The dependent deduction is not set by age — the ₩1M income line divides it
Two employees on ₩50M a year finish year-end settlement with final tax of ₩3,869,250 and ₩3,374,250, ₩490,000 apart. Same salary, cards and insurance; the difference was whether two parents were entered in the dependents box. Yet some who entered their parents saw no reduction, because the parents' pension exceeded ₩1M of annual income. The dependent deduction is not set by age. Age is one door, the ₩1M income line is the second, and the same relative can be claimed by only one person.
Conditions used in the calculation
- Case
- total pay ₩50M · ₩80M · two parents · no cards or insurance · 2026 rates
- Step ①
- value: ₩1.5M per person off taxable income · tax saved = ₩1.5M × your rate
- Step ②
- the age door: lineal ascendants 60 or over · descendants and adoptees 20 or under (through the year they turn 20) · siblings 20 or under or 60 or over · spouse and disabled persons any age · judged on 31 December · parents qualify if actually supported, even living apart
- Step ③
- the income door: annual income over ₩1M disqualifies · wages only: total pay ₩5M or less · income is measured after expenses and deductions by type
- Step ④
- duplication: one relative for one taxpayer · order: actual supporter → last year's claimant → higher income · no splitting
- Timing
- as of 2026-09-05 the proposal to raise the line to ₩3M is a government bill · not yet passed
Results
- ₩50M · single
- earned income deduction ₩12.25M · 15% bracket · final tax ₩3,517,500 · ₩3,869,250 with local income tax
- ₩50M · two parents
- ₩3,374,250 · ₩490,000 less (one ₩247,500 · two ₩495,000)
- One dependent added (₩50M)
- income tax ₩225,000 · ₩247,500 with local income tax
- ₩80M
- 24% bracket · ₩360,000 per dependent · ₩396,000 with local income tax
- Brother on ₩50M vs brother on ₩80M
- the ₩80M brother claiming both parents is over ₩290,000 cheaper · the lower earner claiming one costs nearly ₩150,000 more a year
- The income door
- a part-time job paying ₩4M qualifies · ₩2M of net rental income from a shop does not
- Assuming parents living apart cannot be claimed
- ₩250,000
At a glance
At ₩50M the 15% bracket gives ₩247,500 per dependent; at ₩80M the 24% bracket gives ₩396,000 (with local income tax).
- Total pay ₩50M (15%)₩247,500
- Total pay ₩80M (24%)₩396,000
Why it works this way
Two employees earn ₩50M a year. At year-end settlement one has final tax of ₩3,869,250, the other ₩3,374,250, ₩490,000 apart. Same salary, same cards, same insurance; the difference was whether two parents were entered in the dependents box. Yet among those who entered their parents, some saw no reduction, because the parents' pension exceeded ₩1M of annual income. The dependent deduction is not set by age. Age is one door, and the ₩1M income line is the second. Most people think a parent over 60 can simply be entered, add them without knowing the income line, and face a reassessment years later. Age is the usual focus, but the income door closes more often, and as of 2026-09-05 the proposal to raise the line to ₩3M is a government bill not yet passed.
Income Tax Act Article 50(1) · Article 47 · Article 55.
- ₩1.5M per personoff taxable income, not off tax · tax saved = ₩1.5M × your rate
- Total pay ₩50Mearned income deduction ₩12.25M · 15% bracket · single: final tax ₩3,517,500 · ₩3,869,250 with local tax · one dependent → ₩225,000 · ₩247,500 with local tax · two ₩495,000
- Total pay ₩80M24% bracket · ₩360,000 per dependent · ₩396,000
Claiming through the sibling in the higher bracket benefits the whole family, which confuses people. Not knowing, the lower earner claims and pays nearly ₩150,000 more a year.
Step ② The age door. Lineal ascendants 60 or over; descendants and adoptees 20 or under, through the year they turn 20; siblings 20 or under or 60 or over; spouse and disabled persons any age. Judged on 31 December of that year, and they must share a livelihood, but parents qualify if actually supported even when living apart. That 60 suffices and co-residence is not required confuses people, and a 21-year-old child is out even as a student. Not knowing, you miss ₩250,000 assuming parents living apart cannot be claimed, or claim a 21-year-old and get reassessed.
Income Tax Act Article 50(1). This is where the second person in the opening parted.
- The lineannual income over ₩1M disqualifies · wages only: total pay ₩5M or less
- Incomemeasured after expenses and deductions by type, so each is counted differently · the national pension after the pension income deduction · capital gains count too
- Examplesa part-time job paying ₩4M qualifies · ₩2M of net rental income from a shop does not
Not knowing, several years of deductions are reassessed at once with penalties. As of 2026-09-05 the proposal to raise the line to ₩3M has not passed.
