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 tax system with five income tax brackets ranging from 5% to 40%. If you're a resident alien employed in Taiwan for 183+ days, you'll be taxed on your worldwide income after deductions. The first TWD 590,000 of taxable income is taxed at 5%, with rates increasing to 12%, 20%, 30%, and finally 40% on income above TWD 4,980,000.
What deductions can I claim on my Taiwan income tax?
You can claim a standard deduction of TWD 131,000, plus a personal exemption of TWD 97,000. Taiwan also offers a basic living expense deduction of TWD 213,000 per person, which is applied if it exceeds your other deductions. The calculator uses these standard allowances for a representative employee model, though special deductions like salary expense deduction or dependent child tuition may apply to your specific situation.
What are Taiwan's social contribution rates for employees?
As an employee in Taiwan, you contribute to three 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 and total 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 is a separate calculation from the standard income tax brackets and is designed to ensure higher earners pay a minimum level of tax.
Do I pay different tax rates depending on which city I work in Taiwan?
No, Taiwan's income tax system is national and does not vary by region or city. All employees and residents pay the same progressive tax rates and contribute to the same national social programs regardless of where they work within Taiwan.
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