{"content_id":"1jxg26fm1b","slug":"hometown-donation-tax-credit-2027-regional-rates-2","locale":"en","schema_type":"Article","category":"policy_guide","category_name":"Policy Guide","title":"Hometown Love Donation Tax Credit: Proposed Regional Incentives for 2027","summary":"A plan to vary Hometown Love Donation tax credits based on regional conditions is being pursued with implementation targeted for 2027. This article separately explains the current credit brackets, the proposed changes, the calculation structure for a maximum credit of KRW 5.6 million, and what to check before donating.","sponsorship_disclosure":null,"affiliate_disclosure":null,"commerce_disclosure":null,"author":{"name":"Injoys Editorial Team","url":"https://injoys.com/ko/about"},"key_points":["The Hometown Love Donation Program allows individuals to donate a combined total of up to KRW 20 million per year to local governments outside their registered place of residence.","Under the proposed 2027 plan, donations exceeding KRW 100,000 would receive higher tax credit rates in non-capital and preferential regions.","For other non-capital and preferential regions, a proposal has been made to raise the credit rate from 44% to 55% for the bracket exceeding KRW 100,000 and at most KRW 200,000.","For amounts exceeding KRW 200,000 in other preferential non-capital regions, the credit rate would rise from 16.5% to 27.5%, resulting in a maximum credit of KRW 5.6 million.","Because the implementation date, regional classifications, or tax rates may change during the legislative amendment and subordinate regulation process, donors should check the latest criteria before donating."],"content_markdown":"A reform proposal that would apply different Hometown Love Donation Program tax credits depending on local conditions is being pursued with the goal of implementation in 2027. However, as of August 30, 2026, this remains a proposal under consideration and should be distinguished from the current system, which has already been finalized.\n\n## What Is the Hometown Love Donation Program?\n\nThe Hometown Love Donation Program allows individuals to donate to a local government outside their current place of residence and receive tax credits and thank-you gifts. Although the program’s name includes “hometown,” donations are not limited to a person’s birthplace or former place of residence.\n\nThe main conditions are as follows.\n\n- **Eligible donors:** Individuals may participate, but donations made in the name of a corporation are not permitted.\n- **Ineligible destinations:** Donors may not donate to a local government that includes their registered address. Eligibility must be checked for both metropolitan-level and municipal-level local governments.\n- **Annual donation limit:** The combined limit for donations to all local governments is KRW 20 million.\n- **Tax benefits:** Income tax and local income tax liabilities are reduced according to the tax credit rate for each bracket.\n- **Thank-you gifts:** Local governments may provide designated thank-you gifts. Specific provision criteria must be checked on Hometown Love e-um. The types and provision rates of thank-you gifts vary by region.\n\nTax credits and thank-you gifts are separate benefits. Receiving a thank-you gift does not cause its value to be deducted from the tax credit amount.\n\n## How Are Current Tax Credits Calculated?\n\nUnder the current structure, the applicable credit rate is determined by the donation amount bracket rather than the region receiving the donation. Based on the general combined tax credit effect, the structure is as follows.\n\n| Donation bracket | Current credit rate | How the bracket applies |\n|---|---:|---|\n| KRW 100,000 or less | Equivalent to 100% | An amount equivalent to the full donation within this bracket |\n| More than KRW 100,000 and at most KRW 200,000 | 44.0% | Applied to the portion exceeding KRW 100,000 |\n| More than KRW 200,000 | 16.5% | Applied to the portion exceeding KRW 200,000 |\n\nThe rate for each bracket is not applied to the entire donation. For example, a donation of KRW 300,000 is calculated separately for each bracket.\n\n- First KRW 100,000: KRW 100,000\n- Portion over KRW 100,000 and at most KRW 200,000: KRW 100,000 × 44% = KRW 44,000\n- Portion over KRW 200,000: KRW 100,000 × 16.5% = KRW 16,500\n- Total tax credit effect: KRW 160,500\n\nUnder the current rules, the maximum calculated credit for donating the annual limit of KRW 20 million is KRW 3,411,000.