Korea income tax for foreigners follows the same progressive bracket system as Korean nationals — with one important exception: the 19% flat tax option available to foreign employees. Whether you’re on an E-7 visa, working at a chaebol, or employed by an MNC in Seoul, understanding exactly how Korean income tax is calculated will help you avoid financial surprises and plan your finances accurately.
| Quick Answer | |
|---|---|
| Income tax rates (2026) | 6% – 45% (8 brackets) |
| Effective rate for most foreign workers | 8% – 18% after deductions |
| Flat tax option for foreigners | 19% on gross income (no deductions) |
| Local income tax (add-on) | +10% of income tax amount |
| Social insurance (employee share) | ~9.1% of salary |
| Total deduction for ₩5M/month earner | Approx. ₩700,000–850,000/month |
Moving to Korea or already living here? Understanding how Korean income tax actually works — including which bracket you fall into, how social insurance is calculated, and what your real monthly take-home pay looks like — can save you from serious financial surprises. This complete 2026 guide covers everything a foreign resident or expat employee needs to know, based on official data from the National Tax Service of Korea.
1. Who Pays What: Resident vs Non-Resident at a Glance
Korea’s tax system treats residents and non-residents very differently. The first thing you need to determine is your residency status, because it changes both what income is taxable and which deductions you can claim.
Definition
Under the Korean Income Tax Act, a resident is any individual who has had a domicile or place of residence in Korea for 183 days or more. A non-resident is anyone who does not meet that threshold.
A domicile is determined by objective facts — family living together in Korea, property in Korea, and occupation. If your job requires you to reside in Korea for 183+ days, or your family is in Korea and your occupation makes it likely you will stay 183+ days, you are deemed to have a Korean domicile.
Residency vs Non-Residency Comparison
| Item | Foreign Resident (183+ days) | Foreign Non-Resident (<183 days) |
|---|---|---|
| Taxable income scope | Worldwide income | Korean-source income only |
| Foreign-source income (first 5 years) | Only income paid in Korea or remitted to Korea | Not taxed |
| Basic personal deduction | Self + spouse + dependents | Self only |
| Special income deductions (health/employment insurance) | Yes | No |
| Special tax credits (medical, education, insurance) | Yes | No |
| Child tax credit | Yes | No |
| Standard tax credit (₩130,000) | Yes | No |
| 19% flat tax option | Yes | Yes |
Key rule for new arrivals: If you are a foreign resident who has lived in Korea for five years or less (calculated by looking back 10 years from the last day of the taxable period), only the foreign-source income that is paid in Korea or remitted to Korea is subject to Korean tax. This is a significant benefit for expats in their first five years.
2. 2026 Tax Brackets Explained
Korea uses a progressive tax system. The rates below apply to your taxable income (tax base) — not your gross salary. Your gross salary goes through several layers of deduction before reaching the tax base. These rates are confirmed by the National Tax Service of Korea (국세청).
| Tax Base (Taxable Income) | Marginal Rate | Tax Calculation Formula |
|---|---|---|
| Up to ₩14,000,000 | 6% | Tax base × 6% |
| ₩14M – ₩50,000,000 | 15% | ₩840,000 + 15% of amount over ₩14M |
| ₩50M – ₩88,000,000 | 24% | ₩6,240,000 + 24% of amount over ₩50M |
| ₩88M – ₩150,000,000 | 35% | ₩15,360,000 + 35% of amount over ₩88M |
| ₩150M – ₩300,000,000 | 38% | ₩37,060,000 + 38% of amount over ₩150M |
| ₩300M – ₩500,000,000 | 40% | ₩94,060,000 + 40% of amount over ₩300M |
| ₩500M – ₩1,000,000,000 | 42% | ₩174,060,000 + 42% of amount over ₩500M |
| Over ₩1,000,000,000 | 45% | ₩384,060,000 + 45% of amount over ₩1B |
Local income tax (지방소득세): An additional 10% of your income tax is levied as local income tax. This is not a separate bracket — it is simply 10% of whatever your income tax bill is. So if your income tax is ₩5,000,000, your local tax is ₩500,000, making the effective top combined rate up to 49.5%.
