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 will I pay as an expat working in Laos?
Laos uses a progressive tax system with six brackets ranging from 0% to 25%. The first LAK 15.6 million of annual income is tax-free, then you pay 5% on income up to LAK 60 million, 10% up to LAK 180 million, and rates increase to 25% on income above LAK 780 million. As an expat, you'll need to register for social security after 12 months, which reduces your taxable income through a 5.5% employee contribution capped at LAK 247,500 annually.
Do I need to pay social security contributions in Laos?
Yes, if you're employed in Laos, you must contribute 5.5% of your gross income to social security, capped at LAK 247,500 per year. This contribution is deductible from your income before income tax is calculated, which effectively lowers your overall tax burden. Expatriates are required to register for social security after working in Laos for 12 months.
What is the tax-free income threshold in Laos?
The first LAK 15.6 million of your annual income is completely tax-free in Laos. After that threshold, you enter the 5% tax bracket on income between LAK 15.6 million and LAK 60 million. This tax-free threshold is one of the most important factors in calculating your take-home pay.
Are there state or local income taxes in Laos?
No, there are no provincial or local income taxes in Laos. The only income tax you pay is the national personal income tax based on the progressive brackets set by the central government, plus the mandatory 5.5% social security contribution.
Can I claim deductions for dependents in Laos?
Yes, Laos allows a personal dependent deduction of up to LAK 5 million per dependent, with a maximum of three dependents (spouse, parent, or child) for a total deduction of up to LAK 15 million. However, this deduction depends on your family status and filing situation, so you should verify your eligibility with local tax authorities or a tax advisor.
What is the highest income tax rate in Laos?
The highest income tax rate in Laos is 25%, which applies to annual income above LAK 780 million. Before reaching this top bracket, you'll pass through five other brackets with rates of 0%, 5%, 10%, 15%, and 20%, so the tax system is designed to be progressive with higher earners paying higher rates.
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