Income Tax for Foreigners in Korea (2026)
South Korea uses a progressive income tax system. All employees, including foreigners on E-7, D-10, F-2, F-5, F-6, and other work-eligible visas, have income tax withheld from their monthly salary. The 2026 tax brackets are:
| Taxable Income (KRW) | Rate | Cumulative Tax |
|---|
| Up to ₩14M | 6% | ₩840,000 |
| ₩14M – ₩50M | 15% | ₩6,240,000 |
| ₩50M – ₩88M | 24% | ₩15,360,000 |
| ₩88M – ₩150M | 35% | ₩37,060,000 |
| ₩150M – ₩300M | 38% | ₩94,060,000 |
| ₩300M – ₩500M | 40% | ₩174,060,000 |
| ₩500M – ₩1B | 42% | ₩384,060,000 |
| Over ₩1B | 45% | |
On top of income tax, you pay local income tax equal to 10% of your income tax. For example, if your income tax is ₩5,000,000, your local tax is ₩500,000.
Example: ₩50,000,000 Annual Salary
- Taxable income (after deductions): ~₩36,750,000
- Income tax: ~₩4,222,500
- Local income tax: ~₩422,250
- Social insurance: ~₩4,800,000
- Estimated net annual pay: ~₩40,555,250
Flat Tax Option for Foreigners
Foreign workers in Korea can choose a flat 19% tax rate on their gross salary instead of the progressive rates above. This option may benefit high-income expats — generally those earning above ₩100,000,000 per year. You must elect this option when filing your annual tax return. Note: the flat rate does not include local income tax or social insurance.
Same Tax Rules for Foreign and Korean Workers?
Foreigners on work visas pay the same progressive rates and social insurance rates as Korean citizens. The key differences: foreigners can elect the flat 19% rate (not available to Koreans), national pension requirements vary by nationality based on bilateral social security agreements, and some deductions (like housing subscription savings) may not apply to non-citizens. For standard salary income deductions and credits, the rules are identical.
4 Major Social Insurances in Korea (2026 Rates)
All employees in South Korea — including foreigners — must contribute to four social insurance programs. Your employer deducts the employee share from your monthly paycheck and pays a matching amount. The 2026 social insurance rates in Korea are:
| Insurance | Employee | Employer | Notes |
|---|
| National Pension | 4.75% | 4.75% | Increased from 4.5% in 2026 |
| Health Insurance | 3.595% | 3.595% | Based on monthly salary |
| Long-term Care | 13.14% | 13.14% | Of health insurance amount |
| Employment Insurance | 0.9% | 0.9%+ | Employer rate varies by size |
Combined, employees pay approximately 9.6% of their monthly salary toward social insurance. For a salary of ₩3,500,000 per month, that is roughly ₩336,000.
National Pension for Foreigners
Whether the national pension is mandatory for foreigners depends on your home country. Citizens from countries with a social security agreement with Korea (e.g., USA, Canada, Germany, Japan, and 30+ others) may be exempt from Korean national pension if they contribute to their home country's system. Citizens from countries without an agreement must contribute. Some nationalities can receive a lump-sum refund when leaving Korea.
Pension Refund When Leaving Korea
If you contributed to the Korean national pension and your country does not have a social security agreement with Korea, you can apply for a lump-sum pension refund when you permanently leave the country. The refund includes your employee contributions (4.75% of salary each month) plus a portion of investment returns. You must apply within 5 years of departure through the National Pension Service. Citizens from agreement countries typically have contributions count toward their home country's pension instead.
Health Insurance Costs for Expats
For employed expats in 2026, health insurance costs 3.595% of your monthly salary, with your employer matching the same amount. Long-term care insurance adds 13.14% of your health insurance premium. For a ₩3,500,000 monthly salary, that means approximately ₩125,825 for health insurance plus ₩16,533 for long-term care — totaling about ₩142,358 per month. This covers you and your dependents registered under the National Health Insurance Service (NHIS).
Freelancer 3.3% Withholding Tax in Korea
If you work as an independent contractor or freelancer in Korea, your client withholds 3.3% from each payment — 3% income tax plus 0.3% local income tax. This is called 원천징수 (withholding at source) and applies to anyone working under a service contract rather than as a salaried employee.
