Vietnam reformed its PIT structure in 2026 (Law 109/2025/QH15, effective January 1, 2026), simplifying from 7 brackets to 5 brackets (5%β35%). The 15% and 25% bands were eliminated and all thresholds were raised. The top rate of 35% now kicks in at VND 1,200 million/year (~$45,800 USD) β up from VND 960 million under the old law. The personal deduction also increased from VND 11M to VND 15.5M/month (VND 186M/year, per Resolution 110/2025/UBTVQH15), meaning a single person with no dependents pays no PIT until monthly income exceeds VND 15.5 million (~$592/month). Dependent deduction: VND 6.2M/month per registered dependent (up from VND 4.4M). Social insurance adds 10.5%: 8% BHXH pension, 1.5% BHYT health, 1% BHTN unemployment β with BHXH and BHYT capped at 20 times the base salary (VND 46.8M/month until June 2026, VND 50.6M/month from July 2026 after the base salary rose to VND 2.53M, about VND 584M/year; the July figure is from secondary reports) and BHTN capped at 20 times the regional minimum wage (VND 106.2M/month in Region I). Foreign contractors can choose 5% withholding on gross revenue or register for regular progressive taxation. Vietnam has no capital gains tax on stocks (only 0.1% transaction tax on sale value). The 183-day rule determines tax residency. Non-residents pay a flat 20% on Vietnam-sourced employment income. Filing deadline: March 31 (last day of Q1 following the tax year).
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Vietnam's income tax uses 5 progressive PIT brackets 5β35% (reformed Jan 2026, Law 109/2025/QH15). Personal deduction VND 15.5M/month. Social insurance 10.5% employee (BHXH and BHYT capped at about VND 584M/year of wages). Use the calculator to estimate your take-home pay after income tax:
| Income | Rate |
|---|---|
| VND 0 β 120,000,000/year (β0 β $4,600/year, 0 β 10M/month) | 5% |
| VND 120,000,001 β 360,000,000/year (β$4,600 β $13,700, 10 β 30M/month) | 10% |
| VND 360,000,001 β 720,000,000/year (β$13,700 β $27,500, 30 β 60M/month) | 20% |
| VND 720,000,001 β 1,200,000,000/year (β$27,500 β $45,800, 60 β 100M/month) | 30% |
| Above VND 1,200,000,000/year (above β$45,800, 100M+/month) | 35% |
| Social Insurance (BHXH) β employee | 8% (wage base capped at 20x base salary, about VND 584M/year in 2026) |
| Health Insurance (BHYT) β employee | 1.5% (same cap as BHXH) |
| Unemployment Insurance (BHTN) β employee | 1% (capped at 20x the regional minimum wage, VND 106.2M/month in Region I) |
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