2026 Childcare Allowance Tax Exemption Expansion
Childcare Allowance Tax Exemption Expansion
To reduce the economic burden of childcare and address the low birth rate, tax exemptions for childcare allowances provided by employers have been significantly expanded.
Details of Expansion
- Tax-exempt limit increased from 100,000 won to 200,000 won per month
- No income tax on up to 2.4 million won of annual childcare allowance
Application Method
Employees do not need to apply separately. The employer will automatically process this as tax-exempt income during monthly payroll and year-end tax settlements.
👤 Eligibility
Workers with children under 6 receiving childcare allowances from their employer
📝 How to Apply
No application needed (applied automatically during employer's tax settlement)
Related Policies
2026 Earned Income and Child Tax Credit Regular Application
Regular application for Earned Income and Child Tax Credit to support low-income working households by providing tax refunds based on income and property criteria.
👤 Total property of household members less than 240 million won and combined gross income less than 22M (single), 32M (single-earner), or 38M (dual-earner) won.
2026 Youth Future Savings Account
A 3-year savings account for youth aged 19-34 offering 6-12% government matching funds and tax-exempt interest income.
👤 Aged 19-34, gross income under 75 million KRW, median income under 200%
2026 Youth Tomorrow Savings Account
A policy that helps working youth prepare a lump sum of money by providing an additional 100,000 to 300,000 won per month from the government if they save 100,000 won every month for 3 years.
👤 Working youth aged 19-34 (15-39 for recipients) whose household recognized income is 100% or less of the standard median income.