Year-End Tax Refund Calculator

Estimate your Korean year-end tax refund. Includes card, medical, education, and pension deductions. 2026 tax law.

About This Tool

The Year-End Tax Settlement Calculator (연말정산 계산기) estimates your tax refund or additional payment from Korea's annual year-end tax adjustment process. Input your salary, deductions (insurance, education, medical, donations, housing), and credits to see if you will get money back or owe more.

Basic Info

Total income tax withheld this year

Card / Cash Receipt Spending

15% deduction rate

30% deduction rate

30% deduction rate

Tax Credit Items

15% of amount exceeding 3% of salary

15% tax credit

15% up to 10M, 30% above

12-15% credit, limit 7-9M KRW

Housing Deductions

Tax credit if salary ≤70M

Limit 2.4M KRW

Limit 18M KRW

How It's Calculated

Year-end tax settlement follows these steps:

1. Total Salary − Non-taxable allowances = Gross Taxable Income 2. Employment Income Deduction (근로소득공제): sliding scale 70%–2% based on income brackets 3. Income Deductions: Personal (₩1.5M/person), National Pension, Health Insurance, Employment Insurance 4. Special Deductions: Insurance premiums, medical expenses (>3% of salary), education, housing rent/interest, donations 5. Taxable Income = Gross − Employment Deduction − Income Deductions − Special Deductions 6. Calculated Tax = Progressive rates (6%–45%) 7. Tax Credits: Child credit, retirement pension (12–15%), standard credit (₩130K) 8. Determined Tax = Calculated Tax − Credits 9. Refund/Additional = Already withheld − Determined Tax (positive = refund)

⚠️ Disclaimer

Year-end tax settlement involves dozens of deduction items with specific eligibility requirements and documentation. This calculator covers major deductions but cannot reflect every scenario. Use the National Tax Service's simplified year-end settlement service (간소화 서비스) for official calculations.

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How to Use

  1. Enter your total annual salary and prepaid tax (withheld income tax).
  2. Select the number of dependents and children under 20.
  3. Enter annual spending on credit cards, debit cards, and cash receipts.
  4. Enter medical, education, donation, and pension savings/IRP amounts.
  5. Enter housing-related amounts (rent, housing subscription, loan interest).
  6. Click Calculate Refund to see your estimated result.

FAQ

What is Korean year-end tax settlement?
Year-end tax settlement (연말정산) recalculates your annual income tax based on actual income and deductions, compared to the tax withheld monthly. The difference is either refunded or collected. It happens every January-February.
What is the difference between income deduction and tax credit?
Income deductions reduce your taxable base (before tax rate is applied). Tax credits directly reduce the calculated tax amount. Higher earners benefit more from income deductions, while lower earners benefit more from tax credits.
What are the card spending deduction limits?
Spending above 25% of total salary qualifies. Credit cards get 15% deduction rate, debit cards and cash receipts get 30%. Limits: 3M KRW for salary ≤70M, 2.5M for ≤120M, 2M for above.
How does pension savings deduction work?
Combined pension savings + IRP contributions receive tax credits: 15% for salary ≤55M, 12% above. Maximum eligible: 9M KRW for salary ≤100M, 7M for above.
How can I maximize my refund?
Use debit cards and cash receipts more (2x deduction rate vs credit cards). Max out pension savings/IRP contributions. Register all medical and education receipts. Claim monthly rent credit if salary is under 70M KRW.

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