The National Tax Service plans to expand and overhaul the Earned Income Tax Credit (EITC) system for the first time in five years to provide greater support to more citizens. The number of eligible households will increase from 4.16 million to 4.89 million, an increase of about 730,000, and total payments will grow from 4.7 trillion won to 5.9 trillion won, an expansion of approximately 1.2 trillion won. The overhaul will apply to taxable periods beginning on or after January 1, 2027, and will be implemented for applications filed from September 2027.

[Changes in Income Requirements and Maximum Payment Amounts by Household Type]

The core of the 2026 tax revision plan is the easing of income requirements and an increase in maximum payment amounts. The changes by household type are as follows:

• Single-person households: annual income requirement raised from 22 million won to 26 million won; maximum payment raised from 1.65 million won to 1.8 million won
• Single-earner households: income requirement raised from 32 million won to 37 million won; maximum payment raised from 2.85 million won to 3.1 million won
• Dual-earner households: income requirement raised from 44 million won to 52 million won; maximum payment raised from 3.3 million won to 3.6 million won

[Payment Scale Expanded Over 17 Years... 4.89 Million Households Expected in 2028]

The EITC system has steadily expanded its payment scale over the past 17 years. The number of recipient households was 590,000 in 2009, 1.28 million in 2015, 4.1 million in 2019, 4.42 million in 2022, and 4.16 million in 2025, and after the overhaul it is projected to grow to 4.89 million households in 2028.

Total payment amounts have also grown from 0.4 trillion won in 2009 to 1.5 trillion won in 2015, 4.5 trillion won in 2019, 4.9 trillion won in 2022, and 4.7 trillion won in 2025, and are expected to reach about 5.9 trillion won in 2028.

[Notes]

This content is based on the EITC overhaul under the 2026 tax revision plan. The overhaul is scheduled to apply to taxable periods beginning on or after January 1, 2027, and actual eligibility and payment amounts may vary depending on individual conditions such as household type, income, and assets, as well as related laws and regulations to be finalized later. Before applying, it is necessary to verify the latest criteria through the National Tax Service's Hometax website and official NTS guidance. This article is intended for informational purposes and was prepared with the assistance of AI in the writing and editing process.