19% Flat Tax for Foreigners in Korea: Is It Worth It? 외국인 단일세율 19%

Short answer

The flat rate is 19% of all your pay, plus 10% local income tax on top — 20.9%. Nothing is tax-free and no deductions or credits apply. Because even the health and employment insurance your employer pays for you becomes taxable, the real cost is about 22% of your pay. The normal rates only climb above that on high salaries.

Normal rates vs flat rate, by pay

Single, no dependents

Spouse and two children born 2006–2016

✓ = the lower tax. Total yearly tax including local income tax, for 2026 income. Assumes all pay is taxable, National Pension, health and employment insurance at 2026 rates, and no card, medical, education or other deductions — which would make the normal rates cheaper still. Calculated with the same code as the calculator, where you can try your own numbers.

How the flat rate works

• Rate: 19% income tax on your total pay, plus local income tax of 10% of that — 20.9% in all.
• Nothing is tax-free: meal allowances and other non-taxable pay count, and so does the employer’s share of your health and employment insurance (National Tax Service FAQ).
• No deductions or credits: no family deductions, card deduction, child credit, medical, education, rent or pension savings credits.
• Kept separate: pay taxed at the flat rate is not added to your other income in a May tax return.

Who can choose it

• Foreign employees, for each tax year that ends within 20 years of the first day they worked in Korea. Changing jobs or leaving and coming back does not restart the 20 years.
• If you were already working in Korea on January 1, 2014, the 20 years count from that date.
• Not available if you work for a company specially related to you (특수관계기업).

How to choose it

At year-end settlement, attach the flat-rate application for foreign employees (외국인근로자 단일세율적용신청서) to your deduction report and give both to your employer. If you did not, you can still choose it when you file your own global income tax return in May. You decide year by year, so run the numbers each time.

Questions

Is the 19% flat tax worth it in Korea?

Usually not. For a single person with no other deductions it only becomes cheaper from about ₩175 million a year — and later, about ₩191 million, for someone supporting a spouse and two school-age children.

Who can choose the flat rate?

Foreign employees, for tax years ending within 20 years of the first day they worked in Korea. It is not available if you work for a company specially related to you (특수관계기업). For people already working in Korea on January 1, 2014, the 20 years count from that date.

How do I apply?

Attach the flat-rate application (외국인근로자 단일세율적용신청서) to your deduction report and hand it to your employer with your year-end documents. If you missed it, you can choose it when you file your own return in May.

Will the rate change?

For 2026 income (settled in early 2027) it is 19%. In its August 3, 2026 tax revision plan the government proposed raising it to 21% (23.1% with local tax) for income earned from January 1, 2027. It is a proposal until the National Assembly passes it, usually in December.