Tinker Tools

Inheritance & Gift Tax Calculator

Estimate Korean inheritance tax (상속세) and gift tax (증여세) with progressive rates from 10% to 50% and relationship-based deductions.

Tax EstimateGift Tax (증여세)

Enter the property value and relationship, then click Calculate Tax.

How it works

1. Choose Type & Relationship

Select whether you are calculating gift tax or inheritance tax, and choose the relationship between the donor and recipient. This determines the applicable deduction amount.

Two Modes

2. Enter Property Value

Input the total assessed value of the assets being transferred and any additional deductions such as debts or funeral expenses. The calculator applies deductions automatically.

Instant Estimate

3. Review Tax Breakdown

See the complete calculation: property value, deductions, taxable base, applicable bracket, quick deduction, and final tax amount with effective rate.

Full Details

What is Korean Inheritance and Gift Tax?

South Korea imposes a progressive tax on both inheritances (상속세) and gifts (증여세). The rates range from 10% on amounts up to 100 million won to 50% on amounts exceeding 3 billion won, making Korea's estate tax among the highest in the OECD. The tax applies to the total value of assets transferred, minus applicable deductions that vary based on the relationship between the giver and recipient. Understanding these rates and deductions is essential for anyone involved in estate planning or large asset transfers in Korea.

Inheritance tax applies when a person passes away and their estate is distributed to heirs. The taxable base is the total value of the deceased's assets minus debts, funeral expenses, and statutory deductions. The basic deduction for inheritance is 500 million won, and if there is a surviving spouse, an additional deduction of at least 500 million won applies. Gift tax, on the other hand, applies to transfers between living individuals. The deduction amounts depend on the relationship: spouses can receive up to 600 million won tax-free, direct descendants (children) receive a 50 million won deduction (20 million won if the recipient is a minor), and direct ascendants (parents) receive a 50 million won deduction.

The progressive rate structure uses five brackets with quick deduction amounts to simplify calculation. For the first 100 million won, the rate is 10%. The rate climbs to 20% for amounts up to 500 million won, 30% up to 1 billion won, 40% up to 3 billion won, and 50% for everything above 3 billion won. Quick deduction values (누진공제액) are applied to avoid manually calculating each bracket: 0, 10 million, 60 million, 160 million, and 460 million won respectively. This calculator handles both inheritance and gift tax scenarios with the correct deduction logic for each relationship type.

Key Features and Benefits

  • Dual Mode: Gift and Inheritance — Switch between gift tax and inheritance tax modes. Each mode applies the correct deductions and exemptions for the selected scenario, giving you accurate estimates for both lifetime transfers and estate transfers.
  • Progressive Rate Calculation — The calculator applies Korea's five-bracket progressive tax rate (10% to 50%) with the correct quick deduction amounts. See exactly which brackets your transfer falls into and how much tax applies at each level.
  • Relationship-Based Deductions — Select the relationship between donor and recipient to apply the correct tax-free deduction: 600 million for spouse, 50 million for adult children, 20 million for minor children, 50 million for parents, and 10 million for other relatives.
  • Effective Tax Rate Display — See your effective tax rate alongside the marginal rate. The effective rate shows the actual percentage of the total transfer consumed by tax, which is always lower than the top marginal rate due to the progressive structure and deductions.
  • Custom Deduction Input — Add additional deductions beyond the standard relationship-based exemptions, such as debts, funeral expenses (for inheritance), or other legally recognized deduction items. This provides a more accurate estimate of your actual tax liability.
  • Complete Privacy — All estate and gift tax calculations are performed entirely in your browser. No asset values, family information, or financial data is transmitted to any server.

How to Estimate Your Inheritance or Gift Tax

  1. 1

    Choose Transfer Type

    Select whether you are calculating gift tax (증여세) for a transfer between living individuals, or inheritance tax (상속세) for an estate transfer after death. The deduction rules and exemption amounts differ between the two types, so selecting the correct one is important for an accurate estimate.

  2. 2

    Enter the Property Value

    Input the total assessed value of the assets being transferred in Korean won. For real estate, use the publicly assessed value (공시가격) or the appraised market value, whichever is applicable. For financial assets, use the current market value. For inheritance, this should be the total value of the deceased's estate.

  3. 3

    Select the Relationship

    Choose the relationship between the donor (or deceased) and the recipient. For gifts, this determines the tax-free deduction amount. For inheritance, the basic deduction of 500 million won plus spousal deduction of 500 million won is applied when a spouse is among the heirs. The relationship selection significantly impacts the final tax amount.

  4. 4

    Add Additional Deductions

    If applicable, enter any additional deduction amounts. For inheritance, this might include the deceased's debts, funeral expenses (up to 15 million won), or other statutory deductions. For gifts, additional deductions are less common but may include certain policy-based exemptions. Enter the total additional deduction amount in KRW.

  5. 5

    Review the Tax Calculation

    The calculator displays the total property value, applicable deductions, taxable base, applicable tax rate bracket, calculated tax, and effective tax rate. Use this information for preliminary estate planning discussions with a tax advisor. Remember that this is an estimate — actual tax liability may vary based on specific circumstances, valuation methods, and additional credits or surcharges.

Expert Tips for Estate and Gift Tax Planning

Gift tax deductions reset every 10 years per donor-recipient pair. This means a parent can gift 50 million won to an adult child tax-free, wait 10 years, and gift another 50 million won tax-free. For long-term wealth transfer planning, starting early and making periodic gifts within the deduction limits can significantly reduce the total tax burden compared to a single large inheritance.

The valuation method you use for assets can dramatically affect the tax base. Real estate can be valued at the publicly assessed price (공시가격), which is typically 60-80% of market value, or at appraised market value. For inheritance tax, the NHIS generally accepts the publicly assessed value unless there is a recent comparable transaction. Consult a tax professional about which valuation method is most advantageous for your situation.

Korea imposes a 'gift tax additional tax' (할증과세) of 30% when the donor and recipient are not in a direct lineal relationship (e.g., grandparent to grandchild, skipping a generation). This surcharge is designed to prevent tax avoidance through generation-skipping transfers. If you are considering gifting directly to grandchildren, factor in this additional 30% surcharge when comparing strategies.

For large estates, the interaction between inheritance tax deductions can be complex. The basic deduction (기본공제) of 500 million won, the spousal deduction (배우자공제) of at least 500 million won (up to the legal spousal share), and the lump-sum deduction (일괄공제) of 500 million won cannot all be stacked freely. Generally, heirs choose between itemized deductions and the lump-sum deduction, selecting whichever yields a larger total. Professional tax advice is strongly recommended for estates exceeding 1 billion won.

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Frequently Asked Questions

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