Vietnam's personal income tax on salaries changed a lot in 2026: fewer brackets, wider bands and much bigger family deductions. If you earn a salary in Vietnam — local or expat — here is how the tax is calculated each month, and why the yearly settlement often ends in a refund.
What changed in 2026
- Personal deduction: 15,500,000 ₫ a month (was 11,000,000 ₫).
- Dependant deduction: 6,200,000 ₫ a month per dependant (was 4,400,000 ₫).
- Brackets: 5 instead of 7, applied from the 2026 tax year.
The 2026 tax brackets (per month)
| Taxable income | Rate |
|---|---|
| Up to 10,000,000 ₫ | 5% |
| 10M – 30M ₫ | 10% |
| 30M – 60M ₫ | 20% |
| 60M – 100M ₫ | 30% |
| Above 100M ₫ | 35% |
For the yearly settlement every limit is multiplied by 12 — the first bracket covers up to 120M ₫ a year, and so on.
How monthly tax is calculated
Taxable income = taxable salary − compulsory insurance − family deductions
Then the brackets are applied one slice at a time. Only the part of your income inside each band is taxed at that band's rate.
Example: a taxable salary of 40,000,000 ₫, insurance of 4,200,000 ₫ (10.5%), no dependants.
- Taxable income: 40,000,000 − 4,200,000 − 15,500,000 = 20,300,000 ₫
- First 10,000,000 at 5% = 500,000 ₫
- Next 10,300,000 at 10% = 1,030,000 ₫
- Tax: 1,530,000 ₫ — an effective rate of 3.82% of the salary.
The yearly settlement (tax return)
Employers withhold tax month by month. At the end of the year the whole year is recalculated, and you either pay a balance or get a refund. A few rules work in your favour:
- The personal deduction counts for all 12 months, even if you only worked part of the year.
- Dependants count for the months they were registered.
- Contributions to approved voluntary pension or life insurance are deductible up to 12,000,000 ₫ a year, and donations through approved charities are deductible too.
Example: 30,000,000 ₫ a month all year, insurance 3,150,000 ₫ a month. Tax withheld with no dependants: 635,000 ₫ × 12 = 7,620,000 ₫. You register a child for the last 6 months.
- Family deductions: 12 × 15,500,000 + 6 × 6,200,000 = 223,200,000 ₫
- Taxable income: 360,000,000 − 37,800,000 − 223,200,000 = 99,000,000 ₫
- Tax for the year: 99,000,000 × 5% = 4,950,000 ₫
- Refund: 2,670,000 ₫
How to calculate your tax
- Open the Vietnam Income Tax Calculator.
- Choose Monthly tax on salary or Yearly settlement.
- Pick the rules period — 2026 (5 brackets) or 2025 (7 brackets) to compare.
- Enter your income, insurance and dependants (dependant-months for the yearly mode), plus donations, pension contributions and tax already withheld.
- Read the tax due, the bracket-by-bracket table and whether you owe or get money back.
FAQ
Are non-residents taxed the same way? No. Non-residents pay a flat 20% on Vietnam-sourced salary with no deductions. The calculator is for tax residents.
What income isn't taxed? Some allowances are exempt — for example lunch allowances within the limit and overtime premiums above normal pay. Leave them out of the taxable income you enter.
Who files the yearly return? Often the employer settles on your behalf if you worked for one company all year. If you changed jobs or have other income, you may need to file yourself — check with your employer or the tax office.
Try it now
Run your numbers in the free Vietnam Income Tax Calculator. For take-home pay from a gross offer, use the Vietnam Salary Calculator. Results are estimates; the tax office's figures prevail.