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 thresholdLAK 0 - LAK 15,600,0000.0%
5% bracketLAK 15,600,000 - LAK 60,000,0005.0%
10% bracketLAK 60,000,000 - LAK 180,000,00010.0%
15% bracketLAK 180,000,000 - LAK 300,000,00015.0%
20% bracketLAK 300,000,000 - LAK 780,000,00020.0%
25% bracketLAK 780,000,000+25.0%

Social Security Contribution (Employee)

Bracket Income Range Rate
5.5% employee contributionLAK 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

What is the top income tax rate in Laos?

The highest marginal income tax rate in Laos is 0.3%. Your effective tax rate will be lower depending on your income level.

How many tax brackets does Laos have?

Laos has 6 income tax brackets. Income is taxed in brackets - you only pay the higher rate on income above each threshold, not on your entire income.

How is take-home pay calculated in Laos?

Take-home pay in Laos is your gross salary minus income tax, social contributions, and any applicable surcharges. Use the calculator above to see an exact breakdown for your salary.

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