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 rates increase from 5% up to 25% on income above LAK 780 million. As an expat, you'll need to register for social security after 12 months of employment, though the default model assumes registration applies from year one.
Do I have to pay social security contributions in Laos?
Yes, employees in Laos must contribute 5.5% of their gross income to social security, which is capped at a maximum annual contribution 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 lowers your overall tax burden.
What's the tax-free income threshold in Laos?
The first LAK 15.6 million of your annual gross income is completely tax-free in Laos. This means you only start paying income tax once your earnings exceed that amount, making it a relatively high threshold compared to many countries.
Can I claim deductions for dependents in Laos?
Yes, you can claim 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 is not included in the default calculator model, so you may want to verify your eligibility based on your specific situation.
Are there any provincial or local taxes I need to pay in Laos?
No, Laos does not have any provincial or local income taxes. Your only income tax obligations are the national progressive tax brackets and the 5.5% social security contribution, making the tax system relatively straightforward across the entire country.
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