Does South Korea use progressive tax brackets?

Yes, South Korea uses a progressive income tax system where higher portions of income are taxed at higher rates. The top marginal rate is 45.0%. This means your effective (average) rate is always lower than the top bracket rate. For example, income up to 14 million KRW (around $10,200 USD) is taxed at 6%. The next bracket, from 14 million to 50 million KRW, faces a 15% rate. As your income rises, so does the marginal rate, reaching 45% for income over 1 billion KRW (approximately $730,000 USD). This progressive structure applies to both residents and non-residents, though non-residents might have a flat 20% rate on certain income types. South Korea also has a local income tax (Resident Tax) of 10% on top of your national income tax liability, effectively increasing the top rate to 49.5%. Understanding these brackets is key for anyone considering a move to South Korea, as your actual tax burden will depend heavily on your income level.