Source: National Tax Service (국세청), Korean Income Tax Act (소득세법), 2026
How the Tax Base Is Calculated (Simplified)
- Annual salary minus non-taxable items (meal allowance up to ₩200,000/month, commute subsidy up to ₩200,000/month, childcare allowance up to ₩200,000/month for children aged 6 or under, overseas assignment allowance up to ₩1,000,000/month, etc.)
- = Gross wage & salary income
- Minus earned income deduction (see table below)
- = Adjusted wage & salary income
- Minus personal deductions, pension contribution deductions, social insurance premiums, and other deductions
- = Tax base
- Apply bracket rates → Calculate tax
- Minus tax credits (wage & salary income credit, child credit, etc.)
- = Final income tax
Earned Income Deduction Table
This deduction significantly reduces the effective tax rate on wage and salary income. It applies to all employees automatically.
| Gross Wage & Salary Bracket | Deduction Amount |
|---|---|
| Up to ₩5,000,000 | 70% of gross wage |
| ₩5M – ₩15,000,000 | ₩3,500,000 + 40% of amount over ₩5M |
| ₩15M – ₩45,000,000 | ₩7,500,000 + 15% of amount over ₩15M |
| ₩45M – ₩100,000,000 | ₩12,000,000 + 5% of amount over ₩45M |
| Over ₩100,000,000 | ₩14,750,000 + 2% of amount over ₩100M (maximum ₩20,000,000) |
Source: Korean Income Tax Act (소득세법) Article 47, National Tax Service (국세청), 2026
Tax Calculation Example
For a taxable income (tax base) of ₩20,000,000:
₩840,000 + (₩20,000,000 – ₩14,000,000) × 15% = ₩840,000 + ₩900,000 = ₩1,740,000
(Source: National Tax Service official calculation example)
3. The 4 Social Insurance Deductions (Official 2026 Rates)
Before income tax is calculated, your employer deducts social insurance premiums each month. These are mandatory for all regular employees. The following are the official 2026 rates from the Korea Social Insurance system.
| Insurance Type | Employee Share | Employer Share | Total Rate |
|---|---|---|---|
| National Pension (국민연금) | 4.75% | 4.75% | 9.5% |
| National Health Insurance (건강보험) | 3.595% | 3.595% | 7.19% |
| Long-Term Care Insurance (장기요양보험) | 0.4724% | 0.4724% | 0.9448% |
| Employment Insurance (고용보험) | 0.9% | 0.9% + stability fund* | 1.8%+ |
| Industrial Accident Insurance (산재보험) | 0% (employee) | Varies by industry | Employer only |
| Employee Total | ~9.7% | ~10.6% | ~20.3% combined |
* Employment insurance stability fund varies by company size: 0.25% for companies with under 150 employees; 0.45% for 150+ employees (priority support companies); 0.65% for 150–999 employees; 0.85% for 1,000+ employees and government entities.
Source: National Health Insurance Service (국민건강보험공단) / National Pension Service (국민연금공단) / Ministry of Employment and Labor (고용노동부), 2026 Social Insurance Rate Table
What Each Insurance Covers
- National Pension (국민연금): Retirement pension. Contributions may be refundable as a lump sum when foreign nationals permanently depart Korea, subject to your country’s social security agreement with Korea.
- National Health Insurance (건강보험, NHIS): Covers approximately 60–80% of medical expenses at Korean hospitals and clinics. Low co-pays make Korean healthcare very affordable compared to most English-speaking countries.
- Long-Term Care Insurance (장기요양보험): A supplement to NHIS for elderly care services. Automatically bundled with health insurance premiums and cannot be separated.
- Employment Insurance (고용보험): Provides unemployment benefits and job training support if you are laid off. Foreign nationals on certain visa types may be eligible for benefits.
4. Real Take-Home Pay by Salary Level
The following estimates are approximate and assume a single, childless foreign resident employee with no additional deductions beyond the standard earned income deduction and a ₩1,500,000 basic personal deduction for self. Actual figures will vary. These are provided for planning purposes only — consult a tax professional for a precise calculation.
| Annual Salary | Social Insurance (~9.7%) | Approx. Income Tax + Local Tax | Estimated Annual Take-Home | Estimated Monthly Take-Home |
|---|---|---|---|---|
| ₩40,000,000 | ~₩3,880,000 | ~₩1,100,000 | ~₩35,020,000 | ~₩2,919,000 |
| ₩60,000,000 | ~₩5,820,000 | ~₩3,800,000 | ~₩50,380,000 | ~₩4,198,000 |
| ₩100,000,000 | ~₩9,700,000 | ~₩12,500,000 | ~₩77,800,000 | ~₩6,483,000 |
| ₩150,000,000 | ~₩9,700,000 (capped) | ~₩28,000,000 | ~₩112,300,000 | ~₩9,358,000 |
Note: National Pension contributions are capped at a maximum monthly standard income set by the NPS each year. The social insurance figure for higher salaries reflects this cap. Income tax estimates include the 10% local income tax surcharge. Figures are rounded estimates.