How 3.3% Withholding Works
- Your client deducts 3.3% before paying you
- For example: ₩10,000,000 payment → ₩330,000 withheld → ₩9,670,000 received
- The withheld amount is credited toward your annual tax return
- Annual filing is in May (종합소득세 신고)
- If your actual tax liability is lower, you receive a refund
Who Does This Apply To?
The 3.3% withholding applies to foreign freelancers in Korea on eligible visas (E-7, D-10, F-2, F-5, etc.). It covers tutoring, consulting, design, development, translation, and other freelance work. Note that freelancers are generally not covered by the 4 major insurances — you may need to enroll in the National Health Insurance Service (NHIS) individually.
Is 3.3% a Final Tax or Prepayment?
The 3.3% withholding is strictly a prepayment — not a final tax. When you file your annual return in May, your actual tax is calculated based on total income minus deductions and expenses. The 3.3% already withheld is credited against this amount. Many freelancers earning under ₩50,000,000 per year receive refunds because their effective rate, after the standard expense deduction, is lower than 3.3%.
Annual Tax Filing for Freelancers
All freelancers who received payments with 3.3% withholding must file a 종합소득세 신고 (annual income tax return) during May. You report total freelance income, claim business expenses — either actual documented expenses or the standard expense rate (단순경비율, typically 40%–80% by industry) — and calculate your final tax. If total withholding exceeds your actual liability, you receive a refund. Filing is mandatory for foreign freelancers. A tax accountant (세무사) can help optimize your filing.
Frequently Asked Questions
Income Tax for Foreign Workers
Do foreigners pay tax in Korea?▾
Yes. All foreigners earning income in South Korea are subject to Korean income tax, regardless of visa type. Your employer withholds income tax, local income tax (10% of income tax), and social insurance contributions from your monthly salary. The same progressive tax brackets (6%–45%) that apply to Korean citizens also apply to foreign workers. Additionally, foreigners have the exclusive option of a flat 19% tax rate on gross salary, which Korean nationals cannot use.
How much tax do foreigners pay in South Korea?▾
It depends on your salary and chosen tax method. Under the progressive system, most foreigners earning ₩30,000,000–₩80,000,000 annually pay an effective income tax rate of roughly 6%–15% after deductions. Social insurance adds approximately 9.6% on top. For example, on a ₩50,000,000 annual salary, expect about ₩4,200,000 in income tax, ₩420,000 in local tax, and ₩4,800,000 in social insurance — leaving roughly ₩40,580,000 in net take-home pay. Use our Income Tax Calculator for your exact amount.
Do foreigners pay the same tax as Koreans?▾
Mostly yes. Foreigners on work visas in Korea pay the same progressive income tax rates (6%–45%) and the same social insurance rates as Korean citizens. The key differences are: (1) foreigners can elect a flat 19% tax rate on gross salary, which is not available to Koreans; (2) national pension obligations vary by nationality based on bilateral social security agreements; and (3) some tax deductions (like housing subscription savings) may not apply to foreigners. For standard salary deductions and credits, the rules are identical.
What is the flat 19% tax rule in Korea?▾
Foreign workers in South Korea can elect a flat 19% tax on their entire gross salary instead of the progressive rates (6%–45%). This is beneficial for high-income earners — typically those making above ₩100,000,000 annually, where the progressive rate exceeds 19%. You must elect this option when filing your annual tax return. The 19% applies to gross salary with no deductions or credits allowed. Local income tax (10% of income tax) and social insurance contributions are charged separately on top.
Can foreigners choose between progressive tax and 19% flat tax?▾
Yes. Foreign employees in South Korea can choose whichever method results in lower tax each year. Under progressive taxation, rates range from 6% to 45%, but you benefit from deductions like the earned income deduction, personal exemption (₩1,500,000 per dependent), and various credits. Under the flat 19% rate, no deductions are allowed — it applies to your entire gross salary. Most foreigners earning under ₩80,000,000 per year pay less with the progressive system. You can switch between the two methods each tax year.
Pension & Social Insurance
Is national pension mandatory for foreigners in Korea?▾
It depends on your nationality. Citizens from countries with a social security agreement with Korea — including the USA, Canada, Germany, Japan, UK, France, Australia, and 30+ others — may be exempt if they contribute to their home country’s pension system. Citizens from countries without an agreement (such as China, Vietnam, Philippines, and Indonesia) must contribute 4.75% of their monthly salary in 2026. Your employer pays a matching 4.75%. Check with the National Pension Service (NPS) for your country’s specific status.
