Taiwan applies a progressive individual income tax system with 5 brackets ranging from 5% to 40%. Tax residents (183+ days per year) are taxed on worldwide income using progressive rates. Non-residents are taxed at a flat 18% on Taiwan-sourced income only. 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 June 30.
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 less than 90 days pay 18% withholding tax on Taiwan-source salary from local employers only. Those staying 90-183 days pay 18% flat tax on all Taiwan-source income. Residents (183+ days) use the progressive rates on worldwide income and can claim deductions.
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 NT$272,000 standard deduction instead. Alternatively, itemize deductions for donations, insurance premiums (up to NT$24,000), medical expenses, and rental payments (up to NT$120,000).
Taiwan's annual income tax filing period is May 1 to June 30 for the previous calendar year. Returns can be filed online through the eTax Portal or at tax offices. Extensions are available for overseas residents or special circumstances.
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. There's no capital gains tax on securities, no inheritance tax below NT$13.33 million, and no VAT (just 5% business tax on most goods). Employee social contributions add ~2.85% (labor, employment, and NHI combined). Effective total rates: ~3% at NT$300,000 income, ~5% at NT$800,000, ~10% at NT$2,000,000.
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Last Updated: May 2026