Income deductions and tax credits at year-end settlement

Income deductions reduce the taxable base; tax credits reduce calculated tax. Cards, medical expenses, education, rent and donations have separate conditions.

Checked 2026-09-23 · Estimates and reference information, not legal or tax advice.

Two different mechanisms

An income deduction reduces the amount to which the progressive rate applies. A tax credit reduces the calculated tax directly. The value of an income deduction therefore depends in part on the applicable tax bracket.

Credit and debit card deductions

The eligible amount, minimum spending threshold, payment method and annual cap must be checked. Spending on excluded items does not automatically qualify just because a card was used.

Medical and education credits

Medical costs and education expenses have different eligible recipients, thresholds, percentages and evidence requirements. Check what the simplified tax service actually reports.

Rent and donation credits

Rent relief depends on residence, housing and income conditions; donations depend on the organization and receipt. Keep supporting documents and confirm the tax year’s limits.

Sources

These Korean-language sources were checked on 2026-09-23. Laws and rates may have changed; consult the originals before an important decision.