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Income tax in Vietnam 2026
The 2026 scale is measured monthly: 5% up to VND 10 million of taxable income, rising in four steps to 35% above VND 100 million — after the VND 15.5 million personal deduction has already come off.
Residents (183+ days, or a home or long lease in Vietnam) owe tax on worldwide income; non-residents pay a flat 20% on Vietnamese salaries.
At a glance
- top rate
- 35% above VND 100 million/month
- entry band
- 5% on the first VND 10 million/month of taxable income
- tax year basis
- Calendar year
- filing deadline
- 31 March through the employer; end of April filing yourself
- residency basis
- Worldwide; resident at 183+ days or a habitual residence/183-day lease
- regime flag
- 5-year exemption for high-quality digital-industry personnel; science and innovation pay exempt
Rates
Salary scale (2026, monthly taxable income)
| Average monthly income (VND) | Rate | Tax on all bands below (VND) |
|---|---|---|
| 0 – 10,000,000 | 5% | 0 |
| 10,000,001 – 30,000,000 | 10% | 500,000 |
| 30,000,001 – 60,000,000 | 20% | 2,500,000 |
| 60,000,001 – 100,000,000 | 30% | 8,500,000 |
| Over 100,000,000 | 35% | 20,500,000 |
Marginal rates apply within each band.
Business income of residents (2026, by annual revenue)
| Annual revenue (VND) | Rate | Base |
|---|---|---|
| Up to 500 million | 0% | Exempt |
| 500 million – 3 billion | 15% | Revenue minus expenses (or elect flat 0.5-5% of turnover by sector) |
| 3 – 50 billion | 17% | Revenue minus expenses |
| Over 50 billion | 20% | Revenue minus expenses |
Thresholds & allowances
- Personal deductionVND 15.5 million/month (186 million/year)
Up from 11 million; income at or below the deduction is tax-free
- Dependant deductionVND 6.2 million/month each
With supporting documents; up from 4.4 million
- Insurance contributions≈10.5% of contract salary
Social, health and unemployment insurance are deductible
- Voluntary retirement fundVND 1 million/month
Deductible cap for the employee; employer side capped at 3 million
- Housing benefit cap15% of taxable income
Employer-paid rent is taxable only up to this share; employer-built industrial-zone housing is exempt
- Approved donationsDeductible
To state-recognized charitable and humanitarian organizations
Residency
Residency trigger
You are resident after 183 days in Vietnam in the calendar year or any rolling 12 months, or with a registered residence or a rental contract of 183 days or more. Residents pay on worldwide income; arrival-year residents are taxed from the month of first arrival.
Non-resident treatment
Non-residents pay a flat 20% on Vietnam-source employment income with no deductions, and sector rates of 1-5% on business turnover; foreign income is out of scope.
Notes
- Most employees settle through employer withholding and the 31 March finalization; filing yourself pushes the deadline to the end of April.
- There is no joint filing for couples — everyone is assessed individually.
- One-off income (transfers, prizes, inheritances) is declared per transaction within 10 days of the income arising.
- Overtime and night-shift premiums above normal pay rates are exempt, as are one annual home-leave ticket and school fees the employer pays for a foreign employee's children in Vietnam.
- Foreign experts on non-refundable official development assistance (ODA) projects pay no Vietnamese income tax; business losses get no relief under the personal tax regime.
FAQ
What is the top income tax rate in Vietnam?
35%, on taxable income above VND 100 million a month under the 2026 scale — the threshold rose from VND 80 million with the new law.
How much can I earn tax-free in Vietnam?
VND 15.5 million a month (186 million a year) as a personal deduction, plus VND 6.2 million a month per dependant — before any tax applies.
Do foreigners pay Vietnamese tax on worldwide income?
Only residents do — 183+ days or a long-term home triggers residence. Non-residents pay a flat 20% on Vietnamese employment income.
Figures: tax year 2026, compiled from public sources. Not tax advice.