Korean Gift Tax Calculator

When you receive assets from someone for nothing, you as the recipient owe gift tax. This calculator takes the amount received now, your relationship to the giver, any allowance you have already used on gifts from the same person within the past ten years, and whether you will file on time, and returns the gift tax actually due. The result is laid out step by step: the allowance available this time, the taxable base, the rate that applies, the tax before credits, and the credit for filing on time.

Two things decide the size of the bill. The first is the allowance, which depends on your relationship to the giver; the second is the progressive rate applied to whatever is left after the allowance. A gift from a spouse carries an allowance of ₩600 million, while a gift from someone outside the family carries none at all. The same ₩100 million can be tax-free or cost millions of won depending on who gave it.

A child receiving wedding money or help with a home purchase from parents, a parent planning to pass assets on early, and a spouse transferring title. Knowing the tax before the gift lets you decide how much to receive and whether to split it over time. Working it out afterwards is too late.

It matters most to anyone who has already received a gift from the same person a few years ago. The allowance is a ten-year running total, so whatever was used last time is gone this time. That is why the calculator has a field for allowance already used within ten years. Leave it empty and the tax comes out lower than it really is.

The allowances are set by 상속세 및 증여세법 제53조: ₩600 million from a spouse, ₩50,000,000 from a parent or grandparent (reduced to ₩20,000,000 if the recipient is a minor), ₩50,000,000 from a child or grandchild, and ₩10,000,000 from other relatives, each as a ten-year total. The rates come from 제26조, which 제56조 applies to gifts, so they are identical to inheritance tax: 10% on a taxable base up to ₩100 million, 20% up to ₩500 million, rising to 50% above ₩3 billion.

The calculation has four steps. First, subtract the allowance used in the past ten years from the cap for your relationship to find what remains. Second, subtract that remaining allowance from the value of the gift to get the taxable base. Third, multiply the base by the rate for its bracket and subtract the progressive deduction to get the tax before credits; the statute phrases this as "₩10 million plus 20% of the excess over ₩100 million", but the progressive-deduction form gives the same answer. Fourth, if you file within 3 months from the end of the month of the gift, 제69조 grants a credit of 3% of that tax. What remains is the amount due.

Suppose an adult child receives ₩300 million from their father, having already received ₩30 million four years earlier and used the allowance on it. The parent-or-grandparent cap of ₩50,000,000 less the ₩30 million already used leaves ₩20 million of allowance this time. ₩300 million less ₩20 million gives a taxable base of ₩280 million, which sits in the 20% bracket: ₩56 million less the progressive deduction of ₩10,000,000 is ₩46 million before credits. Filing on time earns a 3% credit of ₩1.38 million, so the tax due is ₩44.62 million.

Forget the earlier gift and enter zero for allowance already used, and the calculator would apply the full ₩50,000,000, cutting the taxable base to ₩250 million and understating the tax. The difference comes back, with penalties, when the tax office aggregates ten years of gifts after you file.

The most common is believing the allowance resets with every gift. It is a ten-year total, so each use shrinks what is left. The second is counting each parent separately. The parent-or-grandparent allowance is one shared pool of ₩50,000,000 covering father, mother and grandparents together, not ₩50,000,000 each.

The third is calculating only gift tax on a property. Real estate also triggers local acquisition tax on top of the national gift tax, and in a regulated zone that acquisition tax can be charged at the heavy rate. The fourth is missing the deadline. Filing after 3 months forfeits the 3% credit and adds penalties for non-filing and late payment. Even when the tax is nil because the gift sits within the allowance, filing creates a record that settles the ten-year total later.