Korea Freelancer Income Tax Calculator — 3.3% Withholding Refund
Enter yearly freelance revenue and an expense rate to see the Korean income tax refund or tax due after 3.3% withholding.
The calculation goes in this order
- Income = revenue − business expenses (Income Tax Act Art. 19(2)). Expenses are the ordinary costs that correspond to the revenue (Art. 27); a filer who is eligible for the simplified expense rate and keeps no books treats revenue multiplied by that rate as expenses (Enforcement Decree Art. 143(3) item 1-2).
- Taxable income = income − income deductions. The basic deduction is ₩1,500,000 a year per person for you and each qualifying family member (Art. 50), and the National Pension contributions you paid are deducted as the pension premium deduction (Art. 51-3). If the deductions exceed income, taxable income is 0.
- Computed tax = taxable income × progressive rates (Art. 55(1)). The bracket table is below.
- The standard tax credit of ₩70,000 comes off the computed tax to give the determined tax. It is for people with taxable income other than earned income who do not hold the "sincere business operator" status, and any part above the computed tax is disregarded (Art. 59-4(9) item 2, Art. 61(2)).
- Local income tax is calculated separately by applying the table in Local Tax Act Art. 92(1) to the same taxable income. Each bracket and amount is one tenth of the income tax table, and the standard credit is ₩7,000 (Restriction of Local Taxes Act Art. 97-4(9)). Local governments may raise or lower the rates by up to 50% by ordinance (Art. 92(2) of that Act), but this calculator uses the standard rates only.
- Settlement = determined tax − tax already withheld. Business income that is subject to withholding has 3% income tax withheld when you are paid, plus local income tax of one tenth of that, 0.3% (Income Tax Act Art. 129(1) item 3, Local Tax Act Art. 103-13). Together that is 3.3%. If the determined tax is lower than what was withheld you get the difference back; if it is higher you pay more.
Income tax brackets
The rates are progressive: taxable income is split into brackets and each slice is taxed at its own rate (Income Tax Act Art. 55(1)). The amount at the start of each formula is the tax on all lower brackets.
| Taxable income | Rate | Computed tax |
|---|---|---|
| Up to ₩14,000,000 | 6% | 6% of taxable income |
| Over ₩14,000,000 up to ₩50,000,000 | 15% | ₩840,000 + 15% of the amount over ₩14,000,000 |
| Over ₩50,000,000 up to ₩88,000,000 | 24% | ₩6,240,000 + 24% of the amount over ₩50,000,000 |
| Over ₩88,000,000 up to ₩150,000,000 | 35% | ₩15,360,000 + 35% of the amount over ₩88,000,000 |
| Over ₩150,000,000 up to ₩300,000,000 | 38% | ₩37,060,000 + 38% of the amount over ₩150,000,000 |
| Over ₩300,000,000 up to ₩500,000,000 | 40% | ₩94,060,000 + 40% of the amount over ₩300,000,000 |
| Over ₩500,000,000 up to ₩1,000,000,000 | 42% | ₩174,060,000 + 42% of the amount over ₩500,000,000 |
| Over ₩1,000,000,000 | 45% | ₩384,060,000 + 45% of the amount over ₩1,000,000,000 |
Income with 3.3% withheld is settled in the May return
The 3.3% withheld when you were paid is a prepayment, not the final tax. The actual tax is set only when you file the comprehensive income tax return from May 1 to May 31 of the next year (June 30 for those who submit a sincere-reporting confirmation) (Income Tax Act Arts. 70 and 70-2), and if more was withheld than the tax due you get the difference back. A refund does not happen automatically if you do not file. The 3% applies to business income that is subject to withholding (Art. 129(1) item 3); the Enforcement Decree decides which income counts.
Who sets the expense rate
The National Tax Service commissioner decides the benchmark and simplified expense rates by industry and announces them at least one month before the filing period starts (Enforcement Decree Art. 145). The simplified rate applies only to businesses whose revenue is below a set threshold (Enforcement Decree Art. 143(4)). Look up the rate for your industry code on Hometax, the NTS portal, and enter it yourself — this calculator does not pick an expense rate for you.
