How year-end tax settlement works
Every month your employer withholds income tax from your pay using a standard table. In January and February your employer works out the tax you really owe for the whole year — using your family, spending and other documents — and settles the difference in your February pay. That is year-end tax settlement (연말정산). Foreign employees go through it exactly like Koreans.
Key dates for 2026 income
| When | What happens |
|---|---|
| November 2026 | Hometax opens its year-end preview (연말정산 미리보기) with your card spending for January–September. A good time to check where you stand. |
| By December 31 | Last day for anything that counts for 2026: pension savings or IRP payments, card spending, rent paid by transfer, donations. |
| About January 15, 2027 | The simplified data (연말정산 간소화) opens on Hometax. Log in with a certificate registered to your alien registration number. Medical bills that are missing can be reported on the first days. |
| From about January 20 | Final data, including late submissions by hospitals and shops, is available. |
| January–February | Hand in the data and your deduction report to your employer by the company’s deadline (HR will tell you). Attach the flat-rate application if you choose 19%. |
| February pay (sometimes March) | Your refund is added to — or the extra tax taken from — your pay. Nothing to apply for separately. |
| By the end of February | Your employer gives you the withholding tax receipt (원천징수영수증). |
| By March 10 | Your employer files the statement with the National Tax Service. |
| May 2027 | Missed something, or had two jobs that were not combined? File a global income tax return yourself in May. Up to 5 years later you can still ask the tax office to correct it. |
The National Tax Service confirms the exact dates each January. HR sets its own deadline for your documents — usually earlier than you expect.
What foreigners can claim
If you are a resident — you have lived in Korea for 183 days or more, or you live here — you get the same deductions and credits as a Korean employee. Non-residents get very few.
| Deduction or credit | Resident | Non-resident |
|---|---|---|
| Your own basic deduction (₩1.5M) | Yes | Yes |
| Spouse and family you support | Yes | No |
| National Pension contributions | Yes | Yes |
| Health and employment insurance premiums | Yes | No |
| Credit and debit card spending | Yes | No |
| Housing savings (주택청약) | Only as the spouse of a household head with no home | No |
| Child tax credit | Yes | No |
| Monthly rent (월세) credit | Yes, if you meet the conditions | No |
| Insurance, medical, education, donation credits | Yes | No |
| Wage income tax credit | Yes | Yes |
Not deductible for anyone: medical bills from hospitals abroad, schools and academies abroad, and card spending abroad.
The 19% flat rate
Foreign employees can choose to pay a flat 19% (20.9% with local tax) on all their pay instead of the normal 6–45% rates — but then nothing is tax-free and no deductions or credits apply, not even the insurance your employer pays for you. It only pays off on high salaries. See where the flat rate starts to win →
Questions
When do I get my year-end tax refund?
Your employer adds the refund to your February pay (some companies use March). There is no separate application — just hand in your documents on time.
What if I don’t hand anything in?
Your employer can only give you your own basic deduction and the ₩130,000 standard tax credit, so you may get less back — or pay more.
Should I choose the 19% flat tax rate?
Only if your pay is high. With local tax and the employer insurance that becomes taxable, the flat rate costs about 22% of your pay, so it usually wins only from around ₩175 million a year for a single person. See the flat tax comparison.
Can I claim family members who live abroad?
If you are a resident and really support them, family abroad can count as dependents. Expect your employer to ask for documents proving the relationship (from your home country, usually with a Korean translation). Their medical bills and school fees abroad do not count.
Do medical bills or card spending abroad count?
No. The National Tax Service says medical bills from hospitals abroad, fees for schools and academies abroad, and card spending abroad are not deductible.
I missed a deduction. Is it too late?
No. You can file a global income tax return in May, or ask the tax office to correct it (경정청구) within 5 years.
The calculator follows the Income Tax Act and the Restriction of Special Taxation Act as they apply to 2026 income, and the National Tax Service’s year-end tax settlement manual for foreigners. It reproduces the worked example in that manual exactly. Last checked October 20, 2026. It is an estimate, not tax advice — your employer’s settlement uses your real documents. National Tax Service: 126; foreigners’ tax help in English: 1588-0560.