\n\n- KRW 100,000 + KRW 44,000 + KRW 19.8 million × 16.5%\n- Total: KRW 3,411,000\n\nThis amount is not guaranteed to be refunded in cash to every donor. The actual tax savings may vary depending on whether the donor has sufficient income tax and local income tax liabilities to offset and how many other tax credits apply.\n\n## What Will Change Under the Proposed Regional Preferential Rates for 2027?\n\nThe key feature of the proposal is to apply different regional credit rates to donations exceeding KRW 100,000. The structure is intended to encourage donations by offering higher credit rates to regions facing relatively difficult fiscal and demographic conditions.\n\nThe following four regional categories are under review.\n\n1. Capital region\n2. Non-capital metropolitan cities and similar areas\n3. Other non-capital areas\n4. Other preferential non-capital areas\n\nThe main bracket changes identified in materials provided by the operator are as follows.\n\n| Donation bracket | Applicable region | Current credit rate | Proposed 2027 credit rate |\n|---|---|---:|---:|\n| More than KRW 100,000 and at most KRW 200,000 | Other non-capital areas | 44.0% | 55.0% |\n| More than KRW 100,000 and at most KRW 200,000 | Other preferential non-capital areas | 44.0% | 55.0% |\n| More than KRW 200,000 | Other preferential non-capital areas | 16.5% | 27.5% |\n\nThe detailed credit rates applicable to the capital region, non-capital metropolitan cities, and similar areas, as well as the designation criteria and list of preferential regions, must be checked in the final legislation and subordinate regulations. A region should not be assumed to qualify for preferential treatment based only on its general image or population size.\n\n## How Is the Maximum of KRW 5.6 Million Calculated?\n\nUnder the proposal, if a donor contributes the annual limit of KRW 20 million to another preferential non-capital area and qualifies for all of the highest preferential rates, the maximum credit is calculated as KRW 5.6 million.\n\n| Calculation bracket | Formula | Credit amount |\n|---|---:|---:|\n| KRW 100,000 or less | KRW 100,000 × 100% | KRW 100,000 |\n| More than KRW 100,000 and at most KRW 200,000 | KRW 100,000 × 55% | KRW 55,000 |\n| More than KRW 200,000 and at most KRW 20 million | KRW 19.8 million × 27.5% | KRW 5,445,000 |\n| Total | KRW 100,000 + KRW 55,000 + KRW 5,445,000 | KRW 5.6 million |\n\nCompared with the current maximum of KRW 3,411,000, this represents a calculated increase of KRW 2,189,000. However, KRW 5.6 million is an upper-limit calculation based on donating the full KRW 20 million to a region eligible for the highest preferential treatment and having sufficient related tax liabilities.\n\n## How Much Could the Same Donation Vary by Region?\n\nThe difference can be seen easily by comparing the current method with the proposed preferential rates for a donation of KRW 300,000.\n\n### Under the Current Credit Rates\n\n- KRW 100,000 or less: KRW 100,000\n- Next KRW 100,000: KRW 44,000\n- Remaining KRW 100,000: KRW 16,500\n- Total: KRW 160,500\n\n### Under the Proposed Rates for Other Preferential Non-Capital Areas\n\n- KRW 100,000 or less: KRW 100,000\n- Next KRW 100,000: KRW 55,000\n- Remaining KRW 100,000: KRW 27,500\n- Total: KRW 182,500\n\nThe difference between the two calculations is KRW 22,000. Any thank-you gift offered by the local government may be received separately, but its actual value and delivery conditions must be checked for each region.\n\n## Points That Are Easy to Miss When Donating Based Only on the Credit Rate\n\nExplanations of regional preferential rates tend to emphasize the credit rates themselves, but the following conditions are also important when making an actual decision.\n\n### A Tax Credit Is Not an Unconditionally Paid Refund\n\nA tax credit reduces the amount of tax payable. If the final tax liability available to offset is insufficient, the donor may not receive the full benefit of the stated maximum amount. The final result also varies if the donor has substantial tax credits for other donations, insurance premiums, medical expenses, or education expenses.\n\n### Thank-You Gifts Do Not Mean a 30% Cash Payment\n\nBecause the criteria for providing thank-you gifts differ by local government, they must be checked on Hometown Love e-um. Donors should verify the items, required points, inventory, and eligible delivery areas.\n\n### Splitting Donations Among Regions May Change the Calculation\n\nEven when donations are divided among multiple regions, they are combined when applying the annual donation limit. If differentiated credits take effect in 2027, how each region’s category and donation bracket are applied may become important, so the finalized rules must be checked for the actual calculation method.