Vietnam Personal Income Tax 2026: Complete Guide
Quick Answer
Vietnam personal income tax in 2026 applies progressive resident rates from 5% to 35% on monthly taxable income, overseen by the tax authorities. You are a resident after 183 days and taxed on worldwide income. Residents deduct VND 15.5 million monthly personally plus VND 6.2 million per dependent, while non-residents pay a flat 20%.
Rates as of 2026. Verify with official sources before acting.
Vietnam taxes residents on a progressive scale from 5% to 35%, applied to monthly taxable income after generous personal and dependent deductions. Non-residents are treated very differently, paying a flat 20% on Vietnam-source employment income only. This guide explains the PIT rates, the residency test, the family deductions that lower your bill, how foreigners are taxed, and the filing rules.
How Does Vietnam Personal Income Tax Work?
Personal income tax, known as PIT, is charged on employment income after subtracting compulsory insurance contributions and the personal and dependent deductions. What remains is your taxable income, and the progressive rates are applied on a monthly basis, since most tax is withheld from monthly salary. Only the portion of income within each band is taxed at that band's rate.
Employers withhold PIT from salaries and remit it to the tax authority monthly or quarterly. After the year ends, an annual finalisation reconciles the tax withheld against the tax actually due, either handled by the employer or filed by the individual, with any shortfall paid or excess refunded.
What Are the Vietnam PIT Rates for 2026?
The following five bands apply to monthly taxable salary income for tax residents from the 2026 tax period, under Law 109/2025/QH15, in force from 1 July 2026, according to the government summary of the law and its published rate table. They replace the old seven bands, which still applied to 2025 income. These bands are administered by the Vietnam tax authority.
| Monthly Taxable Income (VND) | Rate |
|---|---|
| 0 to 10,000,000 | 5% |
| 10,000,001 to 30,000,000 | 10% |
| 30,000,001 to 60,000,000 | 20% |
| 60,000,001 to 100,000,000 | 30% |
| Above 100,000,000 | 35% |
Remember that these bands apply to taxable income, which is what is left after the personal deduction, dependent deductions, and insurance are removed. Someone earning VND 30 million a month with no dependents would first subtract the VND 15.5 million personal deduction and their insurance, leaving a much smaller figure to which the low bands apply. Monthly taxable income of VND 40 million, for example, is taxed VND 500,000 on the first VND 10 million (5%), VND 2,000,000 on the next VND 20 million (10%), and VND 2,000,000 on the last VND 10 million (20%), which is VND 4.5 million.
What Family Deductions Can You Claim?
Vietnam uses a family circumstance deduction system that meaningfully reduces taxable income. You can confirm the current deduction amounts with the Vietnam GDT. The two main components from the 2026 tax period are below. The 2025 finalisation still used VND 11 million and VND 4.4 million.
- Personal deduction: VND 15,500,000 per month for the taxpayer
- Dependent deduction: VND 6,200,000 per month for each registered dependent
Dependents can include children under 18, children in full-time study, a non-working spouse, or parents who are unable to work, subject to registration and supporting documents. On top of these, compulsory social insurance, health insurance, and unemployment insurance contributions are deducted before tax is calculated. A worker supporting two dependents therefore shields VND 15.5 million plus two lots of VND 6.2 million, which is VND 27.9 million a month, before any tax applies.
Comparing options across the region? See how pay and prices stack up in our Asia salary comparison and cost of living in Asia guide.
Who Is a Tax Resident in Vietnam?
You are a Vietnamese tax resident if you meet either of two tests. The first is presence: being in Vietnam for 183 days or more within a calendar year or within 12 consecutive months from your date of arrival. The second is having a regular place of residence in Vietnam, either a registered permanent residence or a leased property occupied for 183 days or more in the tax year.
Residents are taxed on their worldwide income at the progressive rates. Non-residents are taxed only on income sourced in Vietnam, and for employment income this is done at a flat rate rather than the progressive scale.
How Are Foreigners Taxed in Vietnam?
Foreigners are taxed according to the same residency framework as everyone else. A foreigner who becomes a tax resident pays the progressive 5% to 35% rates on worldwide income and can claim the personal and dependent deductions like a local. A foreigner who is a non-resident pays a flat 20% on Vietnam-source employment income, with no personal deductions available. We could not open the full text of the law, so the 20% rate and the residence tests here are not verified, check the official site.
In the first year of arrival, the 12-month rolling test matters, because a foreigner may be a resident for a 12-month period that spans two calendar years. Double taxation agreements between Vietnam and many countries can reduce or eliminate double taxation, so foreigners with income taxed elsewhere should check the relevant treaty.
When Must Tax Be Filed?
Monthly or quarterly withholding is handled by the employer during the year. The annual PIT finalisation is where the final position is settled. If your employer finalises on your behalf, the deadline is the last day of the third month after the tax year ends, according to the tax authority. If you finalise directly, for example because you had more than one employer, the deadline is the last day of the fourth month, generally April 30. Filing is done through the tax authority system, and refunds for over-withheld tax are claimed as part of the finalisation.
Frequently Asked Questions
What are the Vietnam personal income tax rates for 2026?
From the 2026 tax period, residents pay progressive monthly rates on salary: 5% up to VND 10 million, 10% on 10 to 30 million, 20% on 30 to 60 million, 30% on 60 to 100 million, and 35% above 100 million of monthly taxable income.
Who is a tax resident in Vietnam?
You are a tax resident if you spend 183 days or more in Vietnam within a calendar year or 12 consecutive months, or if you have a permanent or leased residence there for 183 days or more. Residents are taxed on worldwide income; non-residents pay only on Vietnam-source income.
What family deductions are available in Vietnam?
From the 2026 tax period, residents receive a personal deduction of VND 15.5 million per month and a dependent deduction of VND 6.2 million per month for each registered dependent, such as a child or non-working parent. Compulsory social, health, and unemployment insurance contributions are also deducted before tax.
How are foreigners taxed in Vietnam?
Foreigners who are tax residents pay the same progressive rates on worldwide income and can claim the personal and dependent deductions. Foreigners who are non-residents pay a flat 20% on Vietnam-source employment income only, with no deductions applied.
When must Vietnam personal income tax be filed?
Employers withhold and remit PIT monthly or quarterly. Individuals who must file an annual finalisation do so by the last day of the fourth month after year end if self-filing, generally April 30, or by the last day of the third month if the employer finalises on their behalf.