The government will push for a reform of the Earned Income Tax Credit (EITC) system to strengthen work incentives and income support for low-income households. If the reform plan is finalized through the legislative process, income requirements will be eased and maximum payment amounts will be raised starting in 2027, with benefits for dual-earner households expanded especially significantly.

To Take Effect for Applications from September 2027

The reform plan is included in the government's 2027 tax revision proposal announced as part of the 2026 tax code revision, and is expected to be finalized after legislative procedures including National Assembly deliberation and approval. Once confirmed, it will apply to taxable periods beginning on or after January 1, 2027, and is expected to be fully implemented for applications filed from September 2027.

Income Requirements Eased by Household Type

Under the reform plan, the total income threshold will be raised to a level that includes workers earning the 2027 minimum wage (10,700 won per hour). The changes by household type are as follows.

• Single-person household: 22 million won → 26 million won
• Single-earner household: 32 million won → 37 million won
• Dual-earner household: 44 million won → 52 million won

Maximum Payment Raised by About 9%

Taking into account inflation since the 2022 revision, the maximum payment amounts will be raised by about 9%.

• Single-person household: 1.65 million won → 1.8 million won
• Single-earner household: 2.85 million won → 3.1 million won
• Dual-earner household: 3.3 million won → 3.6 million won

Resolving the 'Marriage Penalty' for Dual-Earner Households

This reform expands the upper limit of the income range in which dual-earner households can receive the maximum payment from the current 17 million won to 18 million won, aiming to resolve the so-called 'marriage penalty,' in which EITC benefits decrease due to marriage. The income ranges for receiving the maximum payment for single-person households (4–9 million won) and single-earner households (7–14 million won) will remain the same as under the current system.

A government official stated that this tax revision is expected to contribute to substantial income growth for low-income households and to encouraging work incentives.

[The final content may change depending on legal amendment procedures, including National Assembly deliberation and approval. This article was partially assisted by AI.]