Korea Year-End Tax Card Deduction Calculator
Estimate Korea's card income deduction for the 2026 tax year, and the tax it saves at each rate.
How the card deduction works
- For a resident with earned income (daily workers excluded), only spending above 25% of your gross salary (the minimum-spending amount) is deducted. Credit card, debit card, cash receipt and prepaid card spending are added together and must pass this threshold (Restriction of Special Taxation Act Art. 126-2(1)); spending abroad does not count. Tax year 2026 means spending from 1 January to 31 December 2026, settled in early 2027.
- The deduction rate depends on where you spent. Traditional markets, public transit and culture and sports use their own rate whatever the payment method — credit, debit or cash receipt (para. 2).
- The minimum-spending amount is filled with the lowest-rate spending first: credit card, then debit card and cash receipts (and culture and sports), then traditional market and transit (para. 2, item 6). Once you are above the threshold, the more of the same total you spend by debit card, the larger the deduction.
- There is a cap. The deduction is limited to the basic cap; any excess earns extra cap up to the traditional-market and transit (and culture and sports) deduction amount (paras. 10 and 11).
Deduction rate by where you spent — tax year 2026
| Where you spent | Rate |
|---|---|
| Credit card | 15% |
| Debit card, cash receipt, prepaid card | 30% |
| Traditional market | 40% |
| Public transit | 40% |
| Culture and sports (gross salary of ₩70 million or less only) | 30% |
Deduction cap — higher with children
The December 2025 amendment (in force 1 January 2026) raised the basic cap by ₩500,000 per dependant child (₩250,000 above a ₩70 million gross salary), up to ₩1,000,000 (₩500,000) (para. 10). The extra cap is based on the traditional-market and transit deduction amounts (para. 11).
| Gross salary | No children | 1 child | 2 or more |
|---|---|---|---|
| ₩70 million or less | ₩3,000,000 | ₩3,500,000 | ₩4,000,000 |
| Over ₩70 million | ₩2,500,000 | ₩2,750,000 | ₩3,000,000 |
Extra cap: on top of the basic cap, the traditional-market plus transit deduction amount (the 40% amount, not the spending) is added up to ₩2,000,000. At a gross salary of ₩70 million or less the culture and sports deduction is included, up to ₩3,000,000.
A child here is a lineal descendant aged 20 or under (adopted and foster children included; no age limit if disabled) with income of ₩1 million or less (or earned income only up to ₩5 million gross), who is not claimed for the basic deduction by another resident (Enforcement Decree Art. 121-2(18)). A child your spouse already claims does not count.
Examples — deduction by spending pattern
| Gross salary | Children | Credit card | Debit / cash receipt | Traditional market | Transit | Deduction |
|---|---|---|---|---|---|---|
| ₩40,000,000 | None | ₩15,000,000 | ₩0 | ₩0 | ₩0 | ₩750,000 |
| ₩40,000,000 | None | ₩5,000,000 | ₩10,000,000 | ₩0 | ₩0 | ₩1,500,000 |
| ₩50,000,000 | 1 | ₩10,000,000 | ₩20,000,000 | ₩3,000,000 | ₩2,000,000 | ₩5,500,000 |
| ₩80,000,000 | 2 or more | ₩30,000,000 | ₩30,000,000 | ₩5,000,000 | ₩5,000,000 | ₩5,000,000 |
The table is computed with the same function as the calculator on this page. The same total spent mostly by debit card gives a larger deduction; above the cap, children and traditional-market and transit spending decide the result.
How the deduction becomes tax saved
An income deduction does not cut tax directly; it lowers your taxable income. The estimated saving is the deduction × your income-tax rate × 1.1 (including the 10% local income tax). Your rate is the bracket your taxable income falls in (Income Tax Act Art. 55). Find your taxable income on your year-end settlement result.
| Taxable income | Income-tax rate |
|---|---|
| ₩14,000,000 or less | 6% |
| Over ₩14,000,000, up to ₩50,000,000 | 15% |
| Over ₩50,000,000, up to ₩88,000,000 | 24% |
| Over ₩88,000,000, up to ₩150,000,000 | 35% |
| Over ₩150,000,000, up to ₩300,000,000 | 38% |
| Over ₩300,000,000, up to ₩500,000,000 | 40% |
| Over ₩500,000,000, up to ₩1,000,000,000 | 42% |
| Over ₩1,000,000,000 | 45% |
What this calculation does not see
- Spending by your spouse and by lineal ascendants and descendants who live with you can be added when they meet the income test (annual income of ₩1 million or less, etc.) (para. 3; Enforcement Decree Art. 121-2(3)). Add that spending to the fields yourself.
- Insurance premiums, school fees, national and local taxes and utility bills (electricity, water, gas, phone), apartment management fees, road tolls, gift certificates, lease payments and purchases of property subject to acquisition tax (such as cars) are not eligible spending (Art. 126-2(4); Enforcement Decree Art. 121-2(6)). Remove any of these before you enter your card total.
- Your actual eligible spending is the figure on the National Tax Service year-end settlement simplification service. This result is an estimate from the numbers you enter.
- The extra deduction for increased spending, which existed for 2024 only, has ended and is not included.
- The deduction is for a resident with earned income (daily workers are excluded), and spending abroad is not eligible (Art. 126-2(1)). If you are a foreign national, ask your employer or the tax office whether your year-end settlement allows it.
Basis: National Law Information Center, Restriction of Special Taxation Act Art. 126-2 (in force 18 September 2026, including the 23 December 2025 amendment) and its Enforcement Decree Art. 121-2 (in force 18 September 2026), Income Tax Act Art. 55 (checked October 2026), and the legislative reasons for the children-based cap increase. This is an estimate and may change if the tax law is amended at the end of the year. Amounts are rounded down to the won.
Frequently asked questions
How much do I have to spend before the deduction starts?
Only spending above 25% of your gross salary (the minimum-spending amount) is deducted. At a gross salary of ₩40 million, the first ₩10 million gives no deduction; above that, each place's rate applies. Spending exactly the minimum gives ₩0.
Is a debit card or a credit card better?
A credit card is deducted at 15%, a debit card or cash receipt at 30%. The minimum-spending amount is filled with credit card spending first (para. 2, item 6), so if you spend above it, more debit card spending means a larger deduction. If you are already at the cap (₩2.5 million to ₩4 million), spending more does not add to the deduction.
How much does the cap rise with children?
From tax year 2026, with 1 child the basic cap is ₩3.5 million at a gross salary of ₩70 million or less and ₩2.75 million above; with 2 or more it is ₩4 million and ₩3 million. A child must be 20 or under and not claimed for the basic deduction by someone else.
Are traditional markets and transit 40% even on a credit card?
Yes. Traditional market and transit spending is added across credit card, debit card and cash receipts at 40% (para. 2, items 1 and 2). That is why this calculator asks where you spent, not how you paid.
How much tax does the deduction save?
The table under the result shows the estimated saving at each income-tax rate. Read the row for the bracket your taxable income falls in. It is the deduction × the income-tax rate × 1.1.
Is what I type saved?
No. The calculation runs only in your browser and nothing is sent or stored.
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.