Source: National Tax Service (국세청), 2026; National Health Insurance Service (국민건강보험공단), 2026 rates
5. The 19% Flat Tax Option: Who Qualifies?
This is one of the most valuable — and most misunderstood — tax options for foreign workers in Korea.
What Is It?
Under Article 18-2 of the Restriction of Special Taxation Act, a foreign employee can elect to pay a flat 19% income tax rate on their wage and salary income, instead of using the progressive 6–45% bracket system.
Key Rules (Confirmed by 2025 Foreign Year-End Tax Settlement Manual)
- Who qualifies: Any foreign employee providing services in Korea — unless the service is provided to a specially related company (a company with a controlling relationship to your foreign employer).
- Time limit: You can use the flat rate for taxable periods ending within 20 years from the date you first started providing services in Korea.
- Trade-off: If you elect the flat rate, you cannot apply any non-taxation benefits, income deductions, tax reductions/exemptions, or tax credits. The 19% applies to your gross wage and salary income with no reductions whatsoever.
- Local income tax still applies: The 10% local income tax surcharge still applies on top of the 19%, making the effective combined rate 20.9%.
When the Flat Rate Helps vs. When It Does Not
| Annual Salary | Progressive Rate (Approx. Income Tax) | 19% Flat Rate (Income Tax) | Better Option |
|---|---|---|---|
| ₩40,000,000 | ~₩1,100,000 | ~₩7,600,000 | Progressive (much lower) |
| ₩60,000,000 | ~₩3,800,000 | ~₩11,400,000 | Progressive |
| ₩100,000,000 | ~₩12,500,000 | ~₩19,000,000 | Progressive |
| ₩150,000,000 | ~₩28,000,000 | ~₩28,500,000 | Approximately break-even (~₩147M breakeven) |
| ₩200,000,000 | ~₩47,000,000 | ~₩38,000,000 | Flat Rate (saves ~₩9M) |
Practical conclusion: For most expats earning under approximately ₩150,000,000 per year, the progressive system is significantly better. The flat rate becomes advantageous only at very high income levels. Always calculate both scenarios before choosing — consult a tax professional for exact figures based on your deductions.
How to apply: Attach the “Application for Flat Tax Rate for Foreign Employees” to your year-end tax settlement report and submit to your employer (withholding agent).
6. Year-End Tax Settlement (연말정산): Key Deductions for Expats
Year-end tax settlement (연말정산, Yeon-mal-jeong-san) is Korea’s annual process of reconciling your actual income tax liability against the amounts withheld monthly from your paycheck throughout the year. It takes place in January–February each year for the preceding calendar year.
- If too much was withheld: you receive a refund paid with your February salary.
- If too little was withheld: you pay the shortfall, which is deducted from your February salary.
Deductions and Credits Available to Resident Foreign Employees
1. Basic Personal Deduction (인적공제)
- ₩1,500,000 per person for yourself, your spouse, and qualifying dependents (dependents must have annual income of ₩1,000,000 or less).
- Non-residents: basic deduction for self only.
- Additional deduction for dependents aged 70 or older: ₩1,000,000; for the disabled: ₩2,000,000; single-parent: ₩1,000,000.
2. Social Insurance Premium Deduction
- 100% of national health insurance premiums and employment insurance premiums paid are deductible from income. This is handled automatically by your employer and appears on your withholding receipt. Non-residents cannot claim this deduction.
3. Pension Account Tax Credit
- Contributions to a Korean individual retirement pension (IRP) or pension savings account receive a tax credit of 12% of the contributed amount — or 15% if your total income is ₩45,000,000 or less (or gross wage ₩55,000,000 or less).
- Annual contribution ceiling: ₩6,000,000 (₩9,000,000 if including retirement pension contributions).
