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Vietnam Tax Guide Hub 2026: Income Tax, Rates & Calculator

KEY INSIGHT
Vietnam 2026 PIT reform (Law 109/2025/QH15): 7 brackets reduced to <strong>5 brackets (5%–35%)</strong>. Personal deduction raised to VND 15.5M/month (VND 186M/year). Top 35% rate now starts at VND 1,200M/year (~$45,800 USD), up from VND 960M. Social insurance: 8% BHXH + 1.5% BHYT + 1% BHTN = <strong>10.5%</strong>, capped at VND 561.6M/year. A VND 600M earner (~$22,900): taxable = 414M, income tax ~VND 60M (10.0%) + social VND 56.7M (9.45%) = 19.4% effective. Foreign contractors: 5% flat on gross revenue. No CGT on stocks (0.1% transaction tax). Non-residents: flat 20%.
At a glance

Key Facts

Income Tax Range
5–35% (5 progressive PIT brackets, reformed Jan 2026)
Personal Deduction
VND 15.5M/month (VND 186M/year) — effective Jan 2026
Dependent Deduction
VND 6.2M/month per registered dependent
Introduction

Vietnam reformed its PIT structure in 2026 (Law 109/2025/QH15, effective January 1, 2026), simplifying from 7 brackets to 5 brackets (5%–35%). 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) — 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 — all capped at VND 561.6M/year (20 × VND 2,340,000 base salary × 12). 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).

This hub links to every Vietnam tax guide and calculator on CountryTaxCalc — covering income tax rates, expat obligations, and tools to calculate your take-home pay.

Section 01

Vietnam Tax Guides

Detailed Vietnam tax guides on CountryTaxCalc:

Section 02

Vietnam Income Tax Calculator

Vietnam's income tax uses 5 progressive PIT brackets 5–35% (reformed Jan 2026, Law 109/2025/QH15). Personal deduction VND 15.5M/month. Social insurance 10.5% employee (capped at VND 561.6M/year).. Use the calculator to estimate your take-home pay after income tax:

IncomeRate
VND 0 – 120,000,000/year (≈0 – $4,600/year, 0 – 10M/month)5%
VND 120,000,001 – 360,000,000/year (≈$4,600 – $13,700, 10 – 30M/month)10%
VND 360,000,001 – 720,000,000/year (≈$13,700 – $27,500, 30 – 60M/month)20%
VND 720,000,001 – 1,200,000,000/year (≈$27,500 – $45,800, 60 – 100M/month)30%
Above VND 1,200,000,000/year (above ≈$45,800, 100M+/month)35%
Social Insurance (BHXH) — employee8% (capped at VND 561.6M/year)
Health Insurance (BHYT) — employee1.5% (same cap)
Unemployment Insurance (BHTN) — employee1% (same cap)
Section 03

Related Hubs

Vietnam tax connects with these hubs on CountryTaxCalc:

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FAQ

Frequently Asked Questions

What are Vietnam's income tax brackets for 2026?

Vietnam reformed its PIT from 7 to 5 brackets effective January 1, 2026 (Law 109/2025/QH15). The 2026 structure on annual taxable income: 5% on VND 0–120 million (0–10M/month), 10% on VND 120–360 million (10–30M/month), 20% on VND 360–720 million (30–60M/month), 30% on VND 720–1,200 million (60–100M/month), and 35% above VND 1,200 million (above 100M/month). The old 15% and 25% bands were eliminated and all thresholds were raised. The top 35% rate now starts at ~$45,800 USD, up from the old ~$38,000 under the 7-bracket structure. Taxable income is gross income minus the personal deduction (VND 15.5M/month) and any registered dependent deductions.

What deductions reduce Vietnamese income tax?

The main deduction is the personal family circumstance deduction, updated for 2026 (Resolution 110/2025/UBTVQH15): VND 15.5 million/month (VND 186 million/year) for the taxpayer themselves, up from VND 11M/month. Dependants: VND 6.2 million/month per registered dependent (up from VND 4.4M), requiring registration with tax authorities and supporting documents. A single person with no dependents pays no PIT on income up to VND 15.5M/month (~$592/month). Additional deductions: mandatory insurance contributions (BHXH, BHYT, BHTN — paid pre-tax), charitable donations to approved organisations, and voluntary pension fund contributions. No broad itemised deductions like Western systems.

How much social insurance do Vietnamese employees pay?

Vietnamese employees pay 10.5% total social contributions: 8% BHXH social insurance (bảo hiểm xã hội, pension/sickness), 1.5% BHYT health insurance (bảo hiểm y tế), and 1% BHTN unemployment insurance (bảo hiểm thất nghiệp). All three are capped at 20× the reference base salary: VND 2,340,000/month × 20 = VND 46,800,000/month ceiling = VND 561,600,000/year (per Law on Social Insurance 41/2024/QH15, effective July 2025). Maximum annual employee social contribution: ~VND 58,968,000 (10.5% × 561.6M). Employers pay 21.5% (17.5% SI + 3% HI + 1% UI). Foreign employees in Vietnam also contribute to all three schemes but can claim a lump-sum SI refund upon departure.

How are foreign contractors taxed in Vietnam?

Foreign contractors (companies or individuals) providing services in Vietnam can choose: (1) Flat 5% withholding on gross revenue (simple, common for short-term work), or (2) Register with tax authorities and pay regular progressive rates on net profit. Most foreign freelancers use the 5% deemed method. Vietnamese clients must withhold and remit.
Disclaimer:This hub provides general information about Vietnam taxation for educational purposes only. Tax rules change frequently and individual circumstances vary. Always verify current rates and rules with the official Vietnam tax authority or a qualified local tax adviser. This is not tax or legal advice.
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