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Personal Income Tax Calculator

How Personal Income Tax Is Calculated in Vietnam (2026)

One-line answer: For the 2026 tax year, Vietnam taxes a resident's monthly employment income on a five-step progressive scale from 5% to 35%, applied only after subtracting a 15,500,000 VND (15.5 million) personal deduction, 6,200,000 VND (6.2 million) per dependant, and compulsory social insurance of 10.5%.

Built by HAPRI, the Health and Agricultural Policy Research Institute, an independent public-policy research institute in Vietnam. Legal basis: Personal Income Tax Law 109/2025/QH15 (Article 9) and Resolution 110/2025/UBTVQH15. Published: 31 May 2026 · Last updated: 10 June 2026 · Law last verified: 10 June 2026 against the Ministry of Justice National Legal Portal (phapluat.gov.vn).

A Vietnamese tax resident pays personal income tax (PIT) on monthly taxable income, which is gross salary minus the 15,500,000 VND personal deduction, 6,200,000 VND for each dependant, and compulsory insurance (8% social + 1.5% health + 1% unemployment = 10.5%). The remainder is taxed on five progressive bands: 5% up to 10 million, 10% to 30 million, 20% to 60 million, 30% to 100 million, and 35% above 100 million. A resident earning 25 million a month with one dependant keeps about 22,341,250 VND, an effective tax rate of just 0.14%.

Checking whether the 11 million / 4.4 million deduction is still current? It is not. From the 2026 tax year the family-circumstance deduction (giảm trừ gia cảnh) is 15,500,000 VND (15.5 million) a month for the taxpayer and 6,200,000 VND (6.2 million) per dependant, set by Resolution 110/2025/UBTVQH15 (effective 1 January 2026). The previous 11,000,000 (11 million) and 4,400,000 (4.4 million) levels under Resolution 954/2020/UBTVQH14 apply only through the 2025 tax year, including 2025 finalisations filed during 2026. Law last verified 10 June 2026 against phapluat.gov.vn and the Government's policy portal.

Vietnam uses a progressive, slab-based monthly calculation for resident employment income. The calculator above runs exactly these five steps.

  1. Start from gross monthly salary (the contract figure, before any deductions).
  2. Subtract compulsory insurance. Employees contribute 8% to social insurance (BHXH), 1.5% to health insurance (BHYT), and 1% to unemployment insurance (BHTN), a total of 10.5%. Two separate caps apply to the contribution base (see Section 3).
  3. Subtract personal and family deductions. 15,500,000 VND for yourself, plus 6,200,000 VND for each registered dependant (Resolution 110/2025/UBTVQH15).
  4. The result is your taxable income (thu nhập tính thuế). If it is zero or negative, you owe no tax.
  5. Apply the five progressive bands to the taxable income and add the pieces together.

The formula:

taxable income = gross − insurance − 15,500,000 − (6,200,000 × dependants)
PIT            = progressive sum across the bands that the taxable income reaches
take-home pay  = gross − insurance − PIT

The quick-deduction shortcut. Because the bands are progressive, Vietnamese payroll practice uses an equivalent one-line formula, PIT = taxable income × band rate − a fixed deduction constant. It gives the identical result without summing each band:

  • Up to 10,000,000: 5% · 0
  • Over 10,000,000 to 30,000,000: 10% · 500,000
  • Over 30,000,000 to 60,000,000: 20% · 3,500,000
  • Over 60,000,000 to 100,000,000: 30% · 9,500,000
  • Over 100,000,000: 35% · 14,500,000

Both methods are shown side by side in the worked examples in Section 4 so you can verify the arithmetic either way.

All values below are for the 2026 tax year and link to the authentic government text in Section 8.

Progressive tax bands (monthly taxable income)

  • 1: 0 to 10,000,000 · 5% · Law 109/2025/QH15, Art. 9
  • 2: over 10,000,000 to 30,000,000 · 10% · Law 109/2025/QH15, Art. 9
  • 3: over 30,000,000 to 60,000,000 · 20% · Law 109/2025/QH15, Art. 9
  • 4: over 60,000,000 to 100,000,000 · 30% · Law 109/2025/QH15, Art. 9
  • 5: over 100,000,000 · 35% · Law 109/2025/QH15, Art. 9

The 2026 reform consolidated the previous seven bands into five. The old seven-band schedule (Law 04/2007/QH12 as amended) is still available in the calculator's "Compare to 2025 law" toggle for context.

