The 2026 tax revision plan includes reforms to the Earned Income Tax Credit (EITC) system. According to data from the National Tax Service, the core of this revision is to ease income requirements and increase maximum payout amounts, reflecting the trends of inflation and minimum wage hikes. The changes will apply starting from the tax period beginning on or after January 1, 2027.

■ Changes in EITC Income Requirements and Maximum Payouts by Household Under this revision, the total income threshold (income requirement) and maximum payout amounts will be raised across all household types: single, single-earner, and dual-earner households. The income requirements will be adjusted so that workers earning up to the 2027 minimum wage level (10,700 won per hour) can benefit, while the maximum payout amounts will be increased by approximately 9% to reflect cumulative inflation since the 2022 amendment.

• Single-person household: Income requirement 22 million won → 26 million won / Maximum payout 1.65 million won → 1.8 million won (Maximum payout range maintained at 4 million to 9 million won)
• Single-earner household: Income requirement 32 million won → 37 million won / Maximum payout 2.85 million won → 3.1 million won (Maximum payout range maintained at 7 million to 14 million won)
• Dual-earner household: Income requirement 44 million won → 52 million won / Maximum payout 3.3 million won → 3.6 million won

In particular, for dual-earner households, the upper limit of the income range eligible for the maximum payout will be expanded from the existing 17 million won to 18 million won, in order to alleviate the so-called "marriage penalty" that placed them at a relative disadvantage compared to single-person and single-earner households.

■ Payout Calculation Method and Future Schedule The EITC payout calculation follows a structure in which the payout increases as earned income rises, maintains its maximum level over a certain range, and then gradually decreases as income increases further. With this revision, the upper limit of the maximum payout range will be raised for single-person and single-earner households, while for dual-earner households, both the maximum payout itself and the upper limit of the maintenance range will be adjusted upward.

However, this revision plan is currently at the government announcement stage and must go through legislative procedures, including National Assembly deliberation and resolution, to be finalized. The revised content is scheduled to be reflected in applications starting from September 2027, and the precise correspondence between the application timing and the applicable tax period will need to be verified separately through future National Tax Service announcements. Going forward, key developments to watch during the National Assembly deliberation process include potential adjustments to income requirement ranges or payout scales, the timing of the final bill's passage, and the National Tax Service's release of detailed implementation guidelines.

[※ This article is intended to provide policy information based on the tax revision plan announced by the government. The final details will be confirmed through the National Assembly's deliberation and resolution process. It is necessary to reconfirm specific application qualifications and payout amounts through National Tax Service announcements. This is an AI-assisted article.]