\n\n### Donations Made Before a Policy Change Are Subject to the Rules for That Year\n\nDonation tax credits are generally determined under the laws applicable in the year the donation was made. It should not be assumed that rates scheduled to take effect in 2027 will apply retroactively to donations made in 2026.\n\n## Checklist Before Donating\n\n- Confirm that the recipient is not a local government that includes your registered address.\n- Confirm the official regional category into which the area is classified.\n- Check the tax credit rate in effect on the donation date.\n- Review whether your expected final tax liability is sufficient to use the credit amount.\n- Check the thank-you gift’s points, items, inventory, and delivery conditions.\n- After completing the donation, confirm the receipt and whether it is reflected in National Tax Service year-end tax settlement records.\n- Employees should verify that it is reflected in their year-end tax settlement, while those required to file due to comprehensive income should verify it during the comprehensive income tax filing process.\n\nOnline donations and thank-you gift selections can be handled through Hometown Love e-um, the official integrated platform. However, before making payment, it is safest to reconfirm that the eligible donation regions, credit information, and thank-you gift conditions displayed on the screen are current.\n\n## Items That Must Be Rechecked Before Implementation\n\nThe differentiated regional credits planned for 2027 are part of a tax reform being pursued by the government. The actual application criteria will be finalized only after the National Assembly passes the relevant tax law amendments and subordinate regulations are established.\n\nIn particular, the following items may change in the final system.\n\n- Effective date and first eligible donation date\n- Legal definitions of the four regional categories\n- Designation criteria and validity periods for preferential regions\n- Detailed credit rates applicable to the capital region, non-capital metropolitan cities, and similar areas\n- Applicable rules when a region’s category changes during the donation process\n- How information is displayed in year-end tax settlement and comprehensive income tax filing records\n\nAccordingly, when planning donations for 2027, donors should check the applicable laws and official regional lists through Hometown Love e-um, the Ministry of the Interior and Safety, the Ministry of Economy and Finance, and the Korean Law Information Center.","content_html":"\u003cp\u003eA reform proposal that would apply different Hometown Love Donation Program tax credits depending on local conditions is being pursued with the goal of implementation in 2027. However, as of August 30, 2026, this remains a proposal under consideration and should be distinguished from the current system, which has already been finalized.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#what-is-the-hometown-love-donation-program\" class=\"anchor\" id=\"what-is-the-hometown-love-donation-program\"\u003e\u003c/a\u003eWhat Is the Hometown Love Donation Program?\u003c/h2\u003e\n\u003cp\u003eThe Hometown Love Donation Program allows individuals to donate to a local government outside their current place of residence and receive tax credits and thank-you gifts. Although the program’s name includes “hometown,” donations are not limited to a person’s birthplace or former place of residence.\u003c/p\u003e\n\u003cp\u003eThe main conditions are as follows.\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003e\n\u003cstrong\u003eEligible donors:\u003c/strong\u003e Individuals may participate, but donations made in the name of a corporation are not permitted.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eIneligible destinations:\u003c/strong\u003e Donors may not donate to a local government that includes their registered address. Eligibility must be checked for both metropolitan-level and municipal-level local governments.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eAnnual donation limit:\u003c/strong\u003e The combined limit for donations to all local governments is KRW 20 million.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eTax benefits:\u003c/strong\u003e Income tax and local income tax liabilities are reduced according to the tax credit rate for each bracket.\u003c/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eThank-you gifts:\u003c/strong\u003e Local governments may provide designated thank-you gifts. Specific provision criteria must be checked on Hometown Love e-um. The types and provision rates of thank-you gifts vary by region.