Korea’s tax system offers meaningful financial benefits to married couples and families — but claiming them requires knowing what exists, what forms are involved, and how to navigate the year-end settlement (연말정산) process. This guide covers the marriage and family deductions available to residents, including foreign workers, and explains how to actually claim them.
1. The Marriage Deduction (혼인 세액공제)
Korea introduced a dedicated marriage tax credit effective from the 2024 tax year (applicable to the 2025 연말정산 and onward). The credit applies if you married in 2024 or later:
- Amount: ₩500,000 one-time tax credit per person (both spouses can claim it, so ₩1,000,000 total per couple)
- Eligibility: Must have married in the relevant tax year; applies to first marriage only (not remarriage — this may be subject to future legislative change)
- Age limit: No age restriction
- How to claim: Enter the marriage certificate information during 연말정산 (year-end settlement in January–February); HR or your tax software will process the credit
This is a tax credit (세액공제), not a deduction (소득공제) — it directly reduces your tax payable by ₩500,000, not just your taxable income.
2. Spouse Deduction (배우자 기본공제)
If your spouse has annual income below ₩1,000,000 (approximately — the threshold is ₩1,000,000 in total income, or ₩5,000,000 if employment income only), you can claim a basic deduction for them:
- Amount: ₩1,500,000 income deduction per qualifying dependent
- Condition: Spouse must be a dependent with income under the threshold — applicable if your spouse does not work or earns very little
- Foreign spouse: A foreign national spouse living with you in Korea is eligible if they meet the income threshold. A spouse living abroad is not eligible for the deduction.
3. Child Deduction and Child Tax Credit
Basic Child Deduction (자녀 기본공제)
₩1,500,000 income deduction per dependent child under age 20 (or disabled child regardless of age, and enrolled full-time college students up to age 26 in some cases).
Child Tax Credit (자녀 세액공제)
| Number of Children | Annual Tax Credit |
|---|---|
| 1 child | ₩150,000 |
| 2 children | ₩350,000 |
| 3 children | ₩650,000 (additional ₩300,000 per child from 3rd) |
Birth/Adoption Tax Credit (출산·입양 세액공제)
A one-time credit in the year a child is born or adopted:
- First child: ₩300,000
- Second child: ₩500,000
- Third or later child: ₩700,000
4. Medical Expense Deduction for Family
Medical expenses paid for yourself and your dependents (spouse, children, parents) are deductible under the medical expense credit system:
- Medical expenses exceeding 3% of total salary qualify
- Tax credit rate: 15% of qualifying medical expenses
- Disability/chronic illness/senior parents (65+): higher limits apply (₩7,000,000 vs ₩7,000,000 general cap; seniors and disabled have no cap)
- Covers Korean medical institutions and pharmacies; foreign hospital expenses generally don’t qualify
5. Education Expense Deduction for Children
Education expenses paid for dependent children qualify for a tax credit:
- Rate: 15% tax credit
- Pre-school and kindergarten: Up to ₩3,000,000 per child
- Elementary through high school: Up to ₩3,000,000 per child (school fees, certified hagwon fees, sports/arts academy fees for under-15s)
- University: Up to ₩9,000,000 per child
- International school fees: Generally not eligible (the school must be Korean-registered). This is a significant gap for expat families.
6. Housing Loan Interest Deduction
Married couples purchasing their first home in Korea can deduct mortgage interest:
- Must be head of household with no owned home (무주택 세대주)
- Property value ceiling applies (₩600,000,000 for standard deduction)
- Deductible interest up to ₩1,800,000–3,000,000/year depending on loan type
- Married foreigners with Korean permanent residence or long-term visas can qualify if they meet the residency and ownership criteria
7. The 연말정산 Process for Married Expats
연말정산 (year-end tax settlement) typically runs January–February for the previous year’s income. For married expats:
- Gather supporting documents: marriage certificate, dependent registration (가족관계증명서), children’s birth certificates
- Foreign documents must be apostilled and officially translated into Korean for submission — your HR department will specify exact requirements
- Submit via your employer’s HR system, or use the NTS Hometax (홈택스) portal directly
- A foreign spouse registered in Korea (등록외국인) appears on family relationship certificates and can be claimed automatically; a foreign spouse living abroad requires additional documentation
8. What Expats Can and Cannot Claim
| Deduction / Credit | Expat Eligible? | Notes |
|---|---|---|
| Marriage tax credit (₩500,000) | Yes | If married in 2024+; must be registered in Korea |
| Spouse basic deduction | Yes (if spouse in Korea) | Foreign spouse abroad: not eligible |
| Child deductions/credits | Yes | Child must be registered dependent in Korea |
| Medical expense credit | Yes | Korean medical expenses only |
| Education expense credit | Partial | International school fees not eligible |
| Mortgage interest deduction | Yes (conditions apply) | Long-term resident with Korean property |
Frequently Asked Questions
Q: I married a Korean citizen. Do I automatically get the marriage tax credit?
A: Not automatically — you must claim it during 연말정산 by providing your marriage certificate. Your HR department will guide the process, but you need to initiate the claim by submitting documentation.
Q: My spouse is abroad and doesn’t live in Korea. Can I claim the spouse deduction?
A: No — the Korean tax system requires the dependent to actually reside with you in Korea. A spouse living abroad doesn’t qualify for the ₩1,500,000 basic deduction.
Q: We have two children. What’s the total annual tax reduction?
A: The two-child tax credit alone is ₩350,000/year. Add the two basic deductions (₩3,000,000 income deduction × your marginal rate, typically 6–24%) and education expense credits (15% of eligible education costs up to ₩3,000,000 each). The total varies significantly by income level.
Q: Is the ₩500,000 marriage credit per person or per couple?
A: Per person — both spouses can each claim ₩500,000 if both are Korean tax residents, totaling ₩1,000,000 reduction in combined tax. If only one spouse is a Korean tax resident, only that person claims the ₩500,000.
Key Resources
- NTS Hometax (홈택스): hometax.go.kr — official portal for tax filings and 연말정산
- NTS guidance (English): nts.go.kr/english
- Source: Income Tax Act (소득세법) Articles 50–59 (basic deductions), Article 59의4 (child tax credits), Article 59의6 (marriage tax credit introduced 2024)