Korea Year-End Tax Settlement for Foreign Workers 2026: Dependent Deduction and the Income Limit

Bottom line: Foreign employees who are tax residents in Korea can also claim the basic personal deduction for dependents in year-end tax settlement — but only if the dependent lives with you (or is treated as doing so) and meets both an income test and an age test. Miss either one and the whole deduction disappears, not just part of it.

If you didn't know: The basic deduction is 1,500,000 won per qualifying dependent. To claim a parent (lineal ascendant) aged 60 or older, that parent's annual income must be 1,000,000 won or less (or, if it's wage income only, total gross pay of 5,000,000 won or less). Claim a parent who fails this test and get caught later, and the tax office claws back the tax you saved plus a penalty. A 2026 tax reform bill would raise this income ceiling to 3,000,000 won, but as of 2026-11-03 that bill has not passed the National Assembly, so the current 1,000,000-won limit still applies.

This article summarizes official guidance and is not legal, medical, or financial advice.

Journey stage: Claiming a dependent who doesn't qualify can trigger a tax clawback and penalty at your next settlement · Verified 2026-11-03