\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eTax credits and thank-you gifts are separate benefits. Receiving a thank-you gift does not cause its value to be deducted from the tax credit amount.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#how-are-current-tax-credits-calculated\" class=\"anchor\" id=\"how-are-current-tax-credits-calculated\"\u003e\u003c/a\u003eHow Are Current Tax Credits Calculated?\u003c/h2\u003e\n\u003cp\u003eUnder the current structure, the applicable credit rate is determined by the donation amount bracket rather than the region receiving the donation. Based on the general combined tax credit effect, the structure is as follows.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eDonation bracket\u003c/th\u003e\n\u003cth\u003eCurrent credit rate\u003c/th\u003e\n\u003cth\u003eHow the bracket applies\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Donation bracket\"\u003eKRW 100,000 or less\u003c/td\u003e\n\u003ctd data-label=\"Current credit rate\"\u003eEquivalent to 100%\u003c/td\u003e\n\u003ctd data-label=\"How the bracket applies\"\u003eAn amount equivalent to the full donation within this bracket\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Donation bracket\"\u003eMore than KRW 100,000 and at most KRW 200,000\u003c/td\u003e\n\u003ctd data-label=\"Current credit rate\"\u003e44.0%\u003c/td\u003e\n\u003ctd data-label=\"How the bracket applies\"\u003eApplied to the portion exceeding KRW 100,000\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Donation bracket\"\u003eMore than KRW 200,000\u003c/td\u003e\n\u003ctd data-label=\"Current credit rate\"\u003e16.5%\u003c/td\u003e\n\u003ctd data-label=\"How the bracket applies\"\u003eApplied to the portion exceeding KRW 200,000\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eThe rate for each bracket is not applied to the entire donation. For example, a donation of KRW 300,000 is calculated separately for each bracket.\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eFirst KRW 100,000: KRW 100,000\u003c/li\u003e\n\u003cli\u003ePortion over KRW 100,000 and at most KRW 200,000: KRW 100,000 × 44% = KRW 44,000\u003c/li\u003e\n\u003cli\u003ePortion over KRW 200,000: KRW 100,000 × 16.5% = KRW 16,500\u003c/li\u003e\n\u003cli\u003eTotal tax credit effect: KRW 160,500\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eUnder the current rules, the maximum calculated credit for donating the annual limit of KRW 20 million is KRW 3,411,000.\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eKRW 100,000 + KRW 44,000 + KRW 19.8 million × 16.5%\u003c/li\u003e\n\u003cli\u003eTotal: KRW 3,411,000\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eThis amount is not guaranteed to be refunded in cash to every donor. The actual tax savings may vary depending on whether the donor has sufficient income tax and local income tax liabilities to offset and how many other tax credits apply.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#what-will-change-under-the-proposed-regional-preferential-rates-for-2027\" class=\"anchor\" id=\"what-will-change-under-the-proposed-regional-preferential-rates-for-2027\"\u003e\u003c/a\u003eWhat Will Change Under the Proposed Regional Preferential Rates for 2027?\u003c/h2\u003e\n\u003cp\u003eThe key feature of the proposal is to apply different regional credit rates to donations exceeding KRW 100,000. The structure is intended to encourage donations by offering higher credit rates to regions facing relatively difficult fiscal and demographic conditions.\u003c/p\u003e\n\u003cp\u003eThe following four regional categories are under review.\u003c/p\u003e\n\u003col\u003e\n\u003cli\u003eCapital region\u003c/li\u003e\n\u003cli\u003eNon-capital metropolitan cities and similar areas\u003c/li\u003e\n\u003cli\u003eOther non-capital areas\u003c/li\u003e\n\u003cli\u003eOther preferential non-capital areas\u003c/li\u003e\n\u003c/ol\u003e\n\u003cp\u003eThe main bracket changes identified in materials provided by the operator are as follows.