The series covers everyday tax knowledge, tax reform, tax-saving strategies and policy debates
First topic: '2026 tax reform — how will my taxes change?'
Dependent deduction eligibility to expand as income threshold rises from 1 million won to 3 million won
Editor's note: Taxes affect every citizen, yet the complexity of tax law and unfamiliar terminology make the subject daunting for many. Understanding taxes closely tied to daily life — income tax, property tax, comprehensive real estate tax, inheritance tax and gift tax — is the starting point for sound financial decision-making. The Herald Business is launching "Yoon Yu-jin's Tax Talk," a series produced with Yoon Yu-jin, a Seoul Metropolitan Council member and holder of a doctorate in accounting and taxation. The series aims to explain everyday tax knowledge, major tax reforms, tax-saving methods and key policy debates in clear, accessible language from a citizen's perspective. Yoon's background: master's degree in tax law from Yonsei University; doctorate in accounting and taxation from Gachon University; 12th-term Seoul Metropolitan Council member (Education Committee); head tax accountant at Yoon Yu-jin Tax Accounting Office; adjunct professor in the Department of Accounting and Taxation at Gachon University; National Tax Service (March 2021–July 2017).
Yoon Yu-jin, a People Power Party Seoul Metropolitan Council member representing Songpa District 1 and a practicing tax accountant with 25 years of experience — including time at the National Tax Service — is breaking down complex tax issues in plain language for ordinary citizens.
The Herald Business is launching the series "Yoon Yu-jin's Tax Talk." The first topic is "2026 tax reform — how will my taxes change?"
In the series' debut, Yoon highlights changes from the government's 2026 tax reform proposal, announced in August, that salaried workers, young adults and the self-employed should watch closely. Rather than listing dense statutory provisions, she focuses on everyday situations involving monthly rent, dependent deductions, tax filing, real estate and more.
'A government announcement is not the same as enacted law'
Yoon's first point is that readers must distinguish between a "government proposal" and "finalized tax law."
The government unveiled its 2026 tax reform proposal on Aug. 3. Because the proposal must pass National Assembly review and a vote, some provisions could be revised or dropped during deliberations.
Yoon said that when people read tax-related news, they should not simply focus on deduction amounts or tax rates — they need to first check whether a measure is already in effect or is merely a government proposal that may take effect in the future.
"With tax news, the first thing to verify is whether it has been finalized," she said, urging readers to distinguish between what the government has announced and what is actually in force.
Dependent deduction threshold to ease — but the 1.5 million won deduction itself is not doubling
One change salaried workers will feel directly is a relaxation of the income requirements for the basic deduction covering spouses and dependents.
Under the government proposal, the income threshold for a spouse or dependent to qualify for the basic deduction would rise from the current 1 million won ($742) to 3 million won per year. For those with only employment income, the gross salary ceiling would also widen, from 5 million won to 7.5 million won.
An important caveat: the basic deduction amount itself is not increasing from 1.5 million won to 3 million won. The structure is that the income requirements for qualifying for the existing 1.5 million won basic deduction are being loosened, broadening the pool of eligible family members.
In practice, parents or spouses who previously fell outside the deduction because of modest income from a pension or short-term work could now qualify.
The actual tax savings will vary depending on each person's income, applicable tax rate and other deductions. Rather than assuming a fixed saving, individuals should assess their own income and family circumstances.
Easing the rent burden for young adults and supporting retirement savings
Changes relevant to younger taxpayers were also highlighted.
The government proposal would raise the annual rent cap eligible for the rent tax credit from 10 million won to 12 million won, and would grant those aged 15 to 34 a preferential rent tax credit rate of 17 percent regardless of income level.
The proposal also moves to strengthen tax support for retirement asset accumulation among young adults, including through individual retirement pension accounts.
Yoon said the most important thing when reading about tax reform is not to focus on phrases like "deductions are getting bigger," but to check exactly which conditions apply to one's own situation.
A higher deduction ceiling does not mean taxpayers get back the full additional amount as a refund. The actual tax-saving effect depends on whether the measure is an income deduction or a tax credit, as well as the individual's income and applicable tax rate.
'Even if you miss the deadline, don't give up — file as soon as possible'
For the self-employed and business owners, Yoon stressed the importance of filing timing.
The 2026 tax reform proposal includes a provision to raise the penalty reduction rate for late filings submitted within one week of the statutory deadline from the current 50 percent to 75 percent.
Yoon said that during her time at the National Tax Service she frequently encountered cases where taxpayers who missed a deadline simply delayed filing further, causing their penalty burden to grow significantly.
"Even if you've missed the deadline, don't give up — the important thing is to file as quickly as possible," she advised. Filing promptly after a missed deadline, rather than putting it off further, can help reduce the overall tax burden.
The proposal also includes measures to expand the income eligibility and maximum payment amount for the Earned Income Tax Credit, which supports low-income working households.
Real estate tax policy shifts weight from ownership to residency
Real estate taxation was another major topic in the series' debut.
The government proposal would raise the basic deduction for the comprehensive real estate tax for single-home households that actually live in their property from the current assessed value of 1.2 billion won to 1.4 billion won, while keeping the deduction at 1.2 billion won for single-home owners who do not reside in the property.
The intent is for the government to more actively factor in not just the number of homes owned but also the home's value and whether the owner actually lives there when determining the tax burden.
Yoon summarized the direction of the real estate tax reform as "favoring homes people actually live in over homes they simply hold."
However, she cautioned that because real estate transactions involve large sums and significant tax implications, people should not make decisions based solely on the government proposal — they should wait to see what is ultimately confirmed after National Assembly deliberations.
Translating 'everyday taxes' through 16 years at the National Tax Service
"Yoon Yu-jin's Tax Talk" is a series that uses real-life examples to demystify tax issues that citizens find intimidating. Drawing on 16 years at the National Tax Service and her career as a tax accountant, Yoon translates complex tax law into language that ordinary citizens can understand.
The first installment centers on the 2026 tax reform proposal and examines changes closely tied to daily life — including the basic dependent deduction, monthly rent and retirement pension support for young adults, late filing by the self-employed, the Earned Income Tax Credit and real estate taxation.
Above all, Yoon emphasized that even under the same system, actual tax burdens can differ depending on an individual's income, family composition and housing situation. Not confusing the government's proposed reforms with tax law currently in force, she said, is the first step toward truly understanding tax information.
7toy7@heraldcorp.com
