What is Korean Year-End Tax Settlement?

Yeonmal Jeongsan (연말정산) is an annual tax reconciliation where your actual tax liability is compared against withheld taxes. You may receive a refund or owe additional tax.

What is the foreigner flat tax (19%)?

Foreign workers can elect a flat 19% tax rate on gross income instead of progressive rates (6-45%). Good for high earners but no deductions allowed.

Should I choose flat tax or progressive tax?

Usually flat tax benefits those earning >150M KRW. Progressive is better for most with deductions. This calculator auto-compares both methods.

What deductions can reduce my tax?

Credit card spending, medical expenses, rent payments, and pension contributions can all reduce your tax base under the progressive system.

2026 Korea Year-End Tax Calculator | Flat Tax vs Progressive

2026 Year-End Tax Calculator

Refund or Pay? Estimate your "13th Month Salary".
Special Feature: We automatically compare the 19% Flat Tax vs. Progressive Tax to find your best rate.

Expert Audited

Last Updated: Feb 2026

What is Year-End Tax Settlement? (Yeonmal Jeongsan)

Yeonmal Jeongsan is the process of reconciling the taxes already withheld from your monthly salary with your actual final tax liability for the year. By applying various social insurance deductions, credit card spending, and rent credits, you determine if you've overpaid (Refund) or underpaid (Payable). For foreigners in Korea, this is essential to maximize refunds.

1 Basic Income

Annual Gross Income (Pre-tax)

KRW

Foreigner Flat Tax (19%) Check to force, or we auto-compare

Auto-Compare

2 Major Deductions

Credit Card Spending

KRW

Debit Card / Cash Receipt

KRW

Medical Expenses

KRW

Rent Tax Credit (Wolse)

Estimated Result

0 KRW

Final Tax Liability 0 KRW

Prepaid Tax (Est.) 0 KRW

* Prepaid tax is estimated based on the simplified tax table (100%).
(+) means Refund, (-) means Payable.

📌 Expat Tax Guide 2026

19% Flat Tax Rate

Foreign workers can choose to pay a flat 19% tax on their gross income instead of the progressive tax (6~45%).

Good for: High earners (usually > ~150M KRW).
Trade-off: No deductions allowed (Credit card, Rent, Medical, etc. are ignored).
Valid for: 20 years from start of work.

Progressive Tax (Standard)

Standard Korean tax system used by locals. Tax rate increases with income (6% ~ 45%).

Good for: Most employees (< 150M KRW).
Benefit: Allows various deductions (Card, Rent, Medical) to lower your tax base.

Don't worry about choosing now. Your company's accounting team (or tax accountant) should automatically apply the more favorable method for you. However, to benefit from the Progressive Tax method, you MUST submit your income deduction documents (PDF from Hometax) during the Year-End Settlement period (Jan-Feb).