Taiwan Individual Income Tax 2026: Brackets, Deductions and Filing Guide
Taiwan taxes individuals on a progressive five-bracket system from 5% to 40%, with generous exemptions and deductions that leave many middle-income earners paying surprisingly little. Whether you are a foreign professional on an Employment Gold Card, a newly arrived spouse, or a Taiwanese resident planning the May filing season, the mechanics are the same: add up your income, subtract exemptions and deductions, apply the bracket rates to the net amount, and file between May 1 and May 31. This guide covers the 2025 tax year (filed in May 2026) and the newly announced 2026 figures (filed in May 2027), plus the 183-day residency rule that decides whether you are taxed like a local or withheld like a visitor.
How the tax is calculated
The formula is straightforward:
Gross income โ exemptions โ deductions โ basic living expense differential = net taxable income
The net amount is then run through the progressive brackets โ only the slice of income inside each bracket is taxed at that bracket's rate. The quick-calculation method multiplies total net income by the top applicable rate and subtracts the "progressive difference" for that bracket.
Exemptions, deductions and basic living expense
For the 2025 tax year (filed May 2026), the key figures announced by the Ministry of Finance are:
| Item | 2025 tax year (filed May 2026) | 2026 tax year (filed May 2027) |
|---|---|---|
| Personal exemption (per person) | NT$97,000 | NT$101,000 |
| Exemption, age 70+ (self, spouse, dependent lineal ascendants) | NT$145,500 | NT$151,500 |
| Standard deduction โ single | NT$131,000 | NT$136,000 |
| Standard deduction โ married filing jointly | NT$262,000 | NT$272,000 |
| Salary / wage special deduction (per earner) | NT$218,000 | NT$227,000 |
| Disability special deduction (per person) | NT$218,000 | NT$227,000 |
| Basic living expense (per person) | NT$210,000 | announced annually |
For 2026 the Ministry of Finance also adjusted the brackets and the fixed retirement-income exemption; the figures above for 2026 come from the Ministry's official announcement of 115ๅนดๅบฆ amounts. A single salaried worker with no dependents pays zero tax on 2025 income up to NT$446,000 (97,000 + 131,000 + 218,000) โ the widely cited "tax-free threshold" for office workers.
Beyond the standard deduction, taxpayers can itemize instead: donations, personal insurance premiums, medical and childbirth expenses, disaster losses, and mortgage interest on an owner-occupied home. Special deductions also include savings-and-investment (up to NT$270,000), preschool children (NT$150,000 for the first child, NT$225,000 for the second and beyond, under age 6), long-term care (NT$120,000), education tuition (NT$25,000 per child in college), and since 2025, rent payments moved from itemized to a special deduction capped at NT$180,000 with an income-based phase-out.
The five tax brackets
Rates never change โ 5%, 12%, 20%, 30%, 40% โ but the bracket boundaries are indexed to consumer prices and move most years.
2025 tax year (filed May 2026):
| Net taxable income (NT$) | Rate | Progressive difference |
|---|---|---|
| 0 โ 590,000 | 5% | 0 |
| 590,001 โ 1,330,000 | 12% | 41,300 |
| 1,330,001 โ 2,660,000 | 20% | 147,700 |
| 2,660,001 โ 4,980,000 | 30% | 413,700 |
| 4,980,001 and above | 40% | 911,700 |
2026 tax year (filed May 2027, per Ministry of Finance announcement):
| Net taxable income (NT$) | Rate | Progressive difference |
|---|---|---|
| 0 โ 610,000 | 5% | 0 |
| 610,001 โ 1,380,000 | 12% | 42,700 |
| 1,380,001 โ 2,770,000 | 20% | 153,100 |
| 2,770,001 โ 5,190,000 | 30% | 430,100 |
| 5,190,001 and above | 40% | 949,100 |
Example: a single employee with 2025 gross salary of NT$1,000,000. Net income = 1,000,000 โ 97,000 โ 131,000 โ 218,000 = NT$554,000, all in the 5% bracket. Tax = 554,000 ร 5% = NT$27,700.
Resident vs non-resident: the 183-day rule
Your tax treatment hinges on how many days you are physically present in Taiwan during the calendar year (January 1 to December 31), counted from passport stamps โ the arrival day is excluded, the departure day is counted, and days are recalculated fresh every year with no cross-year carryover.
- 183 days or more: resident. You are taxed like a Taiwanese national โ worldwide income, full exemptions and deductions, and you must file a return the following May.
- Fewer than 183 days: non-resident. Taiwan-source income is taxed by withholding at source and there is generally no return to file. Salary is withheld at 6% if your full month's pay is at or below 1.5ร the statutory minimum wage, and 18% if above. If you stay 90 days or fewer, withholding income needs no filing at all; between 91 and 182 days, non-withholding Taiwan-source income must be declared before departure.
A common trap for newcomers: arriving in, say, September means you cannot reach 183 days that year, so your first partial year is taxed at the flat non-resident withholding rates โ often heavier than the resident brackets would be. Employers withhold based on your expected stay shown on your visa or residence permit, and reconcile if your actual days differ.
Filing: May 1 to May 31
Every year, resident taxpayers file the prior year's return between May 1 and May 31. The tax authority's online filing system (with a mobile app and English interface for foreigners) pre-fills most salary, interest, and dividend data, so many filers simply verify and submit. Payment, refunds, and the popular installment options are all handled in the same filing. Late filing draws surcharges, and non-filers who owe tax face additional penalties โ but if your employer withheld correctly and you are due a refund, filing is how you claim it.
Next steps
- Pin down your residency status for the current calendar year โ count your days before assuming which rules apply.
- Gather withholding statements from your employer (and any bank interest or dividend slips) ahead of May.
- Compare standard vs itemized deductions โ renters and the self-employed often do better itemizing.
- Check next year's announced figures each December, when the Ministry of Finance publishes the following year's exemptions, deductions, and brackets.
- Non-residents: confirm with your employer which withholding rate (6% or 18%) is being applied to your salary.