Can foreigners get a pension refund when leaving Korea?▾
Yes, but eligibility depends on your nationality. Citizens from countries without a social security agreement with Korea can apply for a lump-sum pension refund when they permanently leave the country. You must apply within 5 years of departure. The refund includes your employee contributions (4.75% of salary each month) plus a portion of investment returns. Citizens from agreement countries (USA, Japan, Germany, etc.) generally cannot receive a lump-sum refund — instead, their Korean contributions count toward their home country’s pension benefits. Apply through the National Pension Service.
How much is health insurance in Korea for expats?▾
For employed expats in 2026, the health insurance rate is 3.595% of your monthly salary, deducted automatically from your paycheck. Your employer pays a matching 3.595%. On top of this, long-term care insurance costs 13.14% of your health insurance premium. For a monthly salary of ₩3,500,000, that means approximately ₩125,825 for health insurance plus ₩16,533 for long-term care — totaling about ₩142,358 per month. This covers you and your dependents registered under the National Health Insurance Service (NHIS).
Do part-time workers pay 4 major insurances in Korea?▾
It depends on your working hours and contract duration. Employees working 15 hours or more per week and employed for at least 1 month are generally required to enroll in all 4 major insurances: national pension (4.75%), health insurance (3.595%), long-term care (13.14% of health insurance), and employment insurance (0.9%). Workers under 15 hours per week are typically exempt from national pension and health insurance but may still be covered by employment insurance. These rules apply equally to Korean and foreign workers on eligible visas.
Freelancer & Contractor Tax
What is 3.3% tax in Korea?▾
The 3.3% is a withholding tax applied to freelancers and independent contractors in South Korea. It consists of 3.0% income tax plus 0.3% local income tax. When a company pays a freelancer, they deduct 3.3% before making the payment and report it to the National Tax Service. For example, on a ₩10,000,000 payment, ₩330,000 is withheld and ₩9,670,000 is paid to the freelancer. This is not a final tax — it is a prepayment credited toward the freelancer’s annual tax filing in May.
Do freelancers need to file annual tax in Korea?▾
Yes. All freelancers and independent contractors who received payments with 3.3% withholding must file an annual income tax return (종합소득세 신고) during May of the following year. You report your total freelance income, claim eligible business expenses, and calculate your actual tax liability. If the total 3.3% withholding exceeds your actual tax, you receive a refund. If your actual tax is higher, you pay the difference. Filing is mandatory for foreign freelancers as well — failure to file can result in penalties and additional tax charges.
How to claim expenses as a freelancer in Korea?▾
Freelancers in Korea can deduct business expenses when filing their annual tax return in May. There are two methods: (1) Actual expenses (실제 경비) — keep receipts for office rent, equipment, transportation, internet, and supplies; or (2) Standard expense rate (단순경비율) — a fixed percentage set by the National Tax Service, varying by industry (typically 40%–80%). For freelancers earning under ₩75,000,000 annually, the standard rate is often simpler and more beneficial. For higher income or significant documented expenses, the actual expense method may save more.
Is 3.3% final tax or prepayment?▾
The 3.3% withholding is strictly a prepayment — not a final tax. It is an advance toward your annual income tax liability. When you file your return in May, your actual tax is calculated based on total annual income minus eligible deductions and expenses. The 3.3% already withheld throughout the year is then credited against this amount. If your actual tax is lower than what was withheld, you receive a refund. Many freelancers with annual income under ₩50,000,000 receive refunds because their effective tax rate, after applying the standard expense rate and basic deductions, falls below 3.3%.
Can I get a tax refund in Korea?▾
Yes. Salaried employees can receive refunds through the year-end tax settlement (연말정산) in January–February, when your employer recalculates your actual tax liability for the year. Common refund triggers include medical expense deductions, education costs, housing loan interest, and charitable donation credits. Freelancers who had 3.3% withheld may also receive refunds when filing their annual return in May if their effective tax rate after deductions is below 3.3%. Foreign employees are eligible for most of the same deductions and credits as Korean workers.