Amended simplified payroll withholding tax table for earned income (applies to payroll tax withholding from March 1, 2026)
For taxpayers who have dependent children aged 8 to 20, the payroll withholding tax amount shall be calculated by deducting the applicable additional deduction amount (allowed based on the number of eligible children as shown in the table below) from the withholding tax amount determined under the Simplified Withholding Tax Table. If such deduction results in a negative amount, the withholding tax payable is deemed to be Won 0.
- Additional deduction allowed by the number of eligible children:
|
Number of children aged 8 - 20 |
Current |
Revised |
|
1 child |
Won 12,500 |
Won 20,830 |
|
2 children |
Won 29,160 |
Won 45,830 |
|
3 or more children |
Won 29,160 + Won 25,000 per additional child over 2 |
Won 45,830 + Won 33,330 per additional child over 2 |
Example:
Monthly salary of Won 3.5 million (excluding non-taxable income and child education subsidy)
Family members: Taxpayer, spouse, and 2 children aged 8-20
ü Number of dependent family members: 4
ü In this case, the withholding tax amount is calculated as Won 49,340 (withholding tax amount from the Simplified Withholding Tax Table extracted below (*)) – Won 45,830 (additional deduction allowed for 2 children aged 8-20) = Won 3,510
(*) Withholding tax amount from the Simplified Withholding Tax Table:
