Tax & Tax Saving
High-dividend company dividend separate taxation calculator
Compare whether separate taxation (14–30%) of high-dividend company dividend income, in effect from 2026, or comprehensive taxation is more favorable.
Enter values and press Compare
Tax reduced by choosing separate taxation
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Total tax under comprehensive taxation
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If separate taxation is chosen
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More favorable method
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Dividends paid in 2026–2028
High-dividend company dividends can be set apart
Cash dividends from qualifying high-dividend companies can be taxed separately at 14–30% by election, without being combined with other income. The difference grows the more your financial income exceeds KRW 20 million and the higher your other income.
Enter dividends separately
Enter high-dividend company dividends, other domestic dividends, and interest and distributions separately.
Enter other income
If you enter the tax base of employment and business income, it calculates the tax bracket that would apply under comprehensive taxation.
Compare the two methods
Compare total tax under comprehensive taxation and under separate taxation, and choose the more favorable one when you file in May of the following year.
How it is calculated
- Separate taxation rates (national tax): high-dividend company dividends up to KRW 20 million 14%, over KRW 20 million to KRW 300 million 20%, over KRW 300 million to KRW 5 billion 25%, over KRW 5 billion 30%. A 10% local income tax is added separately.
- We assume that if you choose separate taxation, high-dividend company dividends are excluded from the comprehensive taxation of financial income, and the KRW 20 million threshold is judged again using only the remaining interest and dividends.
- Comprehensive taxation: if total interest and dividends exceed KRW 20 million, the excess is added to other income and calculated at progressive rates of 6–45%, and the higher amount compared with 14% separate taxation of the whole is charged. For domestic dividends, a gross-up and then the dividend tax credit are reflected.
- All taxes include local income tax, and withholding (15.4%) is treated as tax already paid, with only the total burden compared. The effect on health insurance premiums is not reflected.
Who decides which companies are high-dividend companies?
Whether a company is a high-dividend company is determined by its payout ratio and dividend growth rate, and you can check it in the company's dividend disclosure and payment notice. The only thing the investor can choose is whether to elect separate taxation when filing.
FAQ
Is separate taxation applied automatically?
No. When you receive dividends, 15.4% is withheld as before, and separate taxation applies only if you apply for it when filing your comprehensive income tax return in May of the following year. If it isn't favorable, you simply don't apply.
Which companies are high-dividend companies?
Listed companies with a payout ratio of 40% or more, or a payout ratio of 25% or more with dividends increased by 10% or more from the previous year. Cash dividends must not have decreased from the previous year, and some entities such as REITs are excluded. Check whether a company qualifies in its disclosures.
Is it meaningless if financial income is KRW 20 million or less?
If high-dividend company dividends are KRW 20 million or less and, combined with other financial income, do not exceed KRW 20 million, both methods give 14% (15.4% including local tax), so there is no difference. The effect is large when financial income exceeds KRW 20 million and other income is high.
Can choosing separate taxation ever be worse?
If high-dividend company dividends are very large and other income is small, the comprehensive taxation rate can be lower. This calculator computes both methods and shows the smaller one.
Until when does it apply?
It applies on a temporary basis to dividends received from January 1, 2026 to December 31, 2028. Whether it will be extended afterward must be checked against tax law amendments.
Do dividends inside an ISA or pension account qualify too?
Dividends received inside an ISA or pension account are not subject to comprehensive taxation of financial income in the first place, and the account's own taxation method applies. This calculator is based on dividends received in a regular brokerage account.
Results are estimates based on your inputs and simplified assumptions, and are for reference only, not a basis for investment decisions.
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