The Earned Income Tax Credit (EITC) system is set for a major overhaul under the 2026 tax reform plan. Proposals under review include raising the dual-income household income threshold by 8 million won and increasing the maximum payment by approximately 9% to reflect inflation. However, the reform plan awaits National Assembly deliberation, so its final approval and timing remain open.

How Income Thresholds and Payments Will Change by Household Type

According to the tax reform plan, the adjustments by household type are as follows:

• Single-person household: Income threshold 22 million won → 26 million won / Payment cap 1.65 million won → 1.8 million won
• Single-earner household: Income threshold 32 million won → 37 million won / Payment cap 2.85 million won → 3.1 million won
• Dual-income household: Income threshold 44 million won → 52 million won (8 million won increase) / Payment cap 3.3 million won → 3.6 million won

Dual-income households will see the largest relaxation in income thresholds among the three household types. The trend shows that larger households receive greater threshold relaxations, which is interpreted as a result of the combined income calculation method for dual-income households shifting more significantly when reflecting minimum wage increases. However, it has not been confirmed whether this explanation represents the official position of the National Tax Service, and the specific calculation basis requires further review.

Implementation in 2027: Minimum Wage and Inflation Drive the Overhaul

This reform applies to tax periods beginning on or after January 1, 2027. The driving forces behind the revision are minimum wage increases and inflation trends. With the 2027 minimum wage projected to rise to around 10,700 won per hour, the income threshold itself is being raised to ensure that workers earning at that wage level are not excluded from support eligibility. The maximum payment increase of approximately 9% reflects cumulative inflation since the 2022 amendment.

National Assembly Deliberation Remains: Figures Subject to Change

Given that the tax reform plan has not yet passed the National Assembly, it is premature to assume that the currently announced figures are finalized. Going forward, several items must be sequentially confirmed during the legislative process, including potential adjustments to income requirements and payment amounts, consistency between the final 2027 minimum wage decision and the reform plan's calculation criteria, and the scope of income details covered under the 2027 tax period application.

How to Check Current EITC Screening Results

Meanwhile, current EITC screening results are notified by the National Tax Service via mobile and postal mail through decision notices sent to applicants. Applicants who have consented to electronic delivery and opted for bank account payments can check their results first via mobile without any separate procedure. Notification status can also be queried through the call center, automated response system, and Hometax.

[Specific eligibility criteria and payment amounts should be re-verified through official National Tax Service announcements. This is an AI-assisted article.]