Tinker Tools

Freelancer Tax Calculator 3.3%

Calculate your net income after 3.3% withholding tax and estimate your actual tax liability with potential refund or additional payment at year-end filing.

ResultExpense ratio: 60%

Enter your annual gross income and expense ratio, then click Calculate Tax.

How it works

1. Enter Gross Income

Input your total annual freelance income before any deductions. This is the amount on your contracts, not what is deposited after the 3.3% withholding.

Gross Revenue

2. Set Expense Ratio

Choose the standard expense ratio for your industry or enter a custom value. This determines what portion of income is treated as business expenses for tax purposes.

Tax Deduction

3. See Refund or Payment

Compare the 3.3% withheld against your estimated actual tax to see whether you are likely to receive a refund or owe additional tax at year-end.

Year-End Estimate

What is the Korean Freelancer 3.3% Withholding Tax?

In South Korea, freelancers and independent contractors who provide services under a business income arrangement (사업소득) are subject to a 3.3% withholding tax on every payment they receive. This 3.3% consists of 3% income tax and 0.3% local income tax (which is always 10% of the income tax). The client or company paying the freelancer is legally required to withhold this amount and remit it to the National Tax Service (국세청) on behalf of the freelancer. This is not the freelancer's final tax liability — it is a prepayment mechanism designed to ensure the government collects tax revenue throughout the year rather than relying entirely on annual filing.

The actual tax a freelancer owes is determined during the annual comprehensive income tax filing (종합소득세 신고) in May of the following year. At that point, the freelancer reports all income, applies allowable business expenses (필요경비), and calculates their taxable income. The progressive income tax rates — ranging from 6% to 45% — are then applied to the taxable income. The total 3.3% withheld throughout the year is credited against the final tax bill. If the withheld amount exceeds the actual tax owed, the freelancer receives a refund. If it falls short, the freelancer must pay the difference. For many freelancers with moderate income and significant expenses, the 3.3% withholding often results in a refund.

The expense ratio (필요경비율) is a critical factor in determining a freelancer's actual tax liability. The National Tax Service assigns standard expense ratios by industry code, representing the percentage of gross income that is presumed to be business expenses. For example, a freelance writer might have a standard expense ratio of 60%, meaning only 40% of their gross income is treated as taxable. Freelancers can choose to claim actual documented expenses instead of the standard ratio if their real expenses exceed the standard. However, this requires maintaining detailed records and receipts. The calculator uses the standard expense ratio approach, which applies to the majority of freelancers who file using the simplified method.

Key Features and Benefits

  • Withholding Tax Breakdown — Separates the 3.3% withholding into its two components — 3% national income tax and 0.3% local income tax — and shows the exact amount withheld from your annual gross income. This is the starting point for understanding the gap between what is withheld and what you actually owe.
  • Net After Withholding Calculation — Shows the amount you actually receive after the 3.3% withholding is deducted. For freelancers managing cash flow throughout the year, this figure represents the real money available for living expenses and business costs before the annual tax filing settles the final balance.
  • Estimated Actual Tax Computation — Applies the selected expense ratio to your gross income, then runs the result through Korea's progressive income tax brackets to estimate your true tax liability. This reveals whether your 3.3% withholding is an overpayment or underpayment relative to your actual obligation.
  • Refund or Additional Payment Estimate — Compares the total withheld tax against the estimated actual tax to project whether you will receive a refund or owe additional tax at year-end filing. Many freelancers are surprised to learn they overpaid throughout the year and are entitled to a significant refund.
  • Customizable Expense Ratio — Choose from common standard expense ratios (60%, 70%, 80%) or enter a custom value. Different industries have different NTS-assigned ratios, and the calculator lets you match the ratio to your specific business classification code for a more accurate estimate.
  • Client-Side Privacy — All computations happen in your browser. Your income figures, expense ratios, and tax estimates are never uploaded to any server. This is particularly important for freelancers who may not want their income details exposed to third-party services.

How to Estimate Your Freelancer Tax

  1. 1

    Total Your Annual Gross Income

    Add up all payments you received (or expect to receive) as a freelancer for the tax year before the 3.3% withholding. This is the gross amount — the figure on your contracts or invoices, not the amount deposited into your bank account. If you receive payment statements (거래명세서) or withholding receipts (원천징수영수증) from your clients, the gross amount is listed there. Include all freelance income from all clients. If you also have employment income, that is handled separately under the salary income tax rules.

