Korean pension income tax calculator
Works out the tax on money drawn from a pension savings account or IRP, and what changes above ₩15m a year.
Works out the pension income tax on money drawn from a Korean pension savings account or IRP. The rate depends on your age and the type of pension, and once annual receipts pass ₩15m the method of taxation itself changes — worth checking before you settle on a withdrawal plan.
Your numbers
What you enter is saved in this browser, so it is still here next time
The older you are, the lower the rate
The part of your pension savings and IRP that came from contributions you claimed the tax credit on, plus the growth on it
An annuity paid until death is taxed at 4.4%, which is lower than the age-based rate below 70
Tax on it
Tax for the year
₩660,000
What reaches you
₩11,340,000
- Drawn in the year
- ₩12,000,000
- Rate applied
- 5.5%
On the low separate rate
- Rate for your age
- 5.5%
- Rate actually applied
- 5.5%
- Room left below ₩15,000,000
- ₩3,000,000
Drawing ₩15,000,000 or less a year keeps it on the low separate rate of 3.3–5.5%, as here. Keeping within that room is what saves the tax.
Rates follow the National Tax Service's withholding schedule for pension income (5.5% at 55–69, 4.4% at 70–79, 3.3% from 80, and 4.4% for a lifetime annuity); the threshold for separate taxation of private pensions is ₩15,000,000 a year. Public pensions such as the National Pension, the part funded by severance pay, and contributions you did not claim a credit on are taxed differently and are not included here. Above the threshold, whether comprehensive or separate taxation works out better depends on your other income — check with a tax professional or the National Tax Service before you file.
Make a link with these numbers
Opening the link fills this screen with the same values. Useful for going through it with a partner, or for comparing two sets of conditions.
At 65 drawing ₩12m a year, the tax is ₩660,000
At or below ₩15m the tax is amount × age-based rate: 5.5% from 55 to 69, 4.4% from 70 to 79 and 3.3% from 80, local income tax included. At 65 on ₩12m that is ₩660,000, leaving ₩11,340,000. A life annuity applies the lower of 4.4% and the age-based rate, so at 65 it drops to 4.4% and ₩528,000, while at 80 it stays at 3.3%. "Room left" is ₩15m minus the amount drawn, ₩3m here.
Above ₩15m, 16.5% applies to the whole amount, not the excess
Drawing ₩20m a year at 65 puts 16.5% on the full ₩20m, not on the ₩5m over the line: ₩3.3m. Within ₩15m it would be 5.5% and ₩1.1m, so the "difference" is ₩2.2m. "Spread over" is the amount divided by ₩15m and rounded up — ₩20m gives 2 years.
Comprehensive taxation and the National Pension are not calculated
The other route above the threshold, comprehensive taxation, adds the pension to your other income and cannot be worked out from the pension alone, so this screen calculates only the 16.5% separate route. Nor is the rate change when a spread crosses age 70. The amount field takes only the credited contributions and their growth — uncredited contributions, severance-funded money and the National Pension are taxed differently and left out, and the ₩15m comparison uses only that amount. Below 55 it is not a pension but an early withdrawal, so the whole amount is taxed as other income at 16.5% and the ₩15m comparison and the split suggestion do not appear.
Common questions
QHow much tax is due on a pension?
Private pensions such as a pension savings account or IRP are taxed separately at 5.5% from 55 to 69, 4.4% from 70 to 79 and 3.3% from 80 (local income tax included). A life annuity is taxed at 4.4%, which is better if you are 69 or under.
QWhat happens above ₩15m a year?
The low separate rates no longer apply. You must either elect separate taxation at 16.5% on the whole amount or be taxed globally — it does not apply only to the excess. Going slightly over the threshold can raise the bill sharply, so it needs watching.
QDoes spreading withdrawals reduce the tax?
Keeping annual receipts at or below ₩15m preserves the low rate and is often better. If your other income is small, global taxation may work out better instead, so compare across your whole income.
QIs the national pension included here?
No. Public pensions such as the National Pension are taxed differently and are not covered. Amounts funded from severance pay, and principal that never received a tax credit, are also treated differently.
QWhat if it is exactly ₩15m?
The low rate. The threshold is strictly above ₩15m, so exactly ₩15m is taxed at the age-based rate — ₩825,000 at 65 — and one won over puts 16.5% on the whole amount, ₩2,475,000.
QA life annuity at 80 — what rate applies?
3.3%. The 4.4% for a life annuity is used only where it is lower than the age-based rate, and from 80 the age-based rate wins. A life annuity helps only between 55 and 69, where the age-based rate is 5.5%; in the 70s both are 4.4%.