Taiwan Tax Calculator (2026)
Income tax rates and take-home pay for Taiwan
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
What are the income tax brackets in Taiwan?
Taiwan has five progressive income tax brackets ranging from 5% to 40%. The rates are: 5% on income up to TWD 590,000; 12% from TWD 590,000 to TWD 1,330,000; 20% from TWD 1,330,000 to TWD 2,660,000; 30% from TWD 2,660,000 to TWD 4,980,000; and 40% on income above TWD 4,980,000. These brackets apply to resident aliens and employees who have been in Taiwan for 183 or more days in a tax year.
How much will I pay in social contributions as an employee in Taiwan?
As an employee in Taiwan, you'll contribute to three main social programs: the Labour Insurance Program (1% of gross income), the National Health Insurance Program (2.3% of gross income), and the Labour Pension Program (6% of gross income). All three contributions are deductible from your taxable income, so they reduce your overall tax burden. In total, you'll pay approximately 9.3% of your gross income toward these mandatory social contributions.
What deductions can I claim on my Taiwan income tax return?
Taiwan offers a standard deduction of TWD 131,000 for all taxpayers, plus a personal exemption of TWD 97,000. Additionally, there's a basic living expense deduction of TWD 213,000 per person that applies if it exceeds your other deductions. The calculator assumes these standard deductions rather than itemized deductions, which simplifies the filing process for most employees.
Is there a surcharge tax for high earners in Taiwan?
Yes, Taiwan has an Income Basic Tax (IBT) that functions as a surcharge on high earners. If your taxable income exceeds TWD 7.5 million, you'll pay an additional 20% on the amount above that threshold. This surcharge applies in addition to your regular income tax and is designed to ensure higher earners contribute proportionally more to the tax system.
How is my take-home pay calculated in Taiwan?
Your take-home pay is calculated by starting with your gross salary, subtracting your mandatory social contributions (approximately 9.3% total), then subtracting your income tax based on the progressive brackets after applying deductions and personal exemptions. If your taxable income exceeds TWD 7.5 million, you'll also owe the Income Basic Tax surcharge of 20% on the excess amount.
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