Deductions

  • Personal deduction (giảm trừ bản thân): 15,500,000 VND (15.5 million) · Resolution 110/2025/UBTVQH15
  • Per-dependant deduction (giảm trừ người phụ thuộc): 6,200,000 VND (6.2 million) each · Resolution 110/2025/UBTVQH15
  • Compulsory insurance (employee share): 10.5% of contribution-base salary · Laws 41/2024/QH15, 74/2025/QH15, 25/2008/QH12

Insurance rates and contribution caps

  • Social insurance (BHXH): 8% · 20 × reference level = 46,800,000 VND (rises to 50,600,000 from 1 July 2026) · Law 41/2024/QH15, Art. 31, 33
  • Health insurance (BHYT): 1.5% · same 20 × reference-level cap · Law 25/2008/QH12 as amended by 51/2024/QH15
  • Unemployment insurance (BHTN): 1% · 20 × regional minimum wage (Zone I: 106,200,000 VND) · Law 74/2025/QH15, Art. 34.2

Why two caps matter: social and health insurance stop growing once salary passes 46,800,000 VND, but unemployment insurance keeps scaling on the full salary up to a much higher ceiling. For salaries up to 46.8 million the two caps coincide and insurance is simply 10.5% of salary; above that, the calculation splits (see Example B).

Reference values behind the caps

  • Reference level (mức tham chiếu): 2,340,000 VND, rising to 2,530,000 from 1 July 2026 · Decree 73/2024/NĐ-CP; Decree 161/2026/NĐ-CP
  • Zone I minimum wage: 5,310,000 VND · Decree 293/2025/NĐ-CP
  • Zone II / III / IV minimum wage: 4,730,000 / 4,140,000 / 3,700,000 VND · Decree 293/2025/NĐ-CP

Each example follows a real person through the full calculation. The figures are the exact output of the calculator above. We show both the band-by-band method and the quick-deduction shortcut so you can check the result either way.

One difference from many news articles: Vietnamese newspaper examples often start the deductions from gross salary and skip the 10.5% insurance step, which makes their taxable income (and tax) look higher. We subtract insurance first, exactly as the law requires, so our taxable income is lower. Where a press figure looks bigger than ours for the same salary, this is almost always why.

Example A: a young teacher in Ha Noi checks the tax on her new salary

Linh teaches at a high school in Ha Noi and has just been moved onto a higher pay grade. She now earns 25,000,000 VND (25 million) a month and supports one dependant, her mother. Working in Zone I, she wants to know what will actually land in her bank account.

Inputs: gross 25,000,000 VND/month · 1 dependant · Zone I · tax resident.

  1. Insurance (10.5%, below both caps): 8% (2,000,000) + 1.5% (375,000) + 1% (250,000) = 2,625,000 VND
  2. Total deductions: 15,500,000 (personal) + 6,200,000 (one dependant) + 2,625,000 (insurance) = 24,325,000 VND
  3. Taxable income: 25,000,000 − 24,325,000 = 675,000 VND (falls entirely in Band 1)
  4. PIT, band method: 675,000 × 5% = 33,750 VND PIT, quick-deduction method: 675,000 × 5% − 0 = 33,750 VND (same)

Result: Linh takes home 22,341,250 VND a month, an effective tax rate of 0.14%.

A common newspaper version of this case (25 million, one dependant) skips insurance and reports taxable income of 3,300,000 and tax of 165,000. Both are internally correct; ours is the complete calculation because it nets the 10.5% insurance the law allows as a deduction first.

Basis: Law 109/2025/QH15 Art. 9 (Band 1, 5%); Resolution 110/2025/UBTVQH15 (deductions).

Example B: a marketing manager in TP.HCM weighs a job offer

Quan has been offered a marketing manager role in Ho Chi Minh City paying 50,000,000 VND (50 million) a month. He has two dependants, his two young children, and the job is in Zone I. Because his salary sits above the insurance cap, he wants a realistic picture of his net pay before signing.

Inputs: gross 50,000,000 VND/month · 2 dependants · Zone I · tax resident.

