South Korea Income Tax Rates 2026: Personal, Capital Gains and Corporate Tax
A guide to the Republic of Korea's individual income tax brackets, local income tax, tax residency, capital gains, corporate income tax and selected historical rates for 2017-2018.
Tax year matters: The current 2026 rules below should not be used to calculate liabilities for 2017 or 2018. Rates are marginal, not flat rates on all taxable income, and additional taxes or special rules may apply.
Personal income tax rates in South Korea for 2026
Article 55 of the Income Tax Act prescribes progressive national income tax on a resident's global taxable income. The following bands are expressed in Korean won (KRW), not thousands of KRW.
| Annual taxable income (KRW) | National marginal rate | Local marginal rate |
|---|---|---|
| Up to 14 million | 6% | 0.6% |
| Over 14 million to 50 million | 15% | 1.5% |
| Over 50 million to 88 million | 24% | 2.4% |
| Over 88 million to 150 million | 35% | 3.5% |
| Over 150 million to 300 million | 38% | 3.8% |
| Over 300 million to 500 million | 40% | 4.0% |
| Over 500 million to 1 billion | 42% | 4.2% |
| Over 1 billion | 45% | 4.5% |
The local individual income tax is generally equivalent to 10% of the national income tax. The combined top marginal rate is generally 49.5%, before considering any special tax treatment.
Resident and non-resident income tax
Under the National Tax Service (NTS) framework, Korean tax residents are generally taxable on worldwide income, subject to special rules for certain foreign residents and foreign-source income. Non-residents are generally taxable on Korean-source income. Residence is assessed using domestic domicile and presence rules, not citizenship alone. Tax treaties may alter the final result.
Employment income, business income, investment income, retirement income and certain capital gains can be subject to different computation, withholding and reporting provisions. Non-residents may have more limited access to deductions and credits.
Local income tax
Local individual income tax is separately payable to the relevant local government. For ordinary progressive income taxation, its marginal rates are shown alongside national rates in the table above. Corporate local income tax is also distinct from national corporate income tax.
Alternative minimum tax
The alternative minimum tax (AMT) limits the benefit of certain tax exemptions and reliefs. For qualifying individual business income, the calculation generally compares actual tax after exemptions with a prescribed percentage of tax before exemptions. The relevant percentages can be 35% or 45%, depending on the amount and circumstances. AMT generally does not apply to ordinary employment income. See the NTS for current guidance and applicable exceptions.
Capital gains tax in South Korea
South Korean capital gains taxation depends on the asset, holding period, residence status and applicable exemptions. Real estate, certain shares and other specified assets may be taxed under separate capital gains rules rather than the progressive global income tax schedule.
For non-residents, Korean-source gains can be subject to withholding and treaty provisions. In certain share disposal cases, withholding may be calculated by reference to gross proceeds or substantiated gains, depending on the legal conditions; it is incorrect to apply a universal 11% or 22% rate to every transaction. Verify the asset-specific rules with the National Tax Service and the relevant treaty.
Corporate income tax rates in South Korea for 2026
Article 55 of the Corporate Tax Act sets out the general national corporate income tax brackets for ordinary domestic corporations for tax years beginning in 2026. Certain small-scale corporations and other entities are subject to special provisions.
| Annual taxable corporate income (KRW) | National marginal rate |
|---|---|
| Up to 200 million | 10% |
| Over 200 million to 20 billion | 20% |
| Over 20 billion to 300 billion | 22% |
| Over 300 billion | 25% |
These national rates exclude local corporate income tax. Korean resident companies are generally taxed on worldwide income; foreign companies are generally taxed on Korean-source income, with permanent-establishment and withholding rules depending on the facts. Additional taxes may apply to certain corporations and types of income.
Historical tax rates for 2017-2018
The original article addressed tax years 2017-2018. The historical figures below are retained for context only and should not be used for 2026 filings.
2017 individual income tax brackets
| 2017 annual taxable income (KRW) | National rate | Local rate |
|---|---|---|
| Up to 12 million | 6% | 0.6% |
| Over 12 million to 46 million | 15% | 1.5% |
| Over 46 million to 88 million | 24% | 2.4% |
| Over 88 million to 150 million | 35% | 3.5% |
| Over 150 million to 500 million | 38% | 3.8% |
| Over 500 million | 40% | 4.0% |
The 2018 personal income tax schedule changed, including higher top brackets. The 2017 table must not be treated as the 2018 schedule.
Historical corporate tax context
For 2017, the general national corporate income tax bands were 10% up to KRW 200 million, 20% from KRW 200 million to KRW 20 billion, and 22% above KRW 20 billion. A 25% top rate for taxable income above KRW 300 billion applied from 2018. The former webpage grouped 2017 and 2018 together; these years should be distinguished when computing historical liabilities.
Legal sources and further guidance
- Korean National Tax Service - English portal
- Income Tax Act, Article 55 - personal income tax rates
- Corporate Tax Act, Article 55 - corporate tax rates
- NTS - corporate tax rate guidance
- Korean legislation - English translation of Income Tax Act
This article is general information, not individualized tax advice. Statutory translations, administrative interpretations, tax treaties and amendments should be checked for the relevant tax year.