Taiwan applies a progressive individual income tax system with 5 brackets ranging from 5% to 40%. Tax residents (183 days or more per year) are taxed at progressive rates on Taiwan-source income; foreign-source income is generally outside the regular tax but counts toward the Basic Income Tax (an alternative minimum tax) once it exceeds NT$1 million. Short-stay non-residents are taxed at a flat 18% on Taiwan-source salary. Taiwan offers generous deductions: a personal exemption of NT$101,000, standard deduction of NT$136,000 (single) or NT$272,000 (married filing jointly), and a salary special deduction of NT$227,000—totalling NT$464,000 for a single employed resident (AY 2026). The tax year follows the calendar year with annual returns filed May 1 to May 31 (extended to the next working day if May 31 falls on a weekend).
Note: These are marginal rates — you only pay the higher rate on income within each bracket.
Source: Ministry of Finance eTax Portal
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Taiwan has 5 progressive tax brackets for residents (AY 2026): 5% on net taxable income up to NT$610,000, 12% on NT$610,001–1,380,000, 20% on NT$1,380,001–2,770,000, 30% on NT$2,770,001–5,190,000, and 40% on income over NT$5,190,000. These apply after deductions: single employed residents typically subtract NT$464,000 (personal exemption NT$101,000 + standard deduction NT$136,000 + salary deduction NT$227,000).
Foreigners staying in Taiwan 90 days or fewer pay 18% withholding tax on Taiwan-source salary from Taiwan employers (salary from foreign employers is generally exempt). Those staying 91-182 days pay a flat 18% on Taiwan-source salary income. Residents (183 days or more) use the progressive rates on Taiwan-source income and can claim deductions; their foreign-source income is generally outside the regular tax but counts toward the Basic Income Tax (an alternative minimum tax) when it exceeds NT$1 million, and the Basic Income Tax only bites once total basic income passes the NT$7.5 million exemption.
For AY 2026, a single employed resident can claim: personal exemption NT$101,000 (increased from NT$97,000), standard deduction NT$136,000 (increased from NT$131,000), and salary special deduction NT$227,000 (increased from NT$218,000)—totalling NT$464,000. Married couples filing jointly get a NT$272,000 standard deduction instead. Alternatively, itemize deductions for donations, insurance premiums (up to NT$24,000 per person, with National Health Insurance premiums not capped) and medical expenses. Rent paid on a home you live in (if you own no home in Taiwan) is a separate special deduction of up to NT$180,000 per household.
Taiwan's annual income tax filing period is May 1 to May 31 for the previous calendar year; when May 31 falls on a weekend the deadline moves to the next working day (it was June 1 in 2026 for the 2025 returns). Returns can be filed online through the Ministry of Finance e-filing system or at tax offices. There is no general extension of the deadline.
Taiwan has relatively low taxes compared to Western countries. After the NT$464,000 deduction package for single employees (AY 2026), the 5% rate covers the first NT$610,000 of taxable income. Taiwan has no separate capital gains tax, an estate tax exemption of NT$13.33 million per decedent, and a 5% value-added (business) tax. For a single resident employee, income tax plus employee labour, employment and NHI premiums comes to about 4.8% of salary at NT$300,000 (income tax NT$0, premiums NT$14,352), about 5.4% at NT$800,000 (income tax NT$16,800, premiums NT$26,172) and about 10.0% at NT$2,000,000 (income tax NT$154,100, premiums NT$45,228). Income tax alone is 0%, about 2.1% and about 7.7% of salary at those levels.
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Last Updated: October 2026