  1. Insurance (the cap now bites): social and health insurance are charged on the capped base of 46,800,000, not the full salary, while unemployment insurance is charged on the full 50,000,000. So: 8% × 46,800,000 (3,744,000) + 1.5% × 46,800,000 (702,000) + 1% × 50,000,000 (500,000) = 4,946,000 VND. The cap saves him 304,000 a month versus a flat 10.5%.
  2. Total deductions: 15,500,000 + 12,400,000 (two dependants) + 4,946,000 = 32,846,000 VND
  3. Taxable income: 50,000,000 − 32,846,000 = 17,154,000 VND (reaches Band 2)
  4. PIT, band method: 10,000,000 × 5% (500,000) + 7,154,000 × 10% (715,400) = 1,215,400 VND PIT, quick-deduction method: 17,154,000 × 10% − 500,000 = 1,215,400 VND (same)

Result: Quan takes home 43,838,600 VND a month, an effective tax rate of 2.43%.

This is the case that exercises the insurance cap, something almost no newspaper example shows. The split treatment (social and health on the capped base, unemployment on full salary) is what makes the insurance figure 4,946,000 rather than a flat 5,250,000.

Basis: Law 109/2025/QH15 Art. 9 (Bands 1 and 2); Law 41/2024/QH15 Art. 31 (20 × reference-level cap).

Example C: a senior software engineer in Da Nang plans his finances

Tuan is a senior software engineer in Da Nang, earning 100,000,000 VND (100 million) a month with no dependants. Single and saving hard for an apartment, he wants a clear picture of his net pay and how much of his next raise the top bands would take.

Inputs: gross 100,000,000 VND/month · 0 dependants · Zone I · tax resident.

  1. Insurance: social and health on the capped 46,800,000 base, unemployment on the full salary: 3,744,000 + 702,000 + 1,000,000 = 5,446,000 VND
  2. Taxable income: 100,000,000 − 15,500,000 (personal) − 5,446,000 (insurance) = 79,054,000 VND (reaches Band 4)
  3. PIT, band method: 10,000,000 × 5% (500,000) + 20,000,000 × 10% (2,000,000) + 30,000,000 × 20% (6,000,000) + 19,054,000 × 30% (5,716,200) = 14,216,200 VND PIT, quick-deduction method: 79,054,000 × 30% − 9,500,000 = 14,216,200 VND (same)

Result: Tuan takes home 80,337,800 VND a month, an effective rate of 14.22%, with a marginal rate of 30%. Every extra dong he earns, until his taxable income reaches 100,000,000, is taxed at 30%, which tells him how much of a raise he would actually keep.

No mainstream newspaper works an example this large, but the result is corroborated exactly by the enacted quick-deduction formula for Band 4 (30% × taxable − 9,500,000).

Basis: Law 109/2025/QH15 Art. 9 (Bands 1 to 4); Law 41/2024/QH15 Art. 31 (cap).

How much salary is tax-free in Vietnam in 2026?

A resident with no dependants pays no PIT until gross salary passes roughly 17,300,000 VND a month, because the 15,500,000 personal deduction plus 10.5% insurance already cover income below that. Each dependant raises the tax-free threshold by 6,200,000.

What is the personal deduction for 2026?

15,500,000 VND a month (186,000,000 a year) for the taxpayer, plus 6,200,000 a month for each registered dependant, under Resolution 110/2025/UBTVQH15. These replaced the previous 11,000,000 and 4,400,000 amounts.

Is the family-circumstance deduction still 11 million / 4.4 million VND?

No. From the 2026 tax year the deduction is 15,500,000 VND (15.5 million) a month for the taxpayer and 6,200,000 VND (6.2 million) per dependant, under Resolution 110/2025/UBTVQH15, passed 17 October 2025 and effective from 1 January 2026. The previous 11,000,000 (11 million) and 4,400,000 (4.4 million) levels under Resolution 954/2020/UBTVQH14 applied through the 2025 tax year only; use them only when finalising 2025 income.

What are the 2026 tax bands?

Five progressive bands on monthly taxable income: 5% up to 10 million, 10% to 30 million, 20% to 60 million, 30% to 100 million, and 35% above 100 million (Law 109/2025/QH15, Article 9).

Is the tax rate applied to my whole salary?

No. Vietnam uses a progressive, slab system. Only the portion of taxable income that falls inside each band is taxed at that band's rate, so your average (effective) rate is always lower than your top (marginal) rate.

Are insurance contributions deducted before tax?

Yes. Compulsory social, health and unemployment insurance (10.5% of the contribution base) is subtracted before tax is calculated. This is the step most quick news examples leave out.

Are trade-union dues deductible from taxable income?

No. Trade-union dues (0.5% of the social-insurance base) are taken from your pay but are not on the list of PIT-deductible items, so they do not reduce your taxable income. This is confirmed by General Department of Taxation Official Letter 1756/TCT-TNCN (2017).