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eDonation bracket\u003c/th\u003e\n\u003cth\u003eApplicable region\u003c/th\u003e\n\u003cth\u003eCurrent credit rate\u003c/th\u003e\n\u003cth\u003eProposed 2027 credit rate\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Donation bracket\"\u003eMore than KRW 100,000 and at most KRW 200,000\u003c/td\u003e\n\u003ctd data-label=\"Applicable region\"\u003eOther non-capital areas\u003c/td\u003e\n\u003ctd data-label=\"Current credit rate\"\u003e44.0%\u003c/td\u003e\n\u003ctd data-label=\"Proposed 2027 credit rate\"\u003e55.0%\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Donation bracket\"\u003eMore than KRW 100,000 and at most KRW 200,000\u003c/td\u003e\n\u003ctd data-label=\"Applicable region\"\u003eOther preferential non-capital areas\u003c/td\u003e\n\u003ctd data-label=\"Current credit rate\"\u003e44.0%\u003c/td\u003e\n\u003ctd data-label=\"Proposed 2027 credit rate\"\u003e55.0%\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Donation bracket\"\u003eMore than KRW 200,000\u003c/td\u003e\n\u003ctd data-label=\"Applicable region\"\u003eOther preferential non-capital areas\u003c/td\u003e\n\u003ctd data-label=\"Current credit rate\"\u003e16.5%\u003c/td\u003e\n\u003ctd data-label=\"Proposed 2027 credit rate\"\u003e27.5%\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eThe detailed credit rates applicable to the capital region, non-capital metropolitan cities, and similar areas, as well as the designation criteria and list of preferential regions, must be checked in the final legislation and subordinate regulations. A region should not be assumed to qualify for preferential treatment based only on its general image or population size.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#how-is-the-maximum-of-krw-56-million-calculated\" class=\"anchor\" id=\"how-is-the-maximum-of-krw-56-million-calculated\"\u003e\u003c/a\u003eHow Is the Maximum of KRW 5.6 Million Calculated?\u003c/h2\u003e\n\u003cp\u003eUnder the proposal, if a donor contributes the annual limit of KRW 20 million to another preferential non-capital area and qualifies for all of the highest preferential rates, the maximum credit is calculated as KRW 5.6 million.\u003c/p\u003e\n\u003cdiv class=\"overflow-x-auto\"\u003e\u003ctable\u003e\n\u003cthead\u003e\n\u003ctr\u003e\n\u003cth\u003eCalculation bracket\u003c/th\u003e\n\u003cth\u003eFormula\u003c/th\u003e\n\u003cth\u003eCredit amount\u003c/th\u003e\n\u003c/tr\u003e\n\u003c/thead\u003e\n\u003ctbody\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Calculation bracket\"\u003eKRW 100,000 or less\u003c/td\u003e\n\u003ctd data-label=\"Formula\"\u003eKRW 100,000 × 100%\u003c/td\u003e\n\u003ctd data-label=\"Credit amount\"\u003eKRW 100,000\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Calculation bracket\"\u003eMore than KRW 100,000 and at most KRW 200,000\u003c/td\u003e\n\u003ctd data-label=\"Formula\"\u003eKRW 100,000 × 55%\u003c/td\u003e\n\u003ctd data-label=\"Credit amount\"\u003eKRW 55,000\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Calculation bracket\"\u003eMore than KRW 200,000 and at most KRW 20 million\u003c/td\u003e\n\u003ctd data-label=\"Formula\"\u003eKRW 19.8 million × 27.5%\u003c/td\u003e\n\u003ctd data-label=\"Credit amount\"\u003eKRW 5,445,000\u003c/td\u003e\n\u003c/tr\u003e\n\u003ctr\u003e\n\u003ctd data-label=\"Calculation bracket\"\u003eTotal\u003c/td\u003e\n\u003ctd data-label=\"Formula\"\u003eKRW 100,000 + KRW 55,000 + KRW 5,445,000\u003c/td\u003e\n\u003ctd data-label=\"Credit amount\"\u003eKRW 5.6 million\u003c/td\u003e\n\u003c/tr\u003e\n\u003c/tbody\u003e\n\u003c/table\u003e\u003c/div\u003e\n\u003cp\u003eCompared with the current maximum of KRW 3,411,000, this represents a calculated increase of KRW 2,189,000. However, KRW 5.6 million is an upper-limit calculation based on donating the full KRW 20 million to a region eligible for the highest preferential treatment and having sufficient related tax liabilities.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#how-much-could-the-same-donation-vary-by-region\" class=\"anchor\" id=\"how-much-could-the-same-donation-vary-by-region\"\u003e\u003c/a\u003eHow Much Could the Same Donation Vary by Region?\u003c/h2\u003e\n\u003cp\u003eThe difference can be seen easily by comparing the current method with the proposed preferential rates for a donation of KRW 300,000.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#under-the-current-credit-rates\" class=\"anchor\" id=\"under-the-current-credit-rates\"\u003e\u003c/a\u003eUnder the Current Credit Rates\u003c/h3\u003e\n\u003cul\u003e\n\u003cli\u003eKRW 100,000 or less: KRW 100,000\u003c/li\u003e\n\u003cli\u003eNext KRW 100,000: KRW 44,000\u003c/li\u003e\n\u003cli\u003eRemaining KRW 100,000: KRW 16,500\u003c/li\u003e\n\u003cli\u003eTotal: KRW 160,500\u003c/li\u003e\n\u003c/ul\u003e\n\u003ch3\u003e\n\u003ca href=\"#under-the-proposed-rates-for-other-preferential-non-capital-areas\" class=\"anchor\" id=\"under-the-proposed-rates-for-other-preferential-non-capital-areas\"\u003e\u003c/a\u003eUnder the Proposed Rates for Other Preferential Non-Capital Areas\u003c/h3\u003e\n\u003cul\u003e\n\u003cli\u003eKRW 100,000 or less: KRW 100,000\u003c/li\u003e\n\u003cli\u003eNext KRW 100,000: KRW 55,000\u003c/li\u003e\n\u003cli\u003eRemaining KRW 100,000: KRW 27,500\u003c/li\u003e\n\u003cli\u003eTotal: KRW 182,500\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eThe difference between the two calculations is KRW 22,000. Any thank-you gift offered by the local government may be received separately, but its actual value and delivery conditions must be checked for each region.