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 has a progressive income tax system with five brackets ranging from 5% to 40%, depending on your taxable income. After deducting the personal exemption of TWD 97,000 and the standard deduction of TWD 131,000, you'll pay tax on the remaining income according to these brackets. If you earn over TWD 4.98 million, you'll be in the top 40% bracket.
What social contributions do I need to pay as an employee in Taiwan?
As an employee in Taiwan, you contribute to three main social programs: the Labour Insurance Program at 1% of gross income, the National Health Insurance Program at 2.3% of gross income, and the Labour Pension Program at 6% of gross income. These contributions are deductible from your taxable income, which reduces your overall tax burden.
What's the take-home pay after taxes and social contributions in Taiwan?
Your take-home pay depends on your gross income and deductions. Social contributions totaling approximately 9.3% (1% + 2.3% + 6%) are deducted from your gross income along with income tax. For example, at TWD 1 million gross income, after all deductions and taxes, a resident employee would retain a significant portion, though the exact amount depends on the progressive tax brackets applied.
Is there an additional tax if I earn a very high income 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 surcharge on top of your regular income tax and is designed to ensure high earners contribute proportionally to the tax system.
Do I need to qualify as a tax resident to pay these rates?
Yes, these tax rates apply if you are a resident alien or employee in Taiwan for 183 or more days in a year, which grants you full tax resident status. As a resident, you're subject to Taiwan's progressive income tax system on your worldwide income, along with the mandatory social contributions for employees.
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