- Source: Korean Income Tax Act (소득세법) Article 59-3, National Tax Service (국세청), 2026
4. Medical Expense Tax Credit
- 15% tax credit on qualifying medical expenses exceeding 3% of your gross wage and salary income.
- Annual ceiling: ₩7,000,000 for expenses on behalf of ordinary dependents. No ceiling for expenses for the disabled or those aged 65 or older.
5. Educational Expense Tax Credit
- 15% tax credit on qualifying tuition paid for preschool, elementary, middle school, high school, or university education for qualifying dependents.
6. Standard Tax Credit (표준세액공제)
- If you do not claim special income deductions or special tax credits, a flat ₩130,000 tax credit is applied automatically per year. Most expats without large medical or education expenses will receive this default credit.
7. Wage and Salary Income Tax Credit
- 55% of calculated tax if calculated tax is ₩1,300,000 or less; otherwise ₩715,000 + 30% of the excess. A ceiling applies based on gross wage level (maximum ₩740,000 for income up to ₩33M; reduced at higher incomes).
8. Child Tax Credit (2025 Expanded Rates)
- For resident taxpayers with qualifying children aged 8 or older:
- 1st child: ₩250,000/year | 2nd child: ₩300,000/year (total ₩550,000) | 3rd+ child: ₩400,000/year per child
- For newborn/adopted children: ₩300,000 for 1st, ₩500,000 for 2nd, ₩700,000 for 3rd and beyond.
- Source: Korean Income Tax Act (소득세법) Article 59-2, National Tax Service (국세청), 2025 Year-End Tax Settlement Manual for Foreigners
7. Tax Treaties: Does Your Country Have One?
Korea has tax treaties with over 90 countries as of 2025. These treaties are designed to prevent double taxation — being taxed by both Korea and your home country on the same income.
Source: National Tax Service (국세청), Tax Treaty List, 2025
What Tax Treaties Can Do For You
- Prevent double taxation: If you pay Korean income tax, your home country may grant you a foreign tax credit, so you are not taxed twice on the same income.
- Teacher and professor exemption: Many treaties include a clause that exempts teaching income from Korean tax for a limited period (often two years). Exemption clauses differ by country — check your specific treaty.
- Reduced withholding on passive income: Dividends, interest, and royalties received from Korean sources may be subject to reduced withholding rates under a treaty.
- Foreign engineer and dispatched employee provisions: Where a foreigner is dispatched to Korea and their pay is borne by a foreign government or foreign employer, treaty provisions may reduce Korean income tax on that income.
Selected Countries With Tax Treaties With Korea
USA, UK, Australia, Canada, Germany, France, Japan, China, Singapore, India, Netherlands, Sweden, New Zealand, Ireland, and 75+ more countries. Consult the National Tax Service (NTS) website at www.nts.go.kr for the complete and current treaty list.
How to Claim Treaty Benefits
Submit Form 29-2 (Application for Non-taxation/Exemption of Income Tax According to Tax Treaty — Enforcement Rules of the Income Tax Act, Attached Form 29-2(3)) together with a certificate of residence issued by your home country government. Submit three copies to your employer (school or company). Your employer forwards two copies to the jurisdictional tax office by the 9th day of the month following the income payment month.
8. NHIS True-Up: The Bill Many Expats Did Not Expect
This catches many foreign workers off guard. Korea’s National Health Insurance Service (NHIS) conducts an annual income reconciliation (보험료 정산). Understanding it can prevent an unpleasant surprise in spring.
How It Works
Throughout the year, your monthly NHIS premium is based on the salary your employer reported when you enrolled (or at the beginning of the year). At year-end, the NHIS compares your actual annual income to what your premiums were based on. If there is a gap — due to a raise, a bonus, a promotion, or secondary income — the NHIS issues a retroactive premium adjustment.
When Does the True-Up Hit?
The NHIS reconciliation typically occurs in April–May of the year following the income year. The adjusted amount usually appears as a line item on your May paycheck or as a separate bill from NHIS.
Who Gets Hit the Hardest
- Employees who received a mid-year salary increase
- Employees who received a large year-end or performance bonus
- Employees with multiple income sources (e.g., freelance work alongside full-time employment)
- New hires whose reported salary differed from their actual total compensation
Practical Planning Tip
If your salary increased significantly during the year, set aside approximately 4.07% (3.595% + 0.4724%) of the total salary increase as a buffer for the April–May true-up. If you are planning to send money home before spring, account for this potential bill first.
