Year-End Tax Settlement Preview 2026: 4 Ways to Raise Your Refund Before December 31
The year-end tax settlement preview opens on Hometax every year in early November. It shows your estimated tax from January–September card spending. Before December 31, check your card spending, pension savings, IRP, and monthly rent credits. From 2026, the card deduction limit is higher if you have children.
The year-end tax settlement preview opens on the National Tax Service’s Hometax (홈택스) and Sontax (손택스) in early November every year. In 2025 it opened on November 5. The 2026 opening date has not yet been announced. It already contains your card spending for January~September. Add your expected spending for October~December, and you can see your estimated tax for the year-end settlement next January. Based on the result, adjust the four items below before December 31. They change your refund.
What the preview shows
- Your actual credit card, debit card, and cash receipt spending for January~September
- Your estimated tax, including expected October~December spending and expected insurance, medical, education, and housing costs
- How your tax changes if your dependents or total salary change
The preview result is not a final amount. Your actual year-end settlement will differ depending on your salary and spending through the end of the year.
1. Credit card deduction: first check whether you passed 25% of total salary
The card deduction starts only when your spending for the year exceeds 25% of your total salary. The rates below apply only to the amount above that.
| Where you spend | Deduction rate |
|---|---|
| Credit card | 15% |
| Debit card, cash receipt | 30% |
| Books, newspapers, performances, museums, art galleries, movie theaters, sports facilities (total salary KRW 70 million or less) | 30% |
| Traditional markets, public transportation | 40% |
- If you have not yet passed 25%: There is no deduction up to 25%, so using a credit card with good benefits costs you nothing.
- If you have already passed 25%: For the rest of the year, debit cards and cash receipts are better because their rate is double.
Fees for sports facilities such as gyms and swimming pools also qualify for the 30% deduction if you pay a business designated by the Ministry of Culture, Sports and Tourism (total salary KRW 70 million or less).
2. Credit card deduction limit for 2026: higher if you have children
For spending on or after January 1, 2026, the card deduction limit is higher for employees who have children (including grandchildren).
| Total salary | Basic limit | 1 child | 2 or more children |
|---|---|---|---|
| KRW 70 million or less | KRW 3 million | KRW 3.5 million | KRW 4 million |
| Over KRW 70 million | KRW 2.5 million | KRW 2.75 million | KRW 3 million |
Even if you exceed the limit, spending at traditional markets and on public transportation is deducted additionally, up to KRW 2 million per year. If your total salary is KRW 70 million or less, spending on culture and sports is added, for up to KRW 3 million per year.
3. Pension savings and IRP tax credit: only amounts paid by December 31
You get a tax credit on payments of up to KRW 6 million per year into pension savings, and up to KRW 9 million per year when IRP is included. Amounts paid by December 31 count for this year’s credit.
| Income level | Credit rate | Including local income tax |
|---|---|---|
| Comprehensive income of KRW 45 million or less (if you have only employment income, total salary of KRW 55 million or less) | 15% | 16.5% |
| All other cases | 12% | 13.2% |
If you fill the full KRW 9 million, you reduce your tax by up to KRW 1,485,000 if your total salary is KRW 55 million or less, and by up to KRW 1,188,000 in all other cases. Transfers pile up at year-end, so it is safer to pay in a few days early.
4. Monthly rent tax credit: you must have no home on December 31
The credit is for an employee who is the head of a household with no home as of December 31, and whose total salary is KRW 80 million or less (excluding anyone with comprehensive income over KRW 70 million). The size and price requirements for the home are set by the Enforcement Decree.
- Credit rate of 15%, or 17% if total salary is KRW 55 million or less (comprehensive income KRW 45 million or less)
- Up to KRW 10 million of monthly rent per year
- Even if you had no home through November, if you acquired a home as of December 31, you cannot claim the monthly rent credit.
For rent paid from 2026, the household head claims the credit. A spouse who lives at a different address from the household head can also claim an additional credit if the spouse meets the requirements. In that case, the limit is KRW 10 million for the two people’s rent combined.
What to do in December after seeing the preview
- Check whether your card spending passed 25% of total salary. If it did, switch to debit cards and cash receipts.
- If you have children, plan your remaining spending based on the higher card deduction limit this year.
- See how much room is left under the KRW 6 million and KRW 9 million limits for pension savings and IRP, and pay in before December 31.
- If you pay monthly rent, keep your proof that you have no home on December 31, your lease, and your transfer records.
When you can do it yourself · When to hand it over
You can handle it yourself if
- You have only employment income, and you just check your card spending in the preview and add to your pension savings or IRP.
Better to hand it over if
- You have business, rental, or financial income besides employment income, and must file a combined return in May.
- You want to get back deductions you missed last year through an amended return (경정청구).
Barun Tax & Accounting handles comprehensive income tax filing and amended returns for foreign residents and foreign-owned companies. We reply to emails within one business day. contact@barun-tax.com · KakaoTalk · +82-10-2701-6199