How is income tax calculated in Laos?

Laos applies a progressive personal income tax on annual employment income: the first LAK 15,600,000 is tax-free, then 5% up to LAK 60,000,000, 10% to LAK 180,000,000, 15% to LAK 300,000,000, 20% to LAK 780,000,000 and 25% above that. The tax is withheld monthly by your employer.

Is there a tax-free amount in Laos?

Yes. The first LAK 15,600,000 of annual income (about LAK 1,300,000 a month) is taxed at 0%, built into the scale. A single employee with no dependants pays the scale on the rest of their salary.

Can I compare different tax years?

Yes. Use the year selector to switch between 2023, 2024, 2025 and 2026, or turn on the year-comparison view to see two years side by side. Laos’s 0/5/10/15/20/25 scale has been stable, so results are consistent across these years.

Does this include social security?

No. Employees also pay about 5.5% to the social-security fund, which is documented but not deducted here, so the calculator shows income tax on gross and take-home after income tax only.

What about dependant allowances?

Laos allows allowances for dependants (up to LAK 5,000,000 per dependant, maximum three). This calculator models a single filer with no dependants; reduce your taxable income manually if allowances apply to you.

Is this calculator accurate for my situation?

It gives a reliable estimate for a standard resident employee on the progressive scale. It does not model dependant allowances, profit tax for sole traders or special regimes. Check with the Lao Tax Department or a tax adviser for your exact figures.

Laos Income Tax Calculator 2023-2026

How to use Laos Income Tax Calculator

This Laos income tax calculator works out the personal income tax that applies to employment income in Lao PDR for 2023, 2024, 2025 and 2026. Laos uses a progressive scale: the first LAK 15,600,000 a year is tax-free, then 5%, 10%, 15%, 20% and 25% bands apply as income rises. The calculator shows your income tax, your effective rate and your take-home pay in Lao kip, and lets you compare any two tax years side by side. It models a single employee with no dependants; a 5.5% social-security contribution is documented but not deducted.

Select your tax year (2023, 2024, 2025, or 2026) — the Lao scale is identical in every year.
Enter your annual gross salary in Lao kip (LAK).
Keep the filing status as Individual.
Click Calculate to see your income tax, effective rate and take-home pay.
Turn on the year-comparison view to see two tax years side by side.

Your data never leaves your device — 100% private processing.

How Laos income tax works

Laos taxes employment income on a six-band progressive scale. The first LAK 15,600,000 a year (about LAK 1,300,000 a month) is taxed at 0%. Income above that is taxed at 5% up to LAK 60,000,000, 10% up to LAK 180,000,000, 15% up to LAK 300,000,000, 20% up to LAK 780,000,000 and 25% above that. Only the part of your salary inside each band is taxed at that band’s rate, so your effective rate is always lower than your top rate. The scale has been unchanged across 2023–2026, so the calculator returns consistent results for each of those years.

Social security and dependant allowances

On top of income tax, employees contribute about 5.5% of salary to the social-security fund; this is documented but not deducted here, so take-home is shown after income tax only. Laos also allows allowances for dependants (up to LAK 5,000,000 per dependant, maximum three), which reduce taxable income. This calculator models a single filer with no dependants, so if allowances apply to you, reduce your taxable income accordingly before entering it.

Worked examples

Salary LAK 30,000,000, 2026

Inputs: LAK 30,000,000 salary

Result: LAK 720,000 income tax · take-home LAK 29,280,000

Salary LAK 100,000,000, 2026

Inputs: LAK 100,000,000 salary

Result: LAK 6,220,000 income tax · take-home LAK 93,780,000

Salary LAK 250,000,000, 2026

Inputs: LAK 250,000,000 salary

Result: LAK 24,720,000 income tax · take-home LAK 225,280,000

Glossary

Progressive tax: A system where higher slices of income are taxed at higher rates. Laos uses six bands from 0% to 25%.
Tax-free threshold: The amount of income taxed at 0%. In Laos it is the first LAK 15,600,000 a year.
Marginal rate: The rate charged on your next kip of income — the top band your salary reaches.
Effective tax rate: Total tax divided by gross income; always lower than the marginal rate under a progressive scale.
Social security: A mandatory contribution (about 5.5% for employees) funding pensions and health, separate from income tax.
Take-home pay: Pay after income tax is deducted from gross salary.

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Laos Income Tax Calculator

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