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#points-that-are-easy-to-miss-when-donating-based-only-on-the-credit-rate\" class=\"anchor\" id=\"points-that-are-easy-to-miss-when-donating-based-only-on-the-credit-rate\"\u003e\u003c/a\u003ePoints That Are Easy to Miss When Donating Based Only on the Credit Rate\u003c/h2\u003e\n\u003cp\u003eExplanations of regional preferential rates tend to emphasize the credit rates themselves, but the following conditions are also important when making an actual decision.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#a-tax-credit-is-not-an-unconditionally-paid-refund\" class=\"anchor\" id=\"a-tax-credit-is-not-an-unconditionally-paid-refund\"\u003e\u003c/a\u003eA Tax Credit Is Not an Unconditionally Paid Refund\u003c/h3\u003e\n\u003cp\u003eA tax credit reduces the amount of tax payable. If the final tax liability available to offset is insufficient, the donor may not receive the full benefit of the stated maximum amount. The final result also varies if the donor has substantial tax credits for other donations, insurance premiums, medical expenses, or education expenses.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#thank-you-gifts-do-not-mean-a-30-cash-payment\" class=\"anchor\" id=\"thank-you-gifts-do-not-mean-a-30-cash-payment\"\u003e\u003c/a\u003eThank-You Gifts Do Not Mean a 30% Cash Payment\u003c/h3\u003e\n\u003cp\u003eBecause the criteria for providing thank-you gifts differ by local government, they must be checked on Hometown Love e-um. Donors should verify the items, required points, inventory, and eligible delivery areas.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#splitting-donations-among-regions-may-change-the-calculation\" class=\"anchor\" id=\"splitting-donations-among-regions-may-change-the-calculation\"\u003e\u003c/a\u003eSplitting Donations Among Regions May Change the Calculation\u003c/h3\u003e\n\u003cp\u003eEven when donations are divided among multiple regions, they are combined when applying the annual donation limit. If differentiated credits take effect in 2027, how each region’s category and donation bracket are applied may become important, so the finalized rules must be checked for the actual calculation method.\u003c/p\u003e\n\u003ch3\u003e\n\u003ca href=\"#donations-made-before-a-policy-change-are-subject-to-the-rules-for-that-year\" class=\"anchor\" id=\"donations-made-before-a-policy-change-are-subject-to-the-rules-for-that-year\"\u003e\u003c/a\u003eDonations Made Before a Policy Change Are Subject to the Rules for That Year\u003c/h3\u003e\n\u003cp\u003eDonation tax credits are generally determined under the laws applicable in the year the donation was made. It should not be assumed that rates scheduled to take effect in 2027 will apply retroactively to donations made in 2026.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#checklist-before-donating\" class=\"anchor\" id=\"checklist-before-donating\"\u003e\u003c/a\u003eChecklist Before Donating\u003c/h2\u003e\n\u003cul\u003e\n\u003cli\u003eConfirm that the recipient is not a local government that includes your registered address.\u003c/li\u003e\n\u003cli\u003eConfirm the official regional category into which the area is classified.\u003c/li\u003e\n\u003cli\u003eCheck the tax credit rate in effect on the donation date.\u003c/li\u003e\n\u003cli\u003eReview whether your expected final tax liability is sufficient to use the credit amount.\u003c/li\u003e\n\u003cli\u003eCheck the thank-you gift’s points, items, inventory, and delivery conditions.\u003c/li\u003e\n\u003cli\u003eAfter completing the donation, confirm the receipt and whether it is reflected in National Tax Service year-end tax settlement records.\u003c/li\u003e\n\u003cli\u003eEmployees should verify that it is reflected in their year-end tax settlement, while those required to file due to comprehensive income should verify it during the comprehensive income tax filing process.