How is the year-end tax refund calculated?

Start with your gross salary and subtract all applicable deductions to arrive at the taxable base. Apply the progressive income tax brackets to get a gross tax figure, then subtract tax credits (child, pension, insurance, medical, rent, etc.) to reach your final tax. Compare that to the income tax withheld throughout the year — the difference is your refund or additional payment.

What is the difference between credit and debit card deductions?

Credit card spending qualifies for a 15% income deduction; debit card spending and cash receipts qualify for 30%. However, only spending that exceeds 25% of your annual salary is eligible for any deduction — the first 25% is not counted.

What is the pension savings & IRP tax credit limit?

Up to ₩9M per year (pension savings ₩6M + IRP combined) qualifies for the tax credit. The credit rate is 16.5% for salaries under ₩55M and 13.2% for salaries above that threshold.

What are the conditions for rent deduction eligibility?

You qualify if: salary is ≤₩80M, you have no home ownership, and you are renting a unit ≤85㎡ or with a market value ≤₩400M. Deduction rates are: 17% for salary under ₩55M, 15% for ₩55M–₩70M, and 12% for ₩70M–₩80M.

What are the limitations of this simulator?

Non-taxable allowances, non-employment income, detailed special deduction comparisons (e.g., long-term housing savings), and certain other deduction items are not reflected. Estimation error is within approximately ±10%.

2026 Year-end Tax Refund Simulator — Preview My 13th Paycheck

Refund prediction with 9 inputs and extra tax savings

Expected Refund

—

Marginal Rate

15%

24%

35%

38%

40%

42%

45%

Gross Tax—

Final Tax—

Pre-paid Tax—

Basic Info

Annual Salary

×₩10K

Dependents (incl. self)

persons

Children aged 8+

persons

Spending

Annual credit card spending

×₩10K

Debit card & cash receipts

×₩10K

Deductions

Protection insurance premium

×₩10K

Medical expenses

×₩10K

Pension savings & IRP contributions

×₩10K

Annual rent payments

×₩10K

Tax Credit Breakdown

Tax Saving Action Insights

Refund by Deduction Scenario

My inputs Max limits

Current

—

Max limit

—

No deduction

—

Year-end Tax Saving Guide

Use credit cards first, then switch to debit after the 25% threshold

Spend up to 25% of your annual salary on credit cards, then switch to debit cards or cash receipts (30% deduction rate) for the remainder.

Pension savings by November, IRP by December

Annual contribution limit: ₩9M (pension savings ₩6M + IRP ₩3M). Tax credit rate: 16.5% for salary under ₩55M, 13.2% above.

Pool family medical expenses under one person

Medical tax credit is 15% of expenses exceeding 3% of your salary. You can consolidate family members' medical expenses under one person's return to maximize the credit.

Child tax credit applies from age 8

1 child: ₩150K credit, 2 children: ₩350K, 3 or more: ₩650K+. Note: this is adjusted for children already receiving the child allowance benefit.

Hometax simplified service opens January 15

The Hometax (Korea's online tax portal) year-end tax simplified service opens on January 15 each year. Download your receipts and submit them to your employer.

※ This is an estimate. Actual refund may differ based on Hometax simplified service data.

Year-end Tax Simulator