How to calculate personal income tax in Vietnam (2026)
Personal income tax (PIT) applies to employees whose taxable income exceeds their family deductions. This calculator follows the Law on Personal Income Tax No. 109/2025/QH15, whose 5-bracket schedule and higher family deductions apply to salaries from the 2026 tax year.
1. PIT formula
Assessable income = Taxable income − Deductions
PIT = Assessable income × Progressive rate
2. Deductions
- Personal deduction: 15,500,000 ₫ per month (186,000,000 ₫ per year) from the 2026 tax year.
- Dependent deduction: 6,200,000 ₫ per month for each dependent.
- Compulsory insurance: social insurance 8%, health insurance 1.5%, unemployment insurance 1% (10.5% in total; social and health insurance are capped at 20 times the base salary, 50,600,000 ₫ from 1 July 2026).
- Approved charitable, humanitarian and education donations.
3. Progressive tax brackets (5 levels from 2026)
| Bracket | Monthly assessable income (₫) | Rate | Quick formula |
|---|---|---|---|
| 1 | Up to 10 million | 5% | Taxable × 5% |
| 2 | Over 10 to 30 million | 10% | (Taxable × 10%) − 500,000 |
| 3 | Over 30 to 60 million | 20% | (Taxable × 20%) − 3,500,000 |
| 4 | Over 60 to 100 million | 30% | (Taxable × 30%) − 9,500,000 |
| 5 | Over 100 million | 35% | (Taxable × 35%) − 14,500,000 |
4. Residents vs non-residents
You are a tax resident if you stay in Vietnam for 183 days or more in a calendar year (or 12 consecutive months from arrival), or have a permanent residence in Vietnam. Residents use the progressive brackets above. Non-residents pay a flat 20% on Vietnam-sourced employment income without any deductions.
5. Worked example
An employee earns 40,000,000 ₫ a month, pays 10.5% compulsory insurance (4,200,000 ₫) and has 1 dependent.
- Deductions: insurance 4,200,000 + personal 15,500,000 + 1 dependent 6,200,000 = 25,900,000 ₫.
- Assessable income: 40,000,000 − 25,900,000 = 14,100,000 ₫ (bracket 2).
- PIT: (14,100,000 × 10%) − 500,000 = 910,000 ₫ per month.
Frequently asked questions
What is the personal deduction in Vietnam in 2026?
From the 2026 tax year, each tax resident can deduct 15,500,000 ₫ per month (186,000,000 ₫ per year) for themselves, plus 6,200,000 ₫ per month for each registered dependent (Resolution 110/2025/UBTVQH15).
Who counts as a dependent for family deduction?
Children under 18, or over 18 who are disabled or unable to work, and parents or parents-in-law who are outside working age or have no income (or average monthly income under 1,000,000 ₫). Dependents must be registered with the tax authority.
How are non-residents taxed in Vietnam?
Non-residents (in Vietnam for less than 183 days in a tax year and without a permanent residence) pay a flat 20% on Vietnam-sourced employment income, with no family or insurance deductions. This calculator is for tax residents.
When is the annual PIT finalization deadline?
Individuals who finalize their tax directly with the tax office must file by the last day of the fourth month after the end of the calendar year, usually April 30.