Is interest on savings deposits exempt from personal income tax?

Yes. Interest an individual earns on deposits at credit institutions, including bank savings accounts, is exempt from PIT, and the new Personal Income Tax Law 109/2025/QH15 keeps this exemption; a proposal to tax interest on large deposits was debated during drafting but not enacted. Interest on government bonds and payouts under life-insurance contracts are likewise exempt. (This page covers employment income only.)

How are non-residents taxed?

A non-resident (broadly, someone in Vietnam under 183 days in the tax year) is taxed at a flat 20% on Vietnam-source employment income, with no personal deductions and generally no compulsory insurance.

When do the 2026 rules take effect?

They apply for the 2026 tax year. The deduction increase took effect from the start of the 2026 tax period; Law 109/2025/QH15 commences on 1 July 2026 but its salary provisions apply across the whole 2026 tax year.

  • Salary above the insurance cap (over 46,800,000). Social and health insurance freeze at 8% and 1.5% of 46,800,000; only unemployment insurance keeps rising. From 1 July 2026 the cap rises to 50,600,000 as the reference level moves to 2,530,000.
  • Mid-2026 reference-level change. Because the reference level rises on 1 July 2026, a high earner's insurance (and therefore net pay) changes slightly in the second half of the year. The calculator uses the current 46,800,000 cap.
  • No dependants. Only the 15,500,000 personal deduction applies, so tax starts at a lower salary than for someone with dependants.
  • Multiple employers. The calculator assumes a single labour contract. With two employers, each withholds separately and you reconcile through an annual finalisation; the result can differ from a single-contract estimate.
  • A bonus or 13th-month salary. A lump-sum bonus is taxed in the month it is paid and can push that month into a higher band. Use the dedicated 13th-Month / Tet Bonus calculator for that case.
  • Income that is not salary. These figures cover employment income only. Business, capital-gains, securities, real-estate-transfer, royalty, inheritance and lottery income follow different rules and are out of scope.
  • Thu nhập tính thuế (taxable income): gross salary after insurance and all deductions; the figure the tax bands are applied to.
  • Giảm trừ gia cảnh (family-circumstance deduction): the personal (15,500,000) and per-dependant (6,200,000) deductions.
  • Biểu thuế lũy tiến từng phần (progressive slab schedule): the five-band table; each slab of income is taxed at its own rate.
  • Mức tham chiếu (reference level): the statutory base (2,340,000) used to set the social and health insurance contribution cap at 20 times its value.
  • Cá nhân cư trú / không cư trú (resident / non-resident): residents are taxed progressively with deductions; non-residents at a flat 20% with none.
  • Thuế suất hiệu dụng (effective rate): total tax divided by gross income, always lower than the marginal (top-band) rate.

Every figure on this page traces to the primary Vietnamese legal text. Links go primarily to the National Legal Portal (phapluat.gov.vn), the Ministry of Justice portal HAPRI uses as its source of record, with a full-text link to the Ministry of Justice National Legal Database (vbpl.vn) alongside for the complete machine-readable text.

This page and the calculator above model the 2026 tax year for the common employee case: a resident or foreign worker on a single labour contract, subject to compulsory insurance. They do not model business income, capital gains, securities or real-estate transfers, royalties, inheritance, gifts, or lottery winnings, and they assume one employer.

The calculator is an estimation aid, not professional tax advice. For a formal filing, consult a licensed Vietnamese tax practitioner or the General Department of Taxation (Tổng cục Thuế). HAPRI is an independent research institute and has no commercial interest in your result; the tool is free and the full methodology is published so you can audit every number.

HAPRI (the Health and Agricultural Policy Research Institute) builds free, openly-documented tools to make Vietnamese public policy legible to the people it affects. This calculator is part of a suite of seven covering personal income tax, take-home pay, pensions and social insurance. The math is version-controlled, tested against the primary law, and refreshed from a live constants database, so the figures here stay in step with the statute as it changes.

  • Gross-to-Net Salary calculator — turn a contract gross salary into the take-home pay you actually receive.
  • Net-to-Gross (gross-up) calculator — work backwards from a target take-home figure to the gross an employer must offer.
  • 13th-Month / Tet Bonus tax calculator — see how much of a year-end bonus you keep after the lump-month tax bite.
  • Pension calculator — estimate your monthly retirement pension under Social Insurance Law 41/2024/QH15.
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