Inheritance & Gift Tax Calculator
Estimate inheritance or gift tax by subtracting deductions and applying progressive rates.
Basic deductions only. Spouse deduction etc. are separate — confirm exact tax at Hometax.
The formula behind the number
Inheritance and gift tax both start from a taxable base and then apply the same progressive rate table. For a gift, the base is the gift amount minus the gift deduction for that relationship. For an inheritance, the base is the estate value minus the deductions the heirs qualify for. The rates are 10% on the portion up to 100M won, 20% up to 500M, 30% up to 1B, 40% up to 3B, and 50% above 3B. They are applied marginally, meaning only the slice of the base that sits inside each band is taxed at that band's rate. Filing on time earns a 3% credit on the computed tax, which this tool subtracts to show the estimated amount payable.
Gift deductions over a rolling 10-year window
- From a spouse: 600M won.
- From a parent to an adult lineal descendant (e.g., an adult child): 50M won; to a minor child: 20M won.
- From other relatives within the 6th degree: 10M won.
- The deduction is a cumulative 10-year total per donor relationship, not a per-gift allowance: several gifts from the same person inside 10 years are added together and measured against the one limit.
- Once the limit is used up, further gifts from that same person within the window are taxed from the first won.
A worked example with numbers
Suppose an adult child receives a 300M won gift from a parent. The adult-child deduction of 50M leaves a taxable base of 250M. Applying the brackets marginally, the first 100M is taxed at 10% (10M won) and the remaining 150M sits in the 20% band (30M won), for 40M won of computed tax. Filing on time gives a 3% credit of 1.2M won, so the estimated amount payable is about 38.8M won. For a different case, if a spouse gifts 800M won to a spouse, the 600M spouse deduction leaves 200M: 10M at 10% plus 20M at 20% is 30M won of tax, less a 0.9M filing credit, for roughly 29.1M won payable.
When and how to use it
- Planning a gift to a child or spouse: check whether the amount fits inside the 10-year deduction, and see the tax on any excess before you actually transfer.
- Estimating inheritance tax after a death: get a rough figure to judge whether professional help or an installment arrangement is worth setting up.
- Comparing gift now versus inheritance later: because both share the same rate table but use different deductions, a quick estimate of each side helps you see which route is lighter for your situation.
Common mistakes and misconceptions
- Treating the deduction as per-gift. It is a shared 10-year limit, so splitting one large gift into several transfers within the window does not create new allowance.
- Forgetting who pays. For a gift in Korea, the person receiving it is generally the one who files and pays, not the giver.
- Assuming the headline rate applies to the whole amount. Rates are marginal, so a 250M base is not taxed entirely at 20%.
- Expecting the simple result to be final for an inheritance. Estates often qualify for a spouse deduction, a financial-asset deduction and others that can change the number substantially.
Limits and verification
This calculator uses the basic deductions and the standard rate table only. It does not model the full set of inheritance deductions such as the spouse deduction and the financial-asset deduction, generation-skipping surcharges, asset-specific valuation rules, or special regimes like family-business succession. Prior gifts inside the look-back period, penalties for late filing, and how particular assets are valued can all move the outcome. Treat the figure as a planning reference and confirm the exact amount through the NTS Hometax official calculator or a licensed tax accountant before you act.
The amounts you enter are calculated only in your browser and are never sent to or stored on a server.
Read the Privacy Policy →Frequently asked questions
Are the inheritance and gift tax rates the same?
Yes. Both use the same progressive table: 10% up to 100M won, 20% to 500M, 30% to 1B, 40% to 3B, and 50% above 3B. What differs is the deductions, since a gift subtracts the relationship-based gift deduction while an inheritance can draw on a wider set of estate deductions. Because the deductions differ, the same asset value can produce very different tax on each side.
How much can a parent gift a child tax-free?
An adult child can receive up to 50M won from a parent over a rolling 10 years with no gift tax, and a minor child up to 20M won. Between spouses the deduction is 600M won, and other relatives within the 6th degree get 10M won. These are cumulative limits per donor over 10 years, so earlier gifts from the same person count against them.
What is the 3% filing credit?
Filing your inheritance or gift tax yourself by the legal deadline earns a 3% credit on the computed tax, and this tool subtracts it to show the estimated amount payable. For example, 40M won of computed tax becomes about 38.8M won after the credit. Missing the deadline forfeits the credit and can add late-filing and payment penalties.
Does splitting a gift into smaller amounts avoid tax?
Not within the 10-year window. Gifts from the same person are added together and measured against a single deduction limit, and the progressive rates apply to the running total, so slicing one transfer into several does not create extra allowance or drop you into a lower band. The deduction only frees up again as older gifts age past the 10-year mark.
Who actually pays gift tax, the giver or the receiver?
For a gift in Korea, the person receiving the asset is generally the one who files and pays the gift tax, not the giver. For an inheritance, the tax is assessed on the estate and settled by the heirs. This is a frequent source of confusion when families plan transfers, so confirm the filing responsibility for your specific case.
Can I just pay the amount this tool shows?
Treat it as a planning reference, not a final assessment. Inheritance in particular has several deductions, including the spouse and financial-asset deductions, plus valuation rules and possible surcharges that this simple version does not model. Verify the exact figure with the NTS Hometax official calculator or a licensed tax accountant before you file or transfer.