Taiwan Tax Calculator (2026)
Income tax rates and take-home pay for Taiwan
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Taiwan Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| 5% bracket | NT$0 - NT$590,000 | 5.0% |
| 12% bracket | NT$590,000 - NT$1,330,000 | 12.0% |
| 20% bracket | NT$1,330,000 - NT$2,660,000 | 20.0% |
| 30% bracket | NT$2,660,000 - NT$4,980,000 | 30.0% |
| 40% bracket | NT$4,980,000+ | 40.0% |
Personal allowance: NT$97,000
Labour Insurance Program (LIP)
| Bracket | Income Range | Rate |
|---|---|---|
| Labour Insurance employee contribution | NT$0+ | 1.0% |
National Health Insurance Program (NHIP)
| Bracket | Income Range | Rate |
|---|---|---|
| Health insurance employee contribution | NT$0+ | 2.3% |
Labour Pension Program (LPP)
| Bracket | Income Range | Rate |
|---|---|---|
| Labour Pension employee contribution | NT$0+ | 6.0% |
Income Basic Tax (IBT)
| Bracket | Income Range | Rate |
|---|---|---|
| IBT at 20% | NT$7,500,000+ | 20.0% |
Applies when income exceeds NT$7,500,000
Key Facts
Tax Year
2025
Currency
TWD
Top Rate
40.0%
Brackets
5 brackets
Allowance
NT$97,000
Social Contributions
3 items
Assumptions
- · Model assumes a resident alien/employee in Taiwan for 183+ days (full tax resident status).
- · Standard deduction of TWD 131,000 is used; itemised deductions not modelled.
- · Personal exemption of TWD 97,000 applied.
- · Basic living expense deduction (TWD 213,000 per person) applied if it exceeds other deductions.
- · Income Basic Tax (IBT) is modelled as a surcharge at 20% on taxable income exceeding TWD 7.5 million, assuming no add-back items or foreign-sourced income.
- · Social contributions include Labour Insurance Program (LIP), National Health Insurance Program (NHIP), and Labour Pension Program (LPP) for a resident employee.
- · Supplementary health insurance premium on bonuses is not modelled (assumed no bonus in base salary comparison).
- · Special deductions (salary expense deduction, dependent child tuition, disability, long-term care, rental payment) are not modelled for this representative single employee model.
- · No church tax or voluntary schemes included.
- · Employer-only social contributions excluded.
Frequently asked questions
How much income tax will I pay as an expat working in Taiwan?
Taiwan uses a progressive income tax system with five brackets ranging from 5% to 40%, depending on your taxable income. If you're a resident alien working in Taiwan for 183+ days, you'll be taxed on your worldwide income after applying a standard deduction of TWD 131,000 and a personal exemption of TWD 97,000. The exact amount depends on your salary level, but most employees in the lower brackets pay between 5% and 12% on their taxable income.
What social contributions do I need to pay as an employee in Taiwan?
As an employee in Taiwan, you contribute to three main programs: Labour Insurance Program (1% of gross income), National Health Insurance Program (2.3% of gross income), and Labour Pension Program (6% of gross income). These contributions are deductible from your taxable income, which reduces your overall tax burden. Together, these contributions total approximately 9.3% of your gross salary.
Is there an additional tax on high earners in Taiwan?
Yes, Taiwan has an Income Basic Tax (IBT) that applies as a 20% surcharge on taxable income exceeding TWD 7.5 million. This surcharge is separate from regular income tax and applies to high-earning individuals. If your taxable income falls below this threshold, you won't be subject to the IBT.
What deductions can I claim on my Taiwan income tax?
You can claim either a standard deduction of TWD 131,000 or a basic living expense deduction of TWD 213,000, whichever is more beneficial. You also receive a personal exemption of TWD 97,000 that reduces your taxable income. Special deductions such as dependent child tuition, disability, or rental payments may also apply depending on your personal circumstances, though these are not modeled in the basic calculator.
Do I pay different tax rates depending on which city or region I live in Taiwan?
No, Taiwan's income tax system is national and does not vary by region or city. The tax brackets and rates apply uniformly across the entire country regardless of whether you live in Taipei, Kaohsiung, or anywhere else in Taiwan. Social contributions and deductions are also standardized nationwide.
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