South Korea Tax Rates
South Korea operates a progressive income tax system with rates ranging from 6% to 45%, administered by the National Tax Service (NTS). The standard corporate tax rate is 24% with lower rates for smaller companies. South Korea levies a 10% VAT and has comprehensive capital gains taxation on real estate and securities. The tax system includes a local income tax surcharge of 10% on national income tax, effectively increasing all rates.
Top Income Tax Rate
49.5%
Corporate Tax Rate
25%
VAT / Sales Tax
10%
Capital Gains Tax
22%
Detailed Tax Information
Income Tax Brackets
South Korea imposes a national progressive income tax with eight brackets ranging from 6% to 45%. An additional local income tax of 10% of the national income tax liability applies, bringing the effective top marginal rate to 49.5%. Residents are taxed on worldwide income while non-residents are taxed only on Korean-sourced income. Employment income benefits from various deductions including an earned income deduction, basic personal exemption of KRW 1.5 million per qualifying person, and additional deductions for insurance premiums, medical expenses, education expenses, and charitable donations.
| Income Range | Tax Rate |
|---|---|
| ₩0 – ₩14.0M | 6% |
| ₩14.0M – ₩50.0M | 15% |
| ₩50.0M – ₩88.0M | 24% |
| ₩88.0M – ₩150.0M | 35% |
| ₩150.0M – ₩300.0M | 38% |
| ₩300.0M – ₩500.0M | 40% |
| ₩500.0M – ₩1000.0M | 42% |
| ₩1000.0M+ | 45% |
Corporate Tax
South Korea's corporate income tax has a progressive structure effective January 1, 2026: 10% on income up to KRW 200 million; 20% on KRW 200 million to 20 billion; 22% on KRW 20 billion to 300 billion; and 25% on income exceeding KRW 300 billion. A 10% local income tax surcharge applies to the national corporate tax, bringing the effective top rate to 27.5%. Small and medium-sized enterprises (SMEs) benefit from various tax incentives, including reduced rates and R&D tax credits.
Standard Rate
25%
Small Business Rate
10%
Capital Gains Tax
Capital gains on real estate in South Korea are taxed at progressive rates of 6-45% (matching income tax brackets) plus local income tax for properties held more than 2 years, with significantly higher rates for short-term holdings: 70% for properties held less than 1 year and 60% for 1-2 years. Additional tax of 20-30% applies on gains from selling homes in designated speculative overheated areas for multi-home owners. Stock capital gains for major shareholders (holding 1%+ or KRW 1 billion+ in a listed company) are taxed at 22-27.5% including local tax.
Short-Term Rate
45%
Long-Term Rate
22%
Rate
22%
VAT / Sales Tax
South Korea's VAT is levied at a flat rate of 10% on most goods and services. Certain essential goods and services are exempt from VAT, including unprocessed foodstuffs, medical and healthcare services, educational services, financial and insurance services, and public housing. There are no reduced VAT rates in Korea; supplies are either taxed at 10%, zero-rated (primarily exports), or exempt.
Standard Rate
10%
Cryptocurrency Tax
South Korea taxes cryptocurrency gains as other income at a 20% national rate plus 2% local income tax (total 22%) on gains exceeding KRW 50 million per year. The crypto tax was enacted in December 2024 and took effect in 2026, with the threshold raised from the originally proposed KRW 2.5 million to KRW 50 million.
Tax Treaties
South Korea has a comprehensive network of over 93 tax treaties designed to prevent double taxation and combat tax evasion. These treaties generally provide reduced withholding rates on dividends, interest, and royalties. South Korea is a signatory to the OECD Multilateral Convention (MLI) and actively participates in international tax cooperation initiatives including BEPS implementation and automatic exchange of financial information.
Treaty Network
93
Double taxation agreements
Major treaty partners:
Key Details
Relocate to South Korea
See how much you could save by moving here from your current country.
+$9K
Tax in United States
$24K
24.4% effective
Tax in South Korea
$15K
15.4% effective
You Save
36.8%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
