Korea Earned Income Tax Credit 2026: May Application Guide for Expats — Up to KRW 3.3M
Korea’s EITC: A Direct Cash Benefit You May Be Leaving on the Table
If you work in Korea and your household income is below certain thresholds, the National Tax Service (NTS) will pay you a direct cash credit — no application fee, no complex forms, just five minutes on the Sontax app. This is 근로장려금 (Geunno Jangnyeogeum), Korea’s Earned Income Tax Credit (EITC), and the 2026 regular application window runs from May 1 to May 31, 2026.
For the 2025 tax year, maximum payouts are:
- Single household: KRW 1.65 million
- Single-income household: KRW 2.85 million
- Dual-income household: KRW 3.3 million
If you also have children under 18, the 자녀장려금 (Child Tax Credit) adds up to KRW 1 million per child.
Who Qualifies? The Three-Part Test
Part 1: Nationality
The applicant must have Korean citizenship as of December 31, 2025. Exception: a foreign national married to a Korean citizen may qualify if all other criteria are met.
Part 2: Household Income
Income is measured as combined spousal annual gross income from all sources (employment, business, rental, other).
| Household Type | Definition | Income Limit | Maximum Credit |
|---|---|---|---|
| Single household | No spouse, no dependent children (or with dependent parent 70+) | Under KRW 22M | KRW 1.65M |
| Single-income household | Spouse exists, or dependent children, but spouse income under KRW 3M/yr | Under KRW 32M | KRW 2.85M |
| Dual-income household | Both spouses have income ≥ KRW 3M/yr | Under KRW 44M | KRW 3.3M |
How the credit scales: The credit is not flat. It increases from zero to the maximum as income rises to a certain point, then phases out to zero as income approaches the limit. Use the NTS simulation tool for an accurate estimate.
Part 3: Household Assets
Total household assets as of June 1, 2025 must be:
| Asset Value | Credit Outcome |
|---|---|
| Under KRW 170 million | Full calculated credit |
| KRW 170M – under KRW 240M | 50% of calculated credit |
| KRW 240M or more | Not eligible |
Assets counted include: real estate (at official assessed price), land, buildings, bank deposits, stocks and funds, vehicles (at market value), lease (전세) deposits. Liabilities (loans) are not deducted from assets.
Who Is Automatically Excluded?
Even if income and assets qualify, these groups cannot apply:
- Foreign nationals without Korean citizenship (except spouses of Korean nationals)
- Individuals registered as dependents of another household in 2025
- Licensed professionals (doctors, lawyers, accountants, tax advisors, veterinarians, dentists, etc.)
- Salaried employees with monthly average wages of KRW 5M or more (근로장려금 only — child credit not affected by this rule)
Korea’s Child Tax Credit (자녀장려금): Up to KRW 1M Per Child
The 자녀장려금 is applied alongside 근로장려금 in the same application. Key terms:
| Item | Details |
|---|---|
| Eligible children | Dependent children under 18 as of December 31, 2025 (born on or after January 1, 2008) |
| Household income limit | Combined spousal income under KRW 70 million |
| Amount per child | Minimum KRW 500,000 — Maximum KRW 1,000,000 |
| Household type | Single-income or dual-income only (single households not eligible) |
| Asset limit | Same as 근로장려금 — under KRW 240 million |
Example: A single-income household with two children and income of KRW 25M could receive KRW 2.85M (근로장려금) + KRW 2M (2 × KRW 1M 자녀장려금) = KRW 4.85M total.
How to Apply: Four Methods
Method 1: Sontax (손택스) Mobile App — Recommended
The fastest and easiest method. Open the 손택스 app (search “손택스” on the App Store or Google Play), navigate to [장려금 신청/조회] → [근로·자녀장려금 신청], authenticate with KakaoTalk/Naver/Payco or a joint certificate, and review the pre-filled income and asset data. Tap [신청하기] to complete. Total time: approximately 5 minutes.
