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).
1. Quick answer
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 0.135%.
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.
2. How PIT is calculated, step by step
Vietnam uses a progressive, slab-based monthly calculation for resident employment income. The calculator above runs exactly these five steps.
- Start from gross monthly salary (the contract figure, before any deductions).
- 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).
- Subtract personal and family deductions. 15,500,000 VND for yourself, plus 6,200,000 VND for each registered dependant (Resolution 110/2025/UBTVQH15).
- The result is your taxable income (thu nhập tính thuế). If it is zero or negative, you owe no tax.
- Apply the five progressive bands to the taxable income and add the pieces together.
The formula:
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.
3. Rates, deductions and thresholds (2026)
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 = 50,600,000 VND (from 1 Jul 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 50,600,000 VND, but unemployment insurance keeps scaling on the full salary up to a much higher ceiling. For salaries up to 50.6 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): 2,530,000 VND from 1 July 2026 (was 2,340,000) · 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
New from the 2026 tax period (Decree 253/2026/ND-CP): in-country medical expenses within the health-insurance service scope (up to 23,000,000 VND/year) and in-country education-training expenses (up to 24,000,000 VND/year) — combined up to 47,000,000 VND/year for the taxpayer and registered dependants — can be deducted at the year-end tax settlement (quyet toan) with valid invoices, per current guidance. Monthly withholding, and therefore this calculator, does not include them. With one dependant and the full 47 million documented, PIT effectively starts above about 28.6 million VND/month at settlement.
4. Worked examples
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.
Result: Linh takes home 22,341,250 VND a month, an effective tax rate of 0.135%.
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 60,000,000 VND (60 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 60,000,000 VND/month · 2 dependants · Zone I · tax resident.
Result: Quan takes home 52,423,700 VND a month, an effective tax rate of 3.62%.
This is the insurance cap in action, something almost no press example shows. The split treatment (social and health on the 50,600,000 capped base, unemployment on the full salary) is what makes the insurance figure 5,407,000 rather than a flat 6,300,000 (10.5% of 60 million). Until 30 June 2026 the cap was 46,800,000; Decree 161/2026/ND-CP lifted it on 1 July 2026.
Basis: Law 109/2025/QH15 Art. 9 (Bands 1 and 2); Law 41/2024/QH15 Art. 31 (20 × reference-level cap); Decree 161/2026/ND-CP (current 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.
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).
5. Frequently asked questions
6. Common scenarios and edge cases
- Salary above the insurance cap (over 50,600,000). Social and health insurance freeze at 8% and 1.5% of 50,600,000; only unemployment insurance keeps rising. On 1 July 2026 the cap rose to 50,600,000 as the reference level moved to 2,530,000 (Decree 161/2026/ND-CP).
- Mid-2026 reference-level change. Because the reference level rose on 1 July 2026 (Decree 161/2026/ND-CP), a high earner's insurance (and therefore net pay) is slightly lower from July onwards. The calculator uses the current 50,600,000 cap.
- Medical and education deductions (from 1 July 2026). Decree 253/2026/NĐ-CP adds deductions for in-country medical expenses (up to 23 million VND a year) and education and training expenses (up to 24 million VND a year), with a combined ceiling of 47 million a year, claimed at the year-end tax settlement. These can lift the income threshold at which you start owing tax; the calculator estimates monthly withholding, so it does not yet reflect this settlement-time deduction.
- 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.
7. Key terms
8. Legal basis and sources
Every figure on this page traces to the primary Vietnamese legal text. Links go 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 National Legal Database (vbpl.vn) alongside.
9. Methodology, scope and disclaimer
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.
10. About this calculator
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.
11. Related HAPRI calculators
- Gross-to-Net Salary calculator — turn a contract gross salary into the monthly take-home pay you actually receive.
- Net-to-Gross (gross-up) calculator — work back from a target take-home figure to the gross an employer must offer.
- 13th-Month / Tet Bonus tax calculator — the tax on a Tet bonus or 13th-month salary, comparing lump-sum vs spread payment.
- Pension calculator — your monthly retirement pension under Social Insurance Law 41/2024/QH15.
- Lump-Sum Social Insurance (BHXH) calculator — a one-time social-insurance (BHXH) withdrawal versus waiting for a monthly pension.
- Unemployment Insurance calculator — the monthly jobseeker benefit and how many months it lasts.