  2. 2

    Select Your Expense Ratio

    The standard expense ratio (단순경비율 or 기준경비율) depends on your industry classification code assigned by the NTS. Common ratios include around 60% for consulting and professional services, 70% for creative and content work, and 80% for certain technical services. Check your previous tax filing or the NTS Hometax portal for your assigned ratio. If your actual documented expenses exceed the standard ratio, you may benefit from filing with actual expenses instead — but the standard ratio is simpler and applies to most freelancers with gross income below a certain threshold.

  3. 3

    Review the Tax Calculation

    The calculator first computes the 3.3% withholding on your gross income. It then calculates your estimated taxable income by applying the expense ratio (gross income minus expenses). This taxable income is run through the progressive income tax brackets to determine your actual estimated tax liability, including the 10% local income tax surcharge. The comparison between withheld tax and estimated actual tax reveals your projected refund or additional payment amount.

  4. 4

    Understand Your Year-End Position

    If the 3.3% withheld exceeds your estimated actual tax, you will likely receive a refund when you file your comprehensive income tax return in May. If the actual tax exceeds the withheld amount, you will need to pay the difference. Use this information to plan your cash flow. Set aside money for potential additional tax payments, or anticipate the refund as part of your annual financial planning. Remember that this is an estimate — your actual filing may include additional deductions, credits, and income sources that affect the final figure.

  5. 5

    Plan for Your Annual Filing

    Korean freelancers must file their comprehensive income tax return (종합소득세 신고) between May 1 and May 31 of the year following the tax year. Gather all withholding receipts from your clients, organize your expense documentation, and consider whether the standard expense ratio or actual expense deduction is more advantageous for your situation. The Hometax (홈택스) portal provides pre-filled withholding data that you can verify against your own records. Filing accurately and on time avoids penalties and ensures you receive any refund you are owed.

Expert Tips for Freelancer Tax Management

The choice between standard expense ratio (단순경비율) and actual expense deduction can significantly affect your tax bill. Freelancers with gross income below a threshold — typically around 75 million KRW for most service industries — are eligible to use the simplified standard expense ratio. Above that threshold, you must use the basic expense ratio (기준경비율), which is much lower, and supplement it with documented actual major expenses. If your real expenses (office rent, equipment, supplies, transportation, subcontractor payments) exceed the standard ratio, switch to actual expense deduction. Keep every receipt, use a dedicated business bank account, and consider accounting software to track expenses throughout the year rather than scrambling in April.

Freelancers in Korea are not covered by the four major social insurances (4대보험) by default, but you can voluntarily enroll in National Pension and National Health Insurance. The health insurance premium for self-employed individuals is calculated differently than for employees — it considers your income, property, and vehicle ownership. Importantly, health insurance premiums you pay are tax-deductible. If you are earning enough to have a meaningful tax liability, the deduction from voluntary pension and health insurance contributions can reduce your taxable income while also providing coverage.

If you provide services to multiple clients, request withholding receipts (원천징수영수증) from each client early in the year. These documents prove how much was withheld and are essential for your annual filing. Some clients are slow to issue them. Follow up proactively, because the NTS cross-references your filing against the withholding data submitted by your clients. Discrepancies trigger audits. The Hometax portal also provides aggregated withholding data that you can use to verify completeness, usually available by mid-April.

Consider setting aside 10-15% of your gross income throughout the year for potential additional tax payments beyond the 3.3% withholding. While many freelancers with moderate income and standard expense ratios end up receiving a refund, those with higher incomes or lower actual expenses may owe additional tax. Having a tax reserve fund prevents a cash flow crisis in May. If you end up with a refund instead, that reserve becomes a bonus. This disciplined approach to tax provisioning is one of the hallmarks of successful freelance financial management in Korea.

Related Tools

Salary After Tax Calculator

Compare the tax treatment of freelance income versus employment income to evaluate whether a contract-to-employment transition makes financial sense

Tax Refund Calculator

Estimate your potential tax refund for the annual comprehensive income tax filing in May

Pension Calculator

Project pension benefits if you voluntarily enroll in the National Pension as a self-employed freelancer

Freelance income in Korea operates under a fundamentally different tax regime than salaried employment. The 3.3% withholding is just the beginning of the story — the Freelancer Tax Calculator shows you the rest. Compare your effective tax rate as a freelancer against the employment scenario using the Salary After Tax Calculator to make informed decisions about your work arrangement. The Tax Refund Calculator helps you estimate what you might get back when filing in May, and the Pension Calculator lets you project the retirement benefits available through voluntary National Pension enrollment. Together, these tools give freelancers the same level of financial visibility that salaried workers take for granted.

Frequently Asked Questions

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