Laos Tax Calculator (2026)
Income tax rates and take-home pay for Laos
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
What is the income tax rate in Laos?
Laos has a progressive 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 million and LAK 60 million, up to 25% on income above LAK 780 million. The rate you pay depends on your total annual income level.
Do I have to pay social security contributions in Laos if I'm an expat?
Yes, expatriates must register for social security after 12 months of employment, though the default model assumes this applies from year one. Employees contribute 5.5% of gross income to social security, with a maximum annual contribution of LAK 247,500. This contribution is deductible from your gross income before income tax is calculated.
What is the take-home pay for a typical salary in Laos?
Your take-home pay depends on your gross salary and which tax bracket it falls into. The calculator on this page shows exactly what you'll receive after both income tax and the 5.5% social security contribution are deducted. For example, someone earning LAK 60 million annually would pay tax on the portion above LAK 15.6 million at the applicable rates.
Are there personal deductions or allowances I can claim 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 calculator uses a default model for a single employee with no dependents; if your situation differs, your actual tax liability may be lower.
Are there state or local income taxes in Laos I need to pay?
No, there are no provincial or local income taxes in Laos. Your only income tax obligations are the national progressive income tax and the 5.5% social security contribution deducted from your salary.
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