Korea Freelancer 3.3% Calculator
Estimate gross pay, withholding, and net pay for Korean personal-service business income subject to 3.3% withholding.
The 3.3% consists of 3% income tax and 0.3% local income tax. Employment income and occasional service income can be classified and taxed differently.
Basis for South Korean personal-service business-income withholding
Reference date and last reviewed: July 31, 2026
Calculation Basis
Applies the National Tax Service’s 3% income-tax rate for qualifying withholding-target business income and the commonly stated 3.3% total including individual local income tax. Personal-service business income assumes continuing services supplied independently without an employment relationship.
Reference Limits
A person described as a freelancer may still have employment income based on the actual arrangement, while a one-off service may be other income. This tool does not calculate final comprehensive income tax or a refund after expenses, deductions, credits, other income, and prepaid tax.
When to Confirm Officially
When income classification, withholding duties, payment statements, VAT treatment, or annual filing is unclear, check the contract and actual working arrangement against National Tax Service guidance or consult a Korean tax professional.
Usage Tips
Check the agreed gross amount and the expected deposit in either direction
Start with the gross contract amount to estimate take-home pay, or reverse-calculate the gross amount needed for a target deposit. Korea’s 3.3% treatment does not automatically apply to every freelance payment, so confirm whether the work is continuing independent business activity, employment, or an occasional service.
What is Korea Freelancer 3.3% Calculator?
The Korea Freelancer 3.3% Calculator splits withholding on qualifying personal-service business income into 3% income tax and 0.3% local income tax, then converts between a gross service payment and estimated net pay.
How to Use
- 1 Choose whether to calculate net pay from a gross contract amount or reverse-calculate gross pay from a target net amount.
- 2 Enter the amount in whole Korean won.
- 3 Review income tax, local income tax, total withholding, and net pay together.
Understand Korea’s 3.3% withholding and freelancer net pay
Last reviewed: July 31, 2026Personal-service business-income withholding formula
Income tax = gross × 3%; local income tax = gross × 0.3%; net = gross − income tax − local income tax
Each tax is truncated to a whole won. Reverse mode finds the smallest integer gross amount whose calculated net meets or exceeds the target.
Net pay from a KRW 1,250,000 gross contract amount
- • Gross-to-net mode
- • Gross contract amount: KRW 1,250,000
- 1. Income tax = 1,250,000 × 0.03 = KRW 37,500
- 2. Local income tax = 1,250,000 × 0.003 = KRW 3,750
- 3. Net = 1,250,000 − 37,500 − 3,750 = KRW 1,208,750
Total estimated withholding is KRW 41,250 and estimated net pay is KRW 1,208,750.
How to read the result
- For the same gross amount, the deposit after 3.3% withholding is approximately 96.7%.
- Withholding is prepaid tax and should not be treated as the final annual liability.
- The reverse result is the minimum whole-won gross amount that meets the target after the calculator’s tax handling.
Conditions that change the result
- This calculation does not apply unchanged to employment income, occasional-service other income, corporations, or nonresidents.
- It does not calculate comprehensive income tax or refunds after expenses, deductions, credits, other income, and prepaid tax.
- If a contract treats VAT separately, confirm the VAT and withholding base with the payer or a Korean tax professional.
Common input mistakes
- Do not apply 3.3% solely because a contract labels someone a freelancer; the actual working arrangement matters.
- Do not treat 3.3% withholding as a final tax bill or a guaranteed refund.
- Do not combine 10% VAT and 3.3% business-income withholding as though they were the same tax.
Reference Knowledge
- ● The income-tax withholding rate on qualifying business income is 3% of the payment.
- ● Including individual local income tax, the commonly stated combined withholding rate is 3.3%.
- ● The 3.3% withholding is a tax prepayment and is settled through the comprehensive income tax process using actual income, expenses, and deductions.
- ● For personal-service business income paid from July 1, 2024, withholding still applies when the income-tax amount is below KRW 1,000.
FAQ
Q. What is the net pay on KRW 1,000,000 gross?
Income tax is KRW 30,000 and local income tax is KRW 3,000, producing estimated net pay of KRW 967,000.
Q. What gross amount produces KRW 1,000,000 net?
Under this calculator’s whole-won handling, KRW 1,034,125 gross minus KRW 31,023 income tax and KRW 3,102 local income tax produces exactly KRW 1,000,000 net.
Q. Does every freelancer payment use 3.3%?
No. It generally applies to qualifying business income from ongoing independent personal services. Employment income and occasional service income may be classified and calculated differently.
Q. Does withholding remove the need to file an income tax return?
Withholding is a prepayment. The actual liability is generally settled through the following year’s comprehensive income tax process, so filing obligations must be checked separately.
Q. Will all of the 3.3% be refunded?
Not necessarily. A refund may arise only when the final liability after annual income, expenses, other income, deductions, and credits is lower than tax already withheld.
Q. Does this include 10% VAT?
No. This calculator covers business-income withholding only. Use the Korea VAT Calculator to split a supply value and VAT.
