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 working in Taiwan for 183+ days or more, you'll be taxed on your worldwide income after deducting TWD 131,000 (standard deduction) and TWD 97,000 (personal exemption). Your actual tax rate depends on your income level, but starts at just 5% on your first TWD 590,000 of taxable income.
What social contributions do I need to pay as an employee in Taiwan?
As an employee in Taiwan, you'll contribute to three mandatory social 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). All three contributions are tax-deductible, which reduces your taxable income and your overall tax burden.
What's the difference between the standard deduction and the basic living expense deduction?
Taiwan allows you to claim either a standard deduction of TWD 131,000 or a basic living expense deduction of TWD 213,000, whichever is greater. The basic living expense deduction is more generous, so most individual employees benefit from using that amount to reduce their taxable income.
When does Taiwan's Income Basic Tax (IBT) apply?
The Income Basic Tax is an additional surcharge that applies when your taxable income exceeds TWD 7.5 million. If you cross that threshold, you'll pay an extra 20% on the amount above TWD 7.5 million. This surcharge is designed to ensure high earners pay a minimum level of tax.
How many income tax brackets does Taiwan have?
Taiwan has five progressive income tax brackets with rates of 5%, 12%, 20%, 30%, and 40%. The brackets range from TWD 0 up to TWD 590,000 at the lowest rate, increasing to over TWD 4.98 million at the highest 40% rate, giving the country a fairly steep progressive structure for high earners.
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