South Korea Income Tax Rates 2026: Personal, Corporate and Capital Gains Tax

An overview of the Republic of Korea's national and local income taxes, tax treatment of residents and nonresidents, company income tax, capital gains and the original 2018-2019 tax brackets.

1. Personal income tax in South Korea for 2026

Under Article 55 of the Income Tax Act, the national comprehensive income tax is calculated using progressive rates on the annual taxable base after applicable deductions. The following thresholds are in Korean won (KRW).

Local income tax is generally equivalent to 10% of the national income tax, so the combined top marginal rate is 49.5%. The tax calculation applies each rate only to the portion of the taxable base within that band. Tax on employment income may be reduced by applicable employment-income deductions, personal allowances and tax credits.

Local income tax and tax administration

National personal income tax is administered by the National Tax Service (NTS). Local income tax is separately administered under the Local Tax Act and related local tax legislation. The locality and income category determine the reporting procedure.

2. Tax residence and nonresident income

Residents: Individuals who have a domicile in Korea or meet the statutory residence-period test are generally taxable on worldwide income, subject to special rules for qualifying foreign residents and tax treaties. Residence is a legal determination and is not based on nationality alone.

Nonresidents: Individuals who do not meet the residence rules are generally taxed on Korean-source income. Employment income, business profits, interest, dividends, royalties and capital gains may be taxed under different withholding or filing rules. Treaty relief can override domestic rules when eligibility and documentation requirements are satisfied.

See the Korea Legislation Research Institute's English legislation portal and NTS guidance for applicable definitions and filing rules.

3. Capital gains tax in South Korea

Capital gains are not subject to one universal rate. Treatment depends on the asset, holding period, residence status, shareholding, transaction and available relief. Real property and qualifying share transfers can fall under separate capital gains provisions of the Income Tax Act. Some short-term property transactions, multiple-home situations or designated assets may attract special rates.

For certain Korean-source share transfers by nonresidents, domestic withholding may be computed by reference to the gross consideration or the gain, subject to conditions and tax treaty provisions. The original page's 11% and 22% descriptions should not be treated as universal current capital gains rates. Confirm the exact asset classification and statutory provision before applying a rate.

Official guidance: National Tax Service and Korean National Law Information Center.

4. South Korea corporate income tax rates for 2026

Article 55 of the Corporate Tax Act establishes progressive corporate income tax rates. For ordinary profit-making domestic corporations, the national rates applicable to fiscal years beginning on or after 1 January 2026 are:

Local corporate income tax is generally levied separately at approximately 10% of the national rate, making the combined ordinary marginal rates 11%, 22%, 24.2% and 27.5%, respectively. Certain specially classified corporations, sector-specific regimes, minimum taxes and tax incentives can alter the result. Corporate residence and permanent-establishment rules affect whether worldwide or Korean-source profits are taxable.

5. Alternative minimum tax and special provisions

Alternative minimum tax (AMT) provisions under the Restriction of Special Taxation Act may limit the benefit of certain deductions or exemptions. The historical article referred to a 35% limitation in connection with individual business income; this should not be read as a generally applicable 2026 AMT rate. Whether an AMT calculation is required depends on the taxpayer, income category and the specific incentive claimed.

6. Historical South Korea tax rates for 2018-2019

The original article recorded the following 2018 personal income tax bands, effective from 1 January 2018. They are reproduced for historical comparison only. All amounts are shown in KRW millions (the original table used thousands of KRW).

In the original 2018-2019 article, the national personal income tax was payable to the NTS and local income tax was payable to the relevant city or province. The original local-rate heading inconsistently referred to 2017 while stating an effective date of 1 January 2018; the table above is presented as historical 2018 information.

Historical corporate rates in the original article

Historical accuracy note: The original corporate table did not separately identify the higher bracket introduced for large companies; therefore it is retained as a record of the original article rather than presented as a complete legal schedule for 2018-2019. Refer to the archived Corporate Tax Act and year-specific NTS publications for a full reconstruction.

7. Principal laws and official references

• Income Tax Act, Article 55 - progressive national personal income tax rates.
• Corporate Tax Act, Article 55 - national corporate income tax bands and calculations.
• NTS personal income tax calculation guidance - official national brackets.
• NTS corporate tax guidance - official corporate tax bands from 2026.
• National Law Information Center - current legislation, amendments and archived versions.

This general information is not tax advice. Check the law in force for the relevant year, relevant treaty and individual circumstances before filing.