Step ④ Duplication: one person only. The same dependent goes into only one taxpayer's deduction, and if two claim, the system catches it and reassesses one. The order is actual supporter, last year's claimant, then higher income, and a working couple's child goes to one side only. With a brother on ₩50M and one on ₩80M, the ₩80M brother claiming both parents is over ₩290,000 cheaper. It can change each year but only one person per year, and splitting is not allowed, which confuses people; not knowing, siblings both claim and get reassessed, or the lower earner claims and pays ₩290,000 more a year. The family placement sheet is three lines: ① each relative's age and annual income against 60, 20 and ₩1M; ② those through both doors go to the person with the highest rate; ③ check who claimed last year and align. With three lines, dependent preparation is done; revisit when a parent turns 60, a child turns 20, or pension or capital gains arise.
All four steps are passed: ₩1.5M × your rate, the age and income doors, one person only. The ₩490,000 on the same ₩50M was two parents, and the reason it did not fall was the ₩1M line. Not knowing the income door brings years of reassessment, not knowing placement costs ₩290,000 a year, assuming parents living apart cannot be claimed costs ₩250,000. Two things to do now: write down each parent's and child's age and annual income now, and decide who claims by tax rate and align with last year. Income is measured differently by type and the ₩3M proposal has not passed the Assembly, so consult a tax adviser.
The legal basis
Drawn from government announcements and the statutes themselves as primary sources, covering only the relevant part.
Income Tax Act Article 50(1) (Basic deduction)
In force Current (checked 2026-09-05)
₩1.5M each for the taxpayer and for a spouse or dependent with annual income of ₩1M or less (total pay ₩5M or less if wages only). Lineal ascendants 60 or over, lineal descendants and adoptees 20 or under, siblings 20 or under or 60 or over. No age requirement for disabled persons.
What this means
Both the age door and the income door must be passed for ₩1.5M. The income door closes more often.
Income Tax Act Article 53 (Scope of dependents sharing a livelihood)
In force Current (checked 2026-09-05)
Family members registered at the same address sharing a livelihood. Lineal ascendants living apart for housing reasons are included if actually supported.
What this means
Parents may live apart. Actual support is the test.
Income Tax Act Enforcement Decree Article 106 (Order of deduction for duplicated dependents)
In force Current (checked 2026-09-05)
Where two or more taxpayers claim the same person, the deduction goes to one person in the order of actual supporter, the previous year's claimant, and the higher comprehensive income.
What this means
One person only. No splitting, and if both claim, one is reassessed.
Income Tax Act Articles 47 and 55 (Earned income deduction · Rates)
In force Current (checked 2026-09-05)
Earned income deduction of ₩12.25M at ₩50M of total pay. 15% on taxable income over ₩14M up to ₩50M, 24% up to ₩88M.
What this means
The value of ₩1.5M splits into ₩247,500 and ₩396,000 by bracket.
Run it on your own numbers
The calculator opens with these conditions already filled in. Change the figures and your own case comes straight out.
Open the Year-End Tax Settlement
Frequently asked
Can I claim my parents once they are over 60?
Age is one door. Annual income over ₩1M disqualifies them; with wages only, total pay of ₩5M or less is allowed. The national pension is measured after the pension income deduction, and capital gains count too.
Do parents living apart qualify?
Yes. Parents qualify if actually supported even when living apart. Assuming they must live with you costs ₩250,000.
Can my brother and I split our parents?
No. The same dependent goes to one person only. If both claim, the system catches it and reassesses one. The higher-rate sibling claiming benefits the whole family, and between ₩50M and ₩80M two parents make over ₩290,000 of difference.
Does one dependent cut my tax by ₩1.5M?
No. ₩1.5M comes off taxable income, and the tax saved is ₩1.5M × your rate. At ₩50M the 15% bracket gives ₩247,500 with local income tax; at ₩80M the 24% bracket gives ₩396,000.
What about a 21-year-old university student?
Descendants qualify through the year they turn 20. A 21-year-old is out even as a student, and claiming one brings a reassessment. Disabled persons have no age limit.
I heard the income line rises to ₩3M?
The 2026 tax reform proposal to raise ₩1M to ₩3M, and ₩5M to ₩7.5M for wages only, is a government bill. As of 5 September 2026 it is under review and has not passed; the line is ₩1M now.
Results are estimates based on the inputs and on the rules as at the stated date. They may differ from a lender's actual assessment, and the rules change often. Take professional advice before any decision that matters.