Does South Korea Tax Foreigners? Income Tax Rules for Expats

The short answer

Yes, South Korea taxes foreigners. Whether and how much you pay depends on your residency status:

• Tax residents — taxed on their worldwide income.
• Non-residents — taxed only on Korean-source income.

Almost every foreigner who works in Korea for a Korean employer pays Korean income tax on their salary. The rules are in the Income Tax Act, and the National Tax Service (NTS) publishes an English guide for foreign residents.

Resident vs non-resident (the 183-day rule)

Korea’s Income Tax Act defines a resident as a person who has a domicile in Korea or a place of residence that has been maintained for 183 days or more in a tax year.

• 183 days or more — you are a resident, taxed on worldwide income.
• Less than 183 days — you are a non-resident, taxed only on Korean-source income.

If your circumstances are ambiguous, facts such as the location of your immediate family, the main place of your assets, and the length and nature of your stay are considered. Short-term visitors and people on shorter assignments are usually treated as non-residents, while anyone effectively settling in Korea is a resident.

Income tax rates (progressive brackets)

Korean income tax is progressive. The brackets in effect for 2023 through 2025 are:

Taxable income (KRW)	National income tax rate
Up to 14 million	6%
14 million – 50 million	15%
50 million – 88 million	24%
88 million – 150 million	35%
150 million – 300 million	38%
300 million – 500 million	40%
500 million – 1 billion	42%
Over 1 billion	45%

The rate applies to the portion of income within each bracket, not to your whole income. Deductions (earned income deduction, personal deductions, etc.) are subtracted before the brackets apply.

Local income tax

On top of national income tax, you also pay local income tax (지방소득세). It is a simple 10% surcharge on your national income tax.

In practice, most employers withhold both together, so on your payslip you will usually see a line for income tax and a line for local income tax that is exactly 10% of the income tax.

Withholding and year-end settlement

If you are an employee, your employer withholds Korean income tax from each monthly paycheck under the payroll withholding system.

• Monthly withholding is a provisional amount based on estimated annual income.
• Every February, the employer runs a year-end settlement (연말정산) that reconciles the provisional withholding against your actual deductions for the year and either refunds or collects the difference.

Foreign employees should give their employer their foreign tax records and proof of local residency (if applicable) so the correct deductions and foreign tax credit are applied. Residents who have other income (rent, freelance work, etc.) may need to file a global income tax return (종합소득세 신고) in May for the previous year.

Where to check your situation

Because residency and tax depend on individual facts, check the authoritative sources:

1. National Tax Service (nts.go.kr) — English guide for foreign residents and the international tax page.
2. Income Tax Act (via law.go.kr) — Articles 1-2 (resident definition) and 55 (rate table).
3. Your employer’s HR/payroll team for withholding and year-end settlement details.
4. A tax advisor if you have income from multiple countries, to review foreign tax credits.

This article reflects the rules as published for 2025–2026. Brackets and amounts are revised by the NTS, so confirm the figures for the year you file.