Foreign Worker Tax FAQ — Flat Rate vs Progressive (Korea 2026)

Under Article 18-2 of Korea's Income Tax Act, foreign workers earning income in Korea can choose to apply a flat rate of 19% directly to their gross salary instead of the standard progressive tax. Combined with local income tax (10% surcharge), the total effective rate is 20.9%. This option is available for income earned within the first 20 years of employment in Korea.

You need to compare both methods with your actual salary. Generally, the flat rate 19% is more advantageous for higher-income earners with few deductions. If your salary is relatively low or you have many deductions (dependents, medical, housing), the progressive tax may result in less tax. Use the calculator above to compare instantly.

Yes. Local income tax (지방소득세) is 10% of the income tax amount and applies to both methods equally. For the flat-rate method: income tax = 19%, local income tax = 1.9%, total effective rate = 20.9%.

The standard progressive tax is applied automatically. To choose the flat rate, you must submit an "Foreign Worker Flat-Rate Application Form" to your employer's payroll department during year-end tax adjustment (usually January–February). If missed, you may be able to correct it during the May global income tax filing period — check with NTS or a tax accountant.

The flat rate applies to income earned within 20 years of the date you first started working in Korea. Income earned after 20 years is subject to the standard progressive tax.

No. This tool applies only the personal basic deduction (no dependents or special deductions) and is for reference only. Actual tax will differ based on your full deductions. Please use NTS Hometax (hometax.go.kr) or consult a certified tax accountant (세무사) before filing.