📌 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).