How Much Tax Will You Pay? Comparing Salaries in Korea & Australia
When comparing income taxes for salaried employees in Korea and Australia, many professionals wonder: which country takes a bigger cut from your paycheck? While both countries impose relatively high income taxes, their systems differ significantly in complexity, structure, and additional levies. Let’s break it down to see how each system affects take-home pay and financial planning. 1. Income Tax Structure: One of the biggest differences between Korea and Australia’s tax systems is their complexity. South Korea: A Multi-Layered Tax System In Korea, salaried employees face a multi-layered taxation system that includes: National Income Tax: Progressive tax rates ranging from 6% to 45% . Local Income Tax: An additional 10% of the national tax , effectively increasing the total tax burden. Resident Tax: A small but mandatory tax at the local government level. Other Mandatory Contributions: Such as National Pension and National Health Insurance, which are deducted from sala...