Taiwan Tax Calculator (2026)
Income tax rates and take-home pay for Taiwan
Taiwan Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| Bracket 1 | NT$0 - NT$590,000 | 5.0% |
| Bracket 2 | NT$590,000 - NT$1,330,000 | 12.0% |
| Bracket 3 | NT$1,330,000 - NT$2,660,000 | 20.0% |
| Bracket 4 | NT$2,660,000 - NT$4,980,000 | 30.0% |
| Bracket 5 | NT$4,980,000+ | 40.0% |
Personal allowance: NT$228,000
Labour Insurance Program (LIP)
| Bracket | Income Range | Rate |
|---|---|---|
| Standard Rate | NT$0 - NT$549,600 | 2.2% |
| Above Cap | NT$549,600+ | 0.0% |
Capped at NT$12,091 per year
National Health Insurance Program (NHIP)
| Bracket | Income Range | Rate |
|---|---|---|
| Standard Rate | NT$0 - NT$2,634,000 | 1.6% |
| Above Cap | NT$2,634,000+ | 0.0% |
Capped at NT$40,853 per year
Key Facts
Tax Year
2025
Currency
TWD
Top Rate
40.0%
Brackets
5 brackets
Allowance
NT$228,000
Social Contributions
2 items
Assumptions
- · Resident individual tax rates for the 2024-2025 tax cycle (return filing 2025).
- · Standard relief includes the standard deduction for single taxpayers (TWD 131,000) and the personal exemption (TWD 97,000) totaling TWD 228,000.
- · The Special Deduction for Salaries or Wages is modeled as an income-based deduction capped at TWD 218,000.
- · No subnational income taxes exist in Taiwan.
- · Social contribution rates (LIP 2.2%, NHIP 1.551%) represent standard employee-only portions based on 2024 statutory rates as these were mentioned by name in the source without specific percentages.
- · Excluded Income Basic Tax (IBT) as it is an alternative minimum tax regime.
Frequently asked questions
How much income tax do I pay in Taiwan if I'm a resident?
Taiwan has a progressive income tax system with 5 brackets ranging from 5% to 40%. After applying a standard relief of TWD 228,000 (which includes the standard deduction and personal exemption), your taxable income is taxed at rates starting at 5% for income up to TWD 590,000, then 12%, 20%, 30%, and finally 40% for income above TWD 4,980,000. The exact amount depends on your total income and which brackets you fall into.
What deductions can I claim on my Taiwan income tax return?
The main deductions available are a standard relief of TWD 228,000 and a Special Deduction for Salaries or Wages, which allows you to deduct up to TWD 218,000 of your wage income. These deductions reduce your taxable income before the tax brackets are applied. Note that social contributions like Labour Insurance Program and National Health Insurance are not tax-deductible.
Do I have to pay social contributions if I work in Taiwan?
Yes, as an employee in Taiwan you typically pay two social contributions: the Labour Insurance Program (LIP) at 2.2% of your gross income (capped at TWD 549,600) and the National Health Insurance Program (NHIP) at 1.551% of your gross income (capped at TWD 2,634,000). These are mandatory contributions deducted from your salary and are separate from your income tax.
Is there a state or local income tax on top of Taiwan's national income tax?
No, Taiwan does not have subnational income taxes. The income tax rates and brackets shown apply uniformly across the entire country, so you only pay the national income tax rate based on your income level.
How does Taiwan's tax system treat expats and remote workers?
Expats and remote workers are typically taxed as residents if they stay in Taiwan for 183 days or more in a tax year, which means they are subject to the same progressive income tax brackets (5% to 40%), standard relief, wage deductions, and social contributions as local residents. If you earn income from outside Taiwan while being a resident, different rules may apply, so it's best to consult a local tax professional for your specific situation.
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