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%. The first LAK 15.6 million of annual income is tax-free, then you pay 5% on income between LAK 15.6 million and LAK 60 million, with rates increasing up to 25% on income above LAK 780 million. If you're an expatriate, you must register in the social security system after 12 months of employment, which affects your tax calculation from year one in this model.
What are social security contributions in Laos and are they deductible?
Employees in Laos pay a 5.5% social security contribution on their gross income, with a maximum annual contribution cap of LAK 247,500. The good news is that this contribution is deductible from your gross income before your personal income tax is calculated, which effectively reduces your taxable income.
Can I claim personal deductions for dependents in Laos?
Yes, you can claim a personal deduction of up to LAK 5 million per dependent, with a maximum of three dependents (spouse, parent, or child) for a total deduction of LAK 15 million. This deduction is applied after calculating your tax liability and can significantly reduce your overall tax burden if you have dependents.
Are there any provincial or local income taxes I need to pay in Laos?
No, there are no provincial or local income taxes in Laos. You only need to pay the national personal income tax based on the six progressive brackets, plus your mandatory social security contribution.
What happens to interest and investment income in Laos?
Interest earned on bank deposits is completely exempt from taxation in Laos. However, if you earn dividend income from investments, a 10% withholding tax applies to that investment income, though this does not apply to employment income like salaries or wages.
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