Method 2: Hometax (홈택스) Web
Visit www.hometax.go.kr, log in with your joint certificate (공동인증서), and go to [장려금·연말정산·전자기부금] → [근로·자녀장려금 신청]. The process is identical to the app but on a desktop browser.
Method 3: ARS Phone Application
Call 1544-9944 and follow the automated instructions. You will need to enter your Resident Registration Number and bank account number. Suitable only for straightforward cases.
Method 4: In-Person at Tax Office or Community Center
Visit your local tax office (세무서) or community service center (읍면동 주민센터) with your ID. Staff will help you complete a paper application. This is the best option for elderly applicants or those without smartphones.
Application and Payment Timeline
| Event | Date |
|---|---|
| Regular application period opens | May 1, 2026 |
| Regular application deadline | May 31, 2026 |
| NTS review period | June – August 2026 |
| Payment — regular applications | By end of September 2026 |
| Late application window | June 1 – November 30, 2026 |
| Late application credit amount | 95% of standard amount |
| Late application payment | Within 4 months of submission date |
Pre-Application Checklist
Before applying, confirm the following:
- You have Korean citizenship (or are a foreign national married to a Korean)
- Your household type is correctly determined (single / single-income / dual-income)
- Combined 2025 household income is within your household type’s limit
- Total household assets as of June 1, 2025 are under KRW 240 million
- You are not a licensed professional (doctor, lawyer, accountant, etc.)
- Your dependent children’s details are correct for 자녀장려금 claim
- Your bank account registered on Hometax is correct and active
- Only one spouse is applying (not both)
Common Mistakes to Avoid
Mistake 1: Both spouses applying independently 근로장려금 is a household benefit. Only one application per household is processed. Double applications result in one being canceled.
Mistake 2: Wrong bank account If your payment account is incorrect, the transfer fails and the re-processing can take months. Verify your account in Hometax before submitting.
Mistake 3: Forgetting to include lease deposit in assets A 전세 (lease) deposit counts as an asset. A KRW 200M lease deposit alone puts you at the 50% payout threshold (KRW 170M–240M range).
Mistake 4: Assuming low income means zero credit Income that is very low (near zero) can also result in a reduced credit. The credit peaks at mid-range income and phases in from zero at the bottom.
Two Practical Scenarios
Scenario 1: Single Delivery Worker
Joon is 28, single, no children. He earned KRW 16M in 2025 as a platform delivery worker (근로소득). His assets are a motorcycle (KRW 5M market value) and KRW 8M in savings: total KRW 13M. Household type: single. Income under KRW 22M. Assets under KRW 170M. → Fully eligible. Expected credit: approximately KRW 130M–160M depending on exact income bracket. Apply via Sontax in May.
Scenario 2: Dual-Income Couple with Two Children
Mirae earns KRW 22M, her husband KRW 18M — combined KRW 40M. Two children aged 8 and 11. Household assets: apartment (official price KRW 130M) + savings KRW 15M = KRW 145M. Household type: dual-income (both earn over KRW 3M/yr). Income: KRW 40M < KRW 44M limit. Assets: KRW 145M < KRW 170M → full credit. → Eligible for 근로장려금 (amount depends on income bracket within KRW 40M range) + 자녀장려금 up to KRW 2M (2 × KRW 1M). Apply in May; payment by end of September 2026.
Official Channels
| Channel | Access |
|---|---|
| Sontax app (mobile) | Search “손택스” on App Store / Google Play |
| Hometax (web) | www.hometax.go.kr |
| ARS phone | 1544-9944 |
| NTS counseling | 126 (weekdays 9am–6pm, Korea) |
| NTS official | www.nts.go.kr |
Related Reading
- Korea Comprehensive Income Tax May 2026 Filing Guide
- After Quitting Your Job in Korea — 2026 Checklist
- Freelancer Tax Saving Strategies in Korea 2026
- Tax-Efficient Dividend Investing 2026
- 4th Generation Health Insurance Switch 2026
Five minutes on the Sontax app in May could put up to KRW 3.3M (plus up to KRW 1M per child) directly into your bank account by September. Check your eligibility today — the NTS already has your income data and the form is pre-filled. The only thing left is to tap [신청하기].
