Pension Savings Tax Credit Calculator
Last updated: 2026-06-25
Pension savings earn a tax credit on contributions up to 6 million KRW per year — 16.5% if your gross salary is 55 million KRW or less, and 13.2% above that.
The formula is: tax credit = min(annual contribution, 6,000,000) × rate (16.5% or 13.2%). Example: 6M contribution + 50M salary → 990,000 KRW refund.
Enter contribution & income
Estimated tax credit refund
0 KRW
| Item | Value |
|---|---|
| Annual contribution | |
| Eligible amount (limit 6M KRW) | |
| Over the limit (excluded) | |
| Applied credit rate | |
| Tax credit (refund) amount |
The actual refund applies within your final tax due, and combining with an IRP raises the limit to 9M KRW. This result is a reference estimate. Confirm the details at Hometax (National Tax Service).
How to use it
- Enter annual contribution — the amount you have paid (or will pay) into pension savings this year, in KRW.
- Enter gross salary — employees enter annual gross salary; the self-employed enter total income.
- View the result — press Calculate to see the eligible amount (6M-KRW limit), the applied credit rate and the estimated tax credit refund in a table.
How the pension savings tax credit works
Pension savings (pension savings funds and pension savings insurance) are a leading product for combining retirement preparation with tax savings. Up to 6 million KRW of your annual contribution is eligible for the tax credit, and the rate varies by income. If your gross salary is 55 million KRW (total income 45 million) or less, the rate is 16.5%; above that it is 13.2%, both including the local income tax.
| Annual contribution | Salary ≤ 55M (16.5%) | Salary > 55M (13.2%) |
|---|---|---|
| 3,000,000 KRW | 495,000 KRW | 396,000 KRW |
| 6,000,000 KRW (limit) | 990,000 KRW | 792,000 KRW |
| 9,000,000 KRW | 990,000 KRW (6M cap) | 792,000 KRW (6M cap) |
After maxing out the pension savings limit (6M KRW), adding an IRP raises the combined limit to 9M KRW, with the same credit rate on the extra 3M. Note, however, that withdrawing credited funds early triggers a 16.5% other-income tax, so receiving the money as a pension after age 55 is better. The retirement income you build with pension savings can be entered as monthly pension in the Retirement Fund Calculator to lower the fund you need.
Frequently asked questions (FAQ)
What is the pension savings tax credit limit?
Pension savings alone qualify for a tax credit on up to 6 million KRW per year. Combined with an IRP (individual retirement pension), you can claim up to 9 million KRW. This calculator uses the 6-million-KRW pension savings limit, and any contribution above the limit is excluded from the credit.
How are the 16.5% and 13.2% rates split?
If your gross salary is 55 million KRW or less (or total income 45 million KRW or less), the rate is 16.5%; above that it is 13.2%. Both rates include the 10% local income tax. For example, a worker earning 50 million KRW who contributes 6 million KRW gets 6,000,000 × 16.5% = 990,000 KRW.
Are tax credit and refund the same thing?
A tax credit directly reduces the tax you owe. At year-end settlement, if the tax already withheld exceeds the credit, you are refunded the difference. But if your final tax due is smaller than the credit, only that much is reduced, so your actual refund depends on the size of your tax bill.
What happens if I cancel pension savings early?
Withdrawing credited contributions and earnings early triggers a 16.5% other-income tax — in effect clawing back the tax benefit you received. So it is better to receive the money as a pension after age 55, when a much lower pension income tax (3.3–5.5%) applies.
Related calculators & guides
National Pension Calculator
Estimate your monthly pension from contribution years and income.
Retirement Fund Calculator
Estimate the retirement fund you need from your expenses.
Retirement Simulator
Simulate at what age your assets run out.
National Pension & Pension Savings Basics
An intro guide to the Korean pension system in one place.
Last updated: 2026-06-25