Calculate Korean inheritance tax and gift tax based on 2026 tax law. Includes tax bracket application, various deductions, and filing tax credit. Based on the South Korean Inheritance Tax and Gift Tax Act.
The results of this calculator are estimated taxes and may differ from actual tax liability.
Actual tax amounts can vary significantly depending on property valuation methods, detailed deduction items, and penalty tax applicability. For accurate tax calculation, please consult a tax professional or the Korean National Tax Service (126).
Choose Inheritance Tax or Gift Tax. Inheritance tax is levied when property is transferred upon death, while gift tax is levied on gratuitous transfers during the donor's lifetime. Both use the same tax brackets but differ in deductions. Based on South Korean tax law.
For inheritance tax, enter total assets, pre-gifted assets, debts, funeral costs, and financial assets. All amounts are in units of 10,000 KRW (man-won). For gift tax, enter the gift value and cumulative gifts from the same donor within 10 years for accurate aggregate taxation.
For inheritance tax, choose between lump-sum deduction (500M KRW) or individual deduction (basic 200M + personal). Spouse deduction (min 500M ~ max 3B KRW) can dramatically reduce tax. Gift tax deductions are automatically applied by relationship: spouse 600M, adult child 50M, minor child 20M KRW per 10-year period.
View taxable value, deductions, taxable base, computed tax, and final tax at a glance. The applicable tax bracket is highlighted. For inheritance tax, lump-sum vs individual deduction comparison is provided to show which is more advantageous. Filing tax credit (3%) is also applied.
When a Seoul apartment (market value 1B KRW) is inherited by a spouse and 2 children, applying lump-sum deduction (500M) + spouse deduction (500M) brings the taxable base to 0, resulting in no inheritance tax. Without a spouse, the taxable base becomes 500M KRW with approximately 80M KRW in tax. The spouse's presence creates a massive tax difference.
When a parent gifts 100M KRW to an adult child, applying the 50M KRW lineal ascendant deduction results in a 50M KRW taxable base at 10% rate = 5M KRW computed tax. After 3% filing credit, final tax is about 4.85M KRW. Gifting 50M KRW every 10 years enables tax-free wealth transfer under Korean law.
Gifting 800M KRW real estate to a spouse, with 600M KRW spouse deduction, creates a 200M KRW taxable base at 20% rate (progressive deduction 10M). Computed tax of 30M KRW minus filing credit = about 29.1M KRW. Spouse deduction is cumulative up to 600M over 10 years. Note: acquisition tax also applies to real estate gifts.
A person with 3B KRW assets gifting 50M KRW each to 3 children (150M total) pays zero gift tax as each falls within the 50M deduction. Repeating after 10 years doubles the tax-free transfer. Pre-gifting reduces the estate subject to high brackets (40-50%), potentially saving hundreds of millions in tax. Note: gifts within 10 years before death are added back to the inheritance tax base.
Gift tax exemption limits (spouse 600M, adult child 50M, minor 20M KRW) reset every 10 years under Korean law. Planned distributed gifting over time moves assets from high inheritance tax brackets (40-50%) to lower brackets, significantly reducing overall tax burden.
Inheritance spouse deduction ranges from 500M to 3B KRW. The spouse must actually inherit and the estate division must be completed within the filing deadline. Maximizing spouse deduction greatly reduces inheritance tax, but consider secondary inheritance tax when the spouse eventually passes.
Financial assets (deposits, stocks, insurance) in the estate qualify for up to 200M KRW deduction. Many people overlook this. Net financial assets under 20M get full deduction; over 100M get 20% (max 200M). Always check estate composition for this Korean tax benefit.
Filing inheritance tax within 6 months of death, or gift tax within 3 months of the gift date, earns a 3% credit on computed tax. For a 1B KRW inheritance, this saves millions. Late filing incurs penalty taxes (20%, or 40% for fraud) plus daily interest.
While market value is the principle for inheritance/gift tax, officially assessed land prices are often lower than market value. Professional appraisal can establish appropriate valuations for properties without recent transactions, potentially aiding in tax optimization.
When tax exceeds 20M KRW, installment payment (up to 5 years, 20 years for family business succession) is available. Payment in kind using real estate is also possible when cash is insufficient. Note: installment payments accrue annual interest under Korean tax law.
Inheritance tax is levied on property transferred upon death, based on the decedent's total estate. Gift tax is levied on gratuitous transfers during lifetime, based on the recipient. Both use the same Korean tax brackets but differ in deductions. Inheritance tax has broader deductions (lump-sum 500M, spouse deduction, etc.) while gift tax uses relationship-based deductions. Generally, inheritance tax has lower effective rates due to wider deductions.
Yes, gift tax deductions are calculated on a 10-year cumulative basis from the same donor (lineal ascendants are grouped together). After 10 years, the limit resets. For example, if a parent gifts 50M KRW and waits 10 years to gift another 50M, both are within the tax-free limit. Note: father and mother are grouped as the same lineal ascendant group under Korean tax law.
Gifts to heirs within 10 years before death are added to the inheritance tax base. Gifts to non-heirs within 5 years are added. Therefore, pre-gift tax planning should ideally begin at least 10 years in advance. Gift tax already paid is credited against inheritance tax (previously paid tax credit), so there is no double taxation.
Lump-sum deduction is a flat 500M KRW. Individual deduction combines basic deduction (200M) + personal deductions (children, minors, disabled, elderly). In most cases lump-sum is better, but individual can be larger with disabled heirs or multiple minor children. This calculator automatically compares both options.
Spouse inheritance deduction ranges from 500M to 3B KRW based on the amount actually inherited (within legal share). Estate division must be completed within the 6-month filing period. While maximizing spouse deduction greatly reduces tax, consider the secondary inheritance tax when the surviving spouse passes. Legal marriage registration is required.
Inheritance tax: 6 months from death. Gift tax: 3 months from the end of the month of the gift. Timely filing earns 3% credit. Late filing incurs non-filing penalty (20%, 40% for fraud) plus 0.022% daily late payment penalty. Overseas residents get 9-month inheritance tax deadline.
Beyond gift tax, real estate gifts incur acquisition tax (3.5% with exceptions), registration tax, legal fees, and appraisal costs. Total additional costs can be 7-15% of property value. If the gifted property is sold within 5 years, carryover taxation applies, increasing capital gains tax burden under Korean tax law.
Inheritance tax is levied when the assets of a deceased person are transferred to heirs, and is calculated based on the total inherited estate. Gift tax, on the other hand, is imposed when a living donor transfers assets to a recipient free of charge, and is assessed on the recipient. Both taxes use the same rate brackets (10–50%), but differ in deductions and who is liable to pay.
Inheritance and gift tax apply a 5-tier progressive rate from 10% to 50% based on the taxable base: up to 100M KRW at 10%, 100M–500M at 20%, 500M–1B at 30%, 1B–3B at 40%, and over 3B at 50%. For example, a taxable base of 300M KRW yields: 300M × 30% − 60M = 30M KRW in calculated tax.
Effective tax planning involves using gift tax exemptions through advance gifting. Up to 600M KRW per decade can be transferred to a spouse tax-free, 50M KRW to adult children, and 20M KRW to minor children. For inheritance, maximizing the lump-sum deduction (500M KRW) and spousal deduction (up to 3B KRW) significantly reduces the tax burden.