Tax Act Decree Art. 17-4 No. 1), with no deductions or credits; for those who first worked in Korea by 2026-12-31, for 20 years. Daily workers and people working for a company related to them are not eligible (Art. 18-2②, Decree Art. 16-2②). You must apply for it
- Spouse and dependents count only for tax residents (an address in Korea, or a residence in Korea for 183+ days, Income Tax Act Art. 1-2) and only if each has KRW 1M or less income (or wages of KRW 5M or less); children 20 or under, parents 60 or over, no age limit for the disabled (Art. 50). Non-residents get the KRW 1.5M deduction for themselves only (Art. 122①)
- Income Tax Act Art. 47 (wage income deduction), 50 (basic deduction KRW 1.5M per person), 55 (rates 6–45%), 59 (wage income tax credit), 59-4⑨1 (standard credit KRW 130,000)
- Local income tax: 10% of income tax for progressive rates (Local Tax Act Art. 92); for the 19% rate it is 1.9% of wage income (one tenth of 19%), with no local-tax credits or reductions (Restriction of Special Local Taxation Act Art. 106-2)
- Simplified: insurance, card spending, medical and other deductions are not included, so the progressive figure can be higher than your real tax
Worked example — KRW 60M pay (2.4M non-taxable), 1 person → progressive: deduction 12.63M, base 43.47M, tax 5,260,500 − credit 660,000 − 130,000 = 4,470,500 · flat: 60M × 19% = 11,400,000
Rules as of 2026-10-05. A calculation tool, not legal or tax advice. What you type stays in this browser and is not sent anywhere.