For sending money back to your home country efficiently, many expats in Korea use Wise, which transfers at the mid-market exchange rate with transparent, low fees — one of the most cost-effective ways to repatriate Korean won to dollars, pounds, or other currencies.
9. How to File: Step-by-Step for First-Timers
Most Korean employees with only wage and salary income do not need to file a separate tax return — your employer handles the year-end settlement on your behalf. However, if you have additional income, you may need to file a global income tax return (종합소득세 신고) in May.
For Standard Employees (Wage and Salary Income Only)
- October–November (of the income year): Gather supporting documents for any deductions — family relationship certificates for dependents, medical receipts, education tuition receipts, insurance premium certificates.
- January (the following year): Submit your “Report of Income Deduction and Tax Credit” to your employer’s HR or payroll department. Include any applicable flat-tax-rate application forms.
- February: Your employer completes year-end settlement. Any refund or additional tax appears on your February paycheck.
- By end of February: Your employer issues a “Receipt for Wage and Salary Income Tax Withholding” (근로소득 원천징수영수증). Keep this document — it is your official proof of Korean income tax paid, and you will need it if your home country requires proof for foreign tax credit claims.
- No further action required if wage and salary is your only income source.
For Expats With Additional Income (Freelance, Rental, Investment)
- May 1–31 of the following year: File a global income tax return (종합소득세) via the NTS Hometax website (홈택스, www.hometax.go.kr). An English interface is available, though it is limited. Alternatively, visit your local tax office (세무서) in person.
- Many expats find the full filing process complex, especially with foreign income or multiple sources. Consider engaging a bilingual tax accountant for your first filing — see Ian Labor Law Firm for recommended services.
- All tax balances due must be paid by May 31 to avoid penalties.
Year-End Settlement Using Simplified Online Service
The NTS offers a Simplified Year-End Tax Settlement Service that pre-populates your data. Access it via Hometax using your Alien Registration Card (ARC) number and a Korean mobile phone for verification. If you do not have Korean mobile verification, contact your employer’s HR team to submit documents manually.
Contact and Resources
- NTS Hometax (English available): www.hometax.go.kr
- NTS English Hotline: 1588-0560
- NTS General Inquiry (Korean): 126 (weekdays 9:00–18:00)
- NHIS English helpline: 1577-1000
- National Pension Service: 1355
10. Frequently Asked Questions
Q1: I just arrived in Korea. Am I a resident for tax purposes right away?
Not immediately. You become a tax resident once you have been in Korea for 183 days within a taxable year (January 1 – December 31). Before reaching 183 days, only Korean-source income is subject to Korean tax.
Q2: Can I get my National Pension contributions back when I leave Korea?
In most cases, yes. Foreign nationals whose home countries have not signed a totalization agreement with Korea — or those who opt for a refund even if an agreement exists — can apply for a lump-sum return of contributions after permanently departing Korea. Contact the National Pension Service (NPS) for your specific eligibility before departure.
Q3: My company pays my Korean tax on my behalf (tax equalization). Do I still need to file?
If your company handles your year-end settlement and wage and salary is your only income, you do not file separately. However, if your company grosses up your compensation to cover taxes, the grossed-up amount may itself be taxable income — consult your company’s tax manager or a tax professional.
Q4: What is the difference between income tax and local income tax?
Local income tax (지방소득세) is an additional 10% of your income tax that goes to the municipal government. It is automatically calculated and withheld together with income tax. You do not file a separate return for this in most cases.
Q5: Do I pay into all four social insurances from day one of employment?
Generally yes, for standard employment contracts. Some foreign visa types may have partial exemptions — for example, holders of certain investor or researcher visas may be exempt from National Pension if their home country has a social security agreement with Korea. Confirm with your employer’s HR team at onboarding.
Q6: My company gave me stock options. How are they taxed?
Stock option exercise gains (주식매수선택권 행사이익) are treated as wage and salary income and are taxed in the year you exercise the options. This can create a significant, unexpected income tax and NHIS liability in the exercise year. Plan the timing of exercise carefully with a tax professional.
Q7: I am on an E-7 visa (specific activities). Do the same tax rules apply?