What is Korea's 근로장려금 (Geunno Jangnyeogeum)?
It is Korea's Earned Income Tax Credit (EITC) — a refundable government benefit paid to low- and middle-income workers and self-employed individuals. Unlike a tax deduction, it is a direct cash payment from the National Tax Service (NTS), separate from and in addition to any tax refund.
When is the 2026 application deadline for 근로장려금?
The regular application period is May 1–31, 2026. After that, a late application window is open until November 30, 2026, but late applicants receive only 95% of the standard amount.
Can foreigners living in Korea apply for 근로장려금?
Generally, no. Applicants must be Korean nationals. However, a foreigner married to a Korean citizen may qualify if all other income and asset criteria are met and they were resident in Korea on December 31, 2025.
What are the income limits for each household type?
For the 2025 tax year: Single household — under KRW 22 million (max KRW 1.65M payout); Single-income household — under KRW 32 million (max KRW 2.85M); Dual-income household — under KRW 44 million (max KRW 3.3M). These are combined spousal income figures.
What is the asset limit for qualifying?
Total household assets as of June 1, 2025 must be under KRW 240 million (approximately USD 175,000 at current rates). Assets include real estate (official price), deposits, stocks, vehicles, and lease deposits. If assets are KRW 170M–240M, only 50% of the calculated amount is paid.
What is the 자녀장려금 (Child Tax Credit) and how much is it?
자녀장려금 is Korea's Child Tax Credit — a separate cash benefit for households with dependent children under 18 (as of December 31, 2025). The NTS pays up to KRW 1 million per child (minimum KRW 500,000), with combined household income under KRW 70 million. It is claimed alongside 근로장려금 in the same application.
How do I apply on Hometax?
Go to www.hometax.go.kr → [장려금·연말정산·전자기부금] → [근로·자녀장려금 신청]. Log in with your joint certificate (공동인증서). Income and asset data are pre-populated by the NTS — you review and submit. The process takes about 5 minutes.
When will I receive the payment?
Regular applications submitted May 1–31 are processed and paid by the end of September 2026. Late applications (June–November 30) are paid within 4 months of the application date.
What happens if I miss the May 31 deadline?
You can still apply by November 30, 2026, but you'll receive only 95% of the calculated amount. The 5% reduction is the penalty for late application.
Are professional self-employed individuals excluded?
Yes. Licensed professionals — doctors, dentists, lawyers, accountants, tax advisors, real estate appraisers, and similar — are explicitly excluded from 근로장려금 regardless of income level.
If both spouses work, who submits the application?
Only one spouse submits. The credit is a household benefit. If both apply, the NTS cancels one and processes only the qualifying application. Typically the higher-earning spouse or the spouse whose income triggers eligibility should apply — but in practice either can submit.
How do I check my expected credit amount before applying?
Use the 손택스 (Sontax) mobile app or Hometax simulation tool: on Hometax go to [장려금 신청] → [미리보기/모의계산] to see an estimate based on your income and asset data on file with the NTS.
관련 글
Section 121 Home Sale Tax Exclusion 2026: The $250k/$500k Capital Gains Exemption Explained
Korean Capital Gains Tax for Foreign Property Owners 2026: What the Surcharge Reinstatement Means for You
Korea Comprehensive Income Tax 2026: Expat Filing Guide — May Deadline, Residency Rules & Double-Tax Treaties
Korea Auto Tax: June Installment Application Closes in May — What You Need to Know
Korea Global Income Tax: Last-Minute Deduction Checklist Before the May 31 Deadline