\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eOnline donations and thank-you gift selections can be handled through Hometown Love e-um, the official integrated platform. However, before making payment, it is safest to reconfirm that the eligible donation regions, credit information, and thank-you gift conditions displayed on the screen are current.\u003c/p\u003e\n\u003ch2\u003e\n\u003ca href=\"#items-that-must-be-rechecked-before-implementation\" class=\"anchor\" id=\"items-that-must-be-rechecked-before-implementation\"\u003e\u003c/a\u003eItems That Must Be Rechecked Before Implementation\u003c/h2\u003e\n\u003cp\u003eThe differentiated regional credits planned for 2027 are part of a tax reform being pursued by the government. The actual application criteria will be finalized only after the National Assembly passes the relevant tax law amendments and subordinate regulations are established.\u003c/p\u003e\n\u003cp\u003eIn particular, the following items may change in the final system.\u003c/p\u003e\n\u003cul\u003e\n\u003cli\u003eEffective date and first eligible donation date\u003c/li\u003e\n\u003cli\u003eLegal definitions of the four regional categories\u003c/li\u003e\n\u003cli\u003eDesignation criteria and validity periods for preferential regions\u003c/li\u003e\n\u003cli\u003eDetailed credit rates applicable to the capital region, non-capital metropolitan cities, and similar areas\u003c/li\u003e\n\u003cli\u003eApplicable rules when a region’s category changes during the donation process\u003c/li\u003e\n\u003cli\u003eHow information is displayed in year-end tax settlement and comprehensive income tax filing records\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003eAccordingly, when planning donations for 2027, donors should check the applicable laws and official regional lists through Hometown Love e-um, the Ministry of the Interior and Safety, the Ministry of Economy and Finance, and the Korean Law Information Center.\u003c/p\u003e\n","tags":["Everyday Finance","Taxes","Year-end tax settlement","Tax credit","Hometown Love Donation Program"],"faqs":[{"question":"Can donations under the Hometown Love Donation Program only be made to one's actual hometown?","answer":"No. Regardless of one's birthplace or previous place of residence, donations may be made to any local government other than the one in which one's registered address is located."},{"question":"How much can I donate annually under the Hometown Love Donation Program?","answer":"Each individual may donate up to KRW 20 million per year in total across all local governments. This is a combined annual limit, not a limit for each region."},{"question":"Will the tax credit rates definitely vary by region starting in 2027?","answer":"As of August 30, 2026, differentiated tax credits by region are a proposal under consideration. Because relevant tax laws must be amended and subordinate regulations established, the implementation date, tax credit rates, and list of preferential regions must be confirmed in the final legislation."},{"question":"Can everyone receive a refund of up to KRW 5.6 million?","answer":"No. KRW 5.6 million is the calculated maximum based on donating the annual maximum of KRW 20 million to a region receiving the highest preferential rate and applying the stated tax credit rate. The actual benefit may be reduced depending on the final tax liability against which the credit can be applied and the results of applying other tax credits."},{"question":"Can I receive both a tax credit and a thank-you gift?","answer":"If the requirements are met, you may receive both a tax credit and a thank-you gift. The available gifts and the criteria for providing them vary by region, so they must be checked on Hometown Love e-um."},{"question":"Does a 30% thank-you gift mean that 30% of the donation is returned in cash?","answer":"No. The maximum cost of thank-you gifts must be checked in the latest guidance from Hometown Love e-um and the relevant local government. In practice, donors select designated items such as regional specialty products or vouchers, and they are not provided in cash."},{"question":"If I donate in 2026, can I receive the preferential tax credit rate for 2027?","answer":"Generally, the tax law in effect in the year of the donation applies. Unless a separate provision for retroactive application is finalized, the rates scheduled for 2027 cannot be considered applicable to donations made in 2026."},{"question":"How can I check which regions receive preferential treatment?","answer":"Preferential regions must be confirmed through the final legislation and the government's official designation list. Do not make assumptions solely because a region has a small population or is outside the Seoul metropolitan area; check the latest notices from Hometown Love e-um and the relevant government ministries."