3-Step Guide to Simulating Korean Freelance & Side-Job Taxes
Many expats, F-visa holders, and bilingual professionals working in South Korea are surprised during the May Global Income Tax season because the 3.3% withholding rate is only a preliminary prepayment, not your final tax rate. Follow these three steps to verify your exact settlement amount.
Step 1 · Enter your annual gross salary from your primary employer (set to 0 if you are a full-time 3.3% independent contractor). The calculator automatically deducts the statutory Korean Earned Income Deduction up to the KRW 20,000,000 cap.
Step 2 · Input your total gross 3.3% freelance revenue and select the matching National Tax Service (NTS) simple expense ratio. Only the net income remaining after subtracting expenses is added to your taxable base.
Step 3 · Review whether your combined taxable income pushes you into a higher progressive bracket (15%, 24%, or 35%) and check if your net freelance income stays below the KRW 20,000,000 National Health Insurance threshold.
2026 South Korea Progressive Income Tax Brackets (NTS Standard)
Under Article 55 of the Korean Income Tax Act, your combined taxable income is taxed progressively across eight brackets. A 10% Local Income Tax is added on top of the national rate.
| Combined Taxable Base (KRW) | National Tax Rate | Effective Rate (incl. 10% Local Tax) | Progressive Deduction (KRW) |
|---|---|---|---|
| Up to 14,000,000 | 6% | 6.6% | 0 |
| 14,000,001 – 50,000,000 | 15% | 16.5% | 1,260,000 |
| 50,000,001 – 88,000,000 | 24% | 26.4% | 5,760,000 |
| 88,000,001 – 150,000,000 | 35% | 38.5% | 15,440,000 |
| Over 150,000,000 | 38% – 45% | 41.8% – 49.5% | 19,940,000 – 65,940,000 |
If you are a full-time freelancer with zero salaried income and earn KRW 25,000,000 in gross 3.3% revenue as an IT contractor or language tutor (61.7% to 64.1% expense ratio), your net taxable base falls into the lowest 6% bracket after personal deductions. Because 3.3% of your gross revenue was already withheld, you will typically receive a substantial tax refund in June/July after filing on Hometax in May.
Frequently Asked Questions (FAQ)
Q1. Does visa type (E-2, E-7, F-2, F-5, F-6) affect the 3.3% tax calculation?
The tax calculation formula under the Income Tax Act applies identically to all tax residents in Korea regardless of nationality. However, foreign residents on employer-sponsored visas (such as E-2 or E-7) must obtain prior Immigration permission before engaging in any side-job or freelance activity.
Q2. Why are single-digit KRW amounts truncated to zero?
Article 47 of the Korean National Treasury Funds Management Act mandates that any fractional tax amount below 10 KRW be truncated (rounded down to the nearest 10 KRW) for both national income tax and local income tax calculations.
Q3. How do I file my May Global Income Tax return in Korea?
Between May 1 and May 31 each year, you can log into NTS Hometax (or the Sontax mobile app), review your pre-filled 3.3% withholding records under the Global Income Tax menu, apply the simple expense ratio, and enter your Korean bank account for direct refund deposit.