Interest Income Tax
Korea's interest income tax is 14% income tax plus 1.4% local tax, or 15.4%. The bank withholds it and deposits the rest.
Your numbers
Interest after tax
846,000
Tax
154,000
Formula
Interest after tax = Interest × (1 − Rate ÷ 100)
Once interest and dividends together pass 20M a year, the income is taxed comprehensively at a different rate.
What to enter
| Input | Default | Accepted range |
|---|---|---|
| InterestThe interest earned or owed over the period. | 1,000,000 | 0 and up |
| Rate (%)The rate applied — usually per year. | 15.4 | 0 and up |
Step by step
Quick reference table
Results when only Interest changes and everything else stays put.
| Interest | Interest after tax | Tax |
|---|---|---|
| 500,000 | 423,000 | 77,000 |
| 750,000 | 634,500 | 115,500 |
| 1,000,000 | 846,000 | 154,000 |
| 1,500,000 | 1,269,000 | 231,000 |
| 2,000,000 | 1,692,000 | 308,000 |
What each result means
| Result | At default values |
|---|---|
| Interest after taxThe interest left once tax on it is taken off. | 846,000 |
| TaxThe tax withheld or charged, as money. | 154,000 |
Common mistakes
Once interest and dividends together pass 20M a year, the income is taxed comprehensively at a different rate.
Glossary
- Interest
- The interest earned or owed over the period.
- Rate
- The rate applied — usually per year.
- Interest after tax
- The interest left once tax on it is taken off.
- Tax
- The tax withheld or charged, as money.
Frequently asked questions
Q. How is Interest Income Tax calculated?
Interest after tax = Interest × (1 − Rate ÷ 100) — Korea's interest income tax is 14% income tax plus 1.4% local tax, or 15.4%. The bank withholds it and deposits the rest.
Q. Can you walk through an example?
With Interest 1,000,000, Rate 15.4%, the answer is Interest after tax 846,000.
Q. What do I need to enter?
Enter Interest, Rate. The result recalculates as you type, and an empty box counts as zero.
Q. How much does the answer move if I change a number?
Changing only Interest moves the answer to Interest 500,000 → Interest after tax 423,000 and Interest 2,000,000 → Interest after tax 1,692,000. The table below lays out five steps.
Q. How are the numbers rounded?
Money is shown to the nearest whole unit, percentages to one decimal place and everything else to two. What you see is rounded; the calculation itself carries the unrounded value forward.
Q. Anything to watch out for?
Once interest and dividends together pass 20M a year, the income is taxed comprehensively at a different rate.
Related calculators
Tax rates and interest conventions differ by country and product — check your contract for real transactions.