}],"sources":[{"url":"https://ilovegohyang.go.kr/","title":"Hometown Love e-um","type":"source"},{"url":"https://www.law.go.kr/법령/고향사랑기부금에관한법률","title":"Korea Law Information Center Act on Hometown Love Donations","type":"source"},{"url":"https://www.law.go.kr/법령/조세특례제한법","title":"Korea Law Information Center Restriction of Special Taxation Act","type":"source"},{"url":"https://www.law.go.kr/법령/지방세특례제한법","title":"Korea Law Information Center Act on Restriction on Special Cases Concerning Local Tax","type":"source"}],"images":[{"id":971,"url":"https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MTMyODcsInB1ciI6ImJsb2JfaWQifX0=--bef9b6e4fd177021b537e7307fd25feb02cfa6a2/ai-159f25e5.webp","is_representative":true,"generation_method":"ai_photo","license":"ai_generated","mime_type":"image/webp","translations":{"ko":{"alt":"지역 농산물 매장에서 답례품 상자 옆 태블릿의 지역 지도를 살펴보는 여성","caption":"한 여성이 지역 특산품과 함께 태블릿에서 기부 지역 정보를 확인하고 있다.","description":null},"en":{"alt":"Woman viewing a regional map on a tablet beside a gift box in a local produce shop","caption":"A woman checks regional donation information on a tablet next to a box of local products.","description":null},"ja":{"alt":"地域農産物店で返礼品の箱の横にあるタブレットの地域地図を見る女性","caption":"女性が地域特産品のそばでタブレットを使い、寄付先の地域情報を確認している。","description":null},"es":{"alt":"Mujer consultando un mapa regional en una tableta junto a una caja de productos locales","caption":"Una mujer revisa información regional sobre donaciones junto a una caja de productos locales.","description":null},"id":{"alt":"Perempuan melihat peta wilayah di tablet di samping kotak produk lokal","caption":"Seorang perempuan memeriksa informasi wilayah donasi di tablet bersama sekotak produk lokal.","description":null},"pt":{"alt":"Mulher consulta mapa regional em tablet ao lado de uma caixa de produtos locais","caption":"Uma mulher verifica informações regionais de doação ao lado de uma caixa de produtos locais.","description":null},"zh-hant":{"alt":"女子在農產品店查看平板上的地區地圖，旁邊放著地方特產禮盒","caption":"女子在地方特產禮盒旁透過平板查看捐款地區資訊。","description":null},"de":{"alt":"Frau betrachtet eine regionale Karte auf einem Tablet neben einer Kiste mit lokalen Produkten","caption":"Eine Frau prüft regionale Spendeninformationen neben einer Kiste mit lokalen Produkten.","description":null}}},{"id":972,"url":"https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MTMyOTMsInB1ciI6ImJsb2JfaWQifX0=--27daf83af9b38baecec9b616193780ca299db7cf/ai-33262756.webp","is_representative":false,"generation_method":"ai_image","license":"ai_generated","mime_type":"image/webp","translations":{"ko":{"alt":"권역별 한국 지도와 기부 동전, 세액공제 문서, 계산기, 달력, 답례품 상자 일러스트","caption":"고향사랑기부제의 지역별 기부와 세액공제 우대 추진안을 도식화했다.","description":null},"en":{"alt":"Regional map of South Korea with donation coins, tax forms, calculator, calendar, and gift box","caption":"The graphic illustrates regional donations and proposed tax credit incentives under the hometown donation program.","description":null},"ja":{"alt":"地域別に色分けした韓国地図と寄付コイン、税額控除書類、電卓、カレンダー、返礼品","caption":"ふるさと愛寄付制度の地域別寄付と税額控除の優遇案を図解している。","description":null},"es":{"alt":"Mapa regional de Corea del Sur con monedas de donación, formularios fiscales, calculadora, calendario y regalo","caption":"El gráfico representa las donaciones regionales y la propuesta de incentivos fiscales del programa de donación local.","description":null},"id":{"alt":"Peta wilayah Korea Selatan dengan koin donasi, dokumen pajak, kalkulator, kalender, dan kotak hadiah","caption":"Ilustrasi ini menggambarkan donasi daerah dan usulan insentif kredit pajak dalam program donasi kampung halaman.","description":null},"pt":{"alt":"Mapa regional da Coreia do Sul com moedas de doação, formulários fiscais, calculadora, calendário e presente","caption":"O gráfico ilustra doações regionais e a proposta de incentivos fiscais do programa de doação à terra natal.","description":null},"zh-hant":{"alt":"韓國分區地圖搭配捐款硬幣、稅額抵免文件、計算機、日曆與回禮盒","caption":"圖表呈現故鄉愛心捐款制度的地區捐款與稅額抵免優惠推動方案。","description":null},"de":{"alt":"Regionale Südkoreakarte mit Spendenmünzen, Steuerformularen, Rechner, Kalender und Geschenk","caption":"Die Grafik veranschaulicht regionale Spenden und geplante Steuervorteile im Heimatspendenprogramm.","description":null}}}],"published_at":"2026-08-30T19:58:22+09:00","updated_at":"2026-08-30T19:58:22+09:00","license":"cc_by","translation_status":"reviewed","available_locales":["ko","en","ja","es"],"data_locales":["ko","en","ja","es","id","pt","zh-hant","de"],"url":"https://injoys.com/en/articles/hometown-donation-tax-credit-2027-regional-rates-2"}