Tax Guide for Native English Teachers in South Korea
(Everything You Need to Know About Paying Taxes While Teaching English in Korea)
If you’re planning to teach English in South Korea, understanding how income tax works is an important part of preparing for life here. Whether you’re on an E-2 visa, E-7 visa, or F-series visa, foreign teachers earning income in Korea are required to pay Korean taxes. The good news? The system is simple and often results in a tax refund at the end of the year.
Do English Teachers Pay Income Tax in South Korea?
Yes. All native English teachers working legally in Korea must pay Korean income tax. Your employer normally deducts tax automatically from your paycheck each month, so you don’t need to submit monthly returns yourself. This applies whether you work in a hagwon, public school, international school, or university.
How Much Income Tax Will You Pay in Korea?
Most teachers pay around 3–5% of their salary in income tax. The amount varies depending on your total income and personal deductions.
In addition, teachers also contribute:
- National Pension — about 4.5%
- National Health Insurance — around 3.5–4%
These are not taxes, but mandatory social contributions that provide benefits while you live in Korea.
Flat Tax Option for Foreign Workers — Should You Use It?
Some foreign workers may choose a flat 19% tax rate instead of the progressive tax system. However, because English teachers usually earn moderate salaries, the progressive system is almost always cheaper.
For most teachers, the flat tax is not recommended unless advised by a tax professional.
Year-End Tax Settlement (연말정산) — How Refunds Work
Once a year (usually February or March), your employer completes a year-end tax settlement. This calculates whether you:
✔ Paid too much tax → receive a tax refund
✔ Paid too little → pay a small balance
You may be asked for documents such as:
- ARC (Alien Registration Card)
- Card spending statements
- Housing payment records(If applicable)
- Insurance or donation receipts
Many teachers receive refunds ranging from ₩100,000 to over ₩1,000,000, depending on deductible expenses.
Tax Treaties and Exemptions for English Teachers
South Korea offers a two-year income tax exemption for public school and university teachers from the United States, United Kingdom, Australia, New Zealand, and South Africa. Canadian citizens are excluded due to treaty changes, and Irish citizens are generally only eligible if employed at the university level. This exemption does not apply to private academies (hagwons), where teachers typically pay around 3.3% tax as independent contractors or a standard graduated rate as employees
Do English Teachers Need to File Taxes Themselves?
Most full-time English teachers do not need to file personal tax returns because your employer handles the entire process.
However, you may need to file separately if you:
- Worked at multiple schools
- Earned private tutoring or freelance income
- Changed jobs during the year
- Left Korea before tax settlement season
In these cases, guidance is available from the National Tax Service of Korea
Tax Rules When Leaving Korea
When your contract ends and you leave Korea:
- Your final taxes are settled by your employer
- Any tax refund may be included in your last salary
- You can also claim a National Pension refund if eligible
Be sure your employer has your correct bank details before departure.
Final Tips for English Teachers in Korea
- Keep payslips and contracts for your records
- Ask your employer about tax treaty eligibility
- Don’t panic — most tax situations are simple
- Tax refunds are common
Teaching English in Korea not only offers a rewarding cultural experience — it also comes with a straightforward tax system designed to be easy for foreign residents. With basic awareness and employer support, managing your taxes in Korea should be stress-free.