Laos Tax Calculator (2026)
Income tax rates and take-home pay for Laos
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Laos Income Tax Brackets (2026)
| Bracket | Income Range | Rate |
|---|---|---|
| Tax-free threshold | LAK 0 - LAK 15,600,000 | 0.0% |
| 5% bracket | LAK 15,600,000 - LAK 60,000,000 | 5.0% |
| 10% bracket | LAK 60,000,000 - LAK 180,000,000 | 10.0% |
| 15% bracket | LAK 180,000,000 - LAK 300,000,000 | 15.0% |
| 20% bracket | LAK 300,000,000 - LAK 780,000,000 | 20.0% |
| 25% bracket | LAK 780,000,000+ | 25.0% |
Social Security Contribution (Employee)
| Bracket | Income Range | Rate |
|---|---|---|
| 5.5% employee contribution | LAK 0+ | 5.5% |
Capped at LAK 247,500 per year
Key Facts
Tax Year
2026
Currency
LAK
Top Rate
25.0%
Brackets
6 brackets
Tax-Free Threshold
LAK 15,600,000
Social Contributions
1 item
Assumptions
- · Model uses annual PIT brackets as the primary calculation basis for salary comparison.
- · Social security contributions (5.5% employee) are deductible from gross income before PIT calculation, capped at LAK 4.5 million annual base.
- · Personal deduction of up to LAK 5 million per dependent (spouse, parent, or child, max 3 persons = LAK 15 million) is available but excluded from this default model as it depends on family status; representative single employee with no dependents assumed.
- · Expatriates must register in social security after 12 months; default model assumes registration applies from year 1.
- · PIT brackets apply to annual gross income; monthly brackets exist but are not modeled separately as this is for annual salary comparison.
- · No provincial or local income taxes in Lao PDR.
- · Interest on bank deposits is exempt; dividend WHT (10%) applies only to investment income, not employment income, and is excluded.
- · Employer social security contributions (6%) are excluded as they are not part of employee net income.
Frequently asked questions
How much income tax do I pay in Laos if I'm an expat?
Laos has a progressive income tax system with six brackets ranging from 0% to 25%. Income up to LAK 15.6 million is tax-free, then rates increase from 5% on income between LAK 15.6-60 million up to 25% on income above LAK 780 million. Expatriates must register in social security after 12 months, though the default calculation assumes registration applies from year one.
What is the social security contribution rate for employees in Laos?
Employees in Laos contribute 5.5% of their gross income to social security, with a maximum annual contribution capped at LAK 247,500. This contribution is deductible from your gross income before income tax is calculated, which reduces your overall tax burden.
Do I get any personal deductions or tax relief in Laos?
Yes, you can claim a personal dependent deduction of up to LAK 5 million per dependent (spouse, parent, or child), with a maximum of three dependents for a total of LAK 15 million. However, this deduction depends on your family status and is not included in the default calculator model for a single employee with no dependents.
Are there provincial or local income taxes in Laos?
No, there are no provincial or local income taxes in Lao PDR. Only the national progressive income tax system applies, so your tax rate depends solely on your annual gross income and which bracket it falls into.
How is my take-home pay calculated in Laos?
Your take-home pay is calculated by subtracting both the 5.5% employee social security contribution and progressive income tax from your gross salary. The social security contribution reduces your taxable income first, then income tax is applied to the remaining amount based on which bracket your income falls into.
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