Example — a freelancer with 3.3% withheld
Assumes a simplified expense rate of 60% (real rates differ by industry), the basic deduction for yourself only and no other income deductions. Calculated with the same function as the calculator on this page.
| Yearly revenue | Taxable income | Income tax | Local income tax | 3.3% already withheld | Settlement |
|---|---|---|---|---|---|
| ₩20,000,000 | ₩6,500,000 | ₩320,000 | ₩32,000 | ₩660,000 | ₩308,000 refund |
| ₩30,000,000 | ₩10,500,000 | ₩560,000 | ₩56,000 | ₩990,000 | ₩374,000 refund |
| ₩50,000,000 | ₩18,500,000 | ₩1,445,000 | ₩144,500 | ₩1,650,000 | ₩60,500 refund |
| ₩80,000,000 | ₩30,500,000 | ₩3,245,000 | ₩324,500 | ₩2,640,000 | ₩929,500 to pay |
| ₩100,000,000 | ₩38,500,000 | ₩4,445,000 | ₩444,500 | ₩3,300,000 | ₩1,589,500 to pay |
| ₩150,000,000 | ₩58,500,000 | ₩8,210,000 | ₩821,000 | ₩4,950,000 | ₩4,081,000 to pay |
What this calculation does not cover
- It covers a tax resident of Korea (someone with a domicile in Korea or a residence of 183 days or more, Income Tax Act Art. 1-2) whose only income is business income. With earned income or other comprehensive income, the amounts are added together and the standard tax credit differs (Art. 59-4(9) item 1).
- It does not cover filing with the benchmark expense rate instead of the simplified rate, or the sincere-operator standard credit, the bookkeeping tax credit, penalty taxes and tax reductions.
- Withholding is calculated and taken each time you are paid. This calculator simplifies it to 3% of yearly revenue, so it can differ from what was actually withheld. Check the actual amount in your payment statement on Hometax.
- Income deductions other than the basic deduction must be entered as one total, and limits such as the overall cap on income deductions are not applied. Any interim prepayment of tax has to be settled separately.
- Amounts are rounded down to the won, so results can differ from Hometax by a few won.
- Non-residents are taxed under different rules (Income Tax Act Art. 1-2(1) item 2) and are not modelled here.
Basis: Korea Law Information Center — Income Tax Act Arts. 1-2, 19, 27, 50, 51-3, 55, 59-4, 61, 70, 70-2 and 129, its Enforcement Decree Arts. 143 and 145, Local Tax Act Arts. 92 and 103-13, and the Restriction of Local Taxes Act Art. 97-4 (checked October 2026). General guidance only; confirm your actual filing result on Hometax.
Frequently asked questions
How is the 3.3% refund calculated?
Subtract business expenses from revenue to get income, subtract income deductions such as the basic deduction to get taxable income, apply the bracket table to get the computed tax, and subtract the standard tax credit of ₩70,000 to get the determined tax. You get back the amount by which the 3% income tax already withheld exceeds the determined tax. Local income tax (withheld at 0.3%) is settled separately in the same way.
What happens if I do not file income that had 3.3% withheld?
The withheld tax is a prepayment that is settled by the May return (Income Tax Act Art. 70). If you do not file, no refund happens automatically, and if your income is large enough that you owe more, penalty taxes may apply. If the deadline has already passed, ask Hometax or your tax office what you can still do.
I was paid without the 3.3% withheld — how do I calculate?
With no withholding you pay the whole determined tax yourself in May. Choose "No — I was paid in full" in the calculator.
What expense rate should I enter?
It depends on your industry code. Look up the simplified expense rate that the National Tax Service announces for your industry on Hometax (Enforcement Decree Art. 145). If you are not eligible for the simplified rate you must keep books or file with the benchmark rate, and the result will differ from this calculator. If you know your actual expenses, you can enter those instead.
Which family members count for the basic deduction?
Besides you: your spouse (annual income of 1,000,000 won or less), and members of your household who are parents aged 60 or over, children aged 20 or under, or siblings aged 20 or under or 60 or over (annual income of 1,000,000 won or less), among others. There is no age limit for people with disabilities (Income Tax Act Art. 50). You are included automatically, so enter only the number of others.
Do I pay local income tax separately?
It is a separate local tax. The table in Local Tax Act Art. 92 is applied to the same taxable income and the result is about one tenth of the income tax. Check the Wetax and Hometax guides for how to file and pay.
Is what I enter stored?
No. The calculation runs in your browser only and nothing is sent to a server or saved.
More free tools
Add it to your home screen and it opens like an app — after the first visit it works offline too. What you type never leaves your device.