Yes. Korean income tax obligations are based on your days present in Korea and the source of your income, not your visa type. All standard income tax and social insurance rules apply equally regardless of visa category.
Q8: How does the foreign engineer 50% income tax reduction work?
Under Article 18 of the Restriction of Special Taxation Act, qualified foreign engineers can receive a 50% reduction on income tax for up to 10 years from their first day of service in Korea, provided their first service date in Korea is on or before December 31, 2026. Engineers in the materials, components, and equipment industries who started on or before December 31, 2022 receive a 70% reduction for the first 3 years. To qualify, you must hold a relevant engineering degree and meet work experience requirements (e.g., 5+ years at an overseas R&D facility). Apply through your employer to the jurisdictional tax office.
Q9: Can I claim my Korean health insurance premiums as an income deduction?
Yes — but only if you are a tax resident. NHIS premiums and employment insurance premiums are 100% deductible as a special income deduction from your taxable income. This applies to both the employee and any dependent family members enrolled under your NHIS. Non-residents cannot claim this deduction.
Q10: What if I forget to submit year-end tax settlement documents to my employer?
If you miss the January submission deadline, you may still amend your settlement by filing a global income tax return in May. In some cases, you can also file an amended return (경정청구) within 5 years to claim a refund for missed deductions.
Q11: Are bonuses taxed differently from regular salary?
Bonuses are treated as regular wage and salary income. They are included in your total annual income for income tax bracket calculation, social insurance premium base, and NHIS annual true-up. A large performance bonus can push you into a higher effective tax bracket and trigger a larger NHIS April adjustment.
Q12: I have income from both a Korean employer and freelance work. What do I do?
You must file a global income tax return (종합소득세 신고) in May, combining all income sources. Your employer handles the wage and salary portion through year-end settlement, but you separately report and pay tax on other income. Maintaining clear records of all income and related expenses throughout the year is essential.
Q13: Where can I find an English-speaking tax accountant in Korea?
Several accounting firms in Seoul — particularly in Gangnam, Itaewon, Yongsan, and Mapo districts — specialize in expat tax services. Fees typically range from ₩100,000 to ₩500,000 for year-end settlement assistance, and more for complex cross-border cases. See Ian Labor Law Firm for recommended bilingual tax professionals.
Q14: What is the K-Tech Pass and who qualifies for its tax benefits?
Introduced under the 2025 tax law revisions, the K-Tech Pass provides a 50% income tax reduction for highly skilled foreign professionals in four key advanced industries: semiconductors, displays, secondary batteries, and biosciences. Qualifying criteria: a Top-Tier visa, a master’s or doctoral degree from a World Top-100 university (or 8+ years’ experience including 3+ years at a World Top-500 company), and annual earned income of approximately ₩150,000,000 or more (approximately 3x Korea’s GNI per capita). This benefit was expanded in 2025 tax law revisions.
Disclaimer
This article is for general informational purposes only and reflects tax rules and rates as of early 2026, based on data from the National Tax Service of Korea (국세청), the 2025 Year-End Tax Settlement Manual for Foreigners (NTS), and the 2026 Social Insurance Rate Table. Tax laws are revised annually. This article does not constitute legal or tax advice. For your specific situation — especially if you have foreign-source income, multiple employers, complex deductions, or are considering the flat tax election — consult a qualified Korean tax professional.
Frequently Asked Questions
What is Korea’s income tax rate for foreigners in 2026?
Foreign workers in Korea pay income tax at the same progressive rates as Korean nationals: 6% to 45% depending on taxable income. However, foreign employees have the option to elect a flat 19% income tax rate (20.9% including local income tax) on gross salary, with no deductions applied. This flat rate generally benefits those earning above approximately ₩100,000,000 annually.
Do foreigners have to pay income tax in Korea?
Yes. Any foreign national earning income sourced from Korea is subject to Korean income tax, regardless of visa type. Tax residents (183+ days per year) are taxed on worldwide income; non-residents are taxed only on Korea-sourced income at a 20% withholding rate on most types of income.
What are South Korea’s income tax brackets in 2026?
Korea has eight income tax brackets in 2026: 6%, 15%, 24%, 35%, 38%, 40%, 42%, and 45%. These apply to taxable income (after earned income deduction and personal deductions), not gross salary. Most salaried workers fall into the 6%–24% effective rate range.