Korea Year-End Settlement (연말정산) 2027 Refund Calculator
Estimate your Korea year-end settlement (연말정산) refund for 2026 tax year. Major deductions: credit card spending above 25% of salary, pension savings (퇴직연금/IRP) up to ₩7M, housing-account, mortgage interest, medical above 3%, donations. Source: nts.go.kr.
Credit Card Spending Deduction Calculation
Spending above 25% of annual salary qualifies for deduction. Deduction rate: 15% for regular credit cards, 30% for debit/check cards and cash receipts, 40% for traditional markets, 30% for public transport. Maximum deduction ₩3M (up to ₩7M with adders). Example: ₩50M salary × 25% = ₩12.5M threshold. Spending ₩20M → ₩7.5M excess → 15-30% deduction. Source: National Tax Service.
Pension Savings — ₩7M Tax Credit Cap
퇴직연금/IRP contributions up to ₩7M/year qualify for tax CREDIT (not deduction). Credit rate 13.2% (annual income ≤₩55M) or 16.5% (≤₩45M low-income). Example: ₩7M contribution × 13.2% = ₩924,000 direct tax refund. ISA-conversion-to-pension also adds ₩3M/year additional credit. Source: nts.go.kr.
Housing-Related Deductions
Mortgage interest: 100% deductible up to ₩18M for 10-15 year fixed, ₩20M for 15+ year fixed, capped at total mortgage interest paid. Housing-account savings (주택청약): 40% deduction on first ₩2.4M (max ₩960k deduction). Long-term renters (rent up to 75% of regional median): 12% credit on rent up to ₩7.5M. Source: National Tax Service.
Documentation Required and Filing Method
Most deductions auto-loaded into NTS's 연말정산 간소화 service (홈택스). Login with public certificate, accept system-fetched data, manually add items not auto-loaded (some donations, foreign expenses). Submit to employer by March. Refund typically arrives April-May via bank deposit. Source: hometax.go.kr.
Frequently Asked Questions
What is 연말정산 in Korea?
Year-end tax settlement reconciling withheld tax vs actual tax owed based on full-year deductions. Refund if over-withheld, additional tax owed if under-withheld.
When is 연말정산 filed?
January-February for the prior tax year. Employer files for employees. Submit deduction proofs to employer or via 홈택스 (hometax.go.kr).
What's the credit card deduction threshold?
Spending must exceed 25% of annual salary. Excess deductible at 15-40% rate depending on payment method. Max deduction ₩3M base + adders.
How much is the pension savings tax credit?
13.2% on up to ₩7M (16.5% for low-income). Maximum credit ₩924k-1.155M. Includes ISA-to-pension conversion (+₩3M).
Can foreigners get 연말정산 refund?
Yes — foreign tax residents with year-round Korea employment file 연말정산 same as nationals. Foreign-source income may need special handling. Source: nts.go.kr.