How is Taiwan income tax calculated?

Taiwan uses a five-band progressive consolidated income tax: 5%, 12%, 20%, 30% and 40%. Each band applies only to the taxable income within its range. Taxable income is your gross income minus exemptions and deductions, which this calculator combines into one simplified standard deduction.

What are the Taiwan tax brackets for 2024 and 2025?

For the 2024 and 2025 income years the taxable-income bands are 5% up to NT$590,000, 12% to NT$1,330,000, 20% to NT$2,660,000, 30% to NT$4,980,000 and 40% above that. The 2023 year used lower thresholds (NT$560,000 / NT$1,260,000 / NT$2,520,000 / NT$4,720,000).

What deductions does this calculator apply?

It applies a simplified combined standard deduction — the personal exemption (NT$97,000 in 2024-25), the standard deduction (NT$131,000 single) and the salary special deduction (NT$218,000). It does not model itemised deductions, extra dependants, or the basic-living-expense difference, so your real tax may be lower.

Does this include Labor Insurance and National Health Insurance?

Yes. The calculator estimates the employee Labor Insurance premium (about 2.4% capped at the NT$45,800/month ceiling) and National Health Insurance (about 1.55%, the 5.17% premium times the 30% employee share) and subtracts both in your take-home figure.

What is the difference between effective and marginal tax rate?

Your effective rate is total income tax divided by income (your average). Your marginal rate is the rate on your next NT$. On NT$2,000,000 in 2025 your marginal rate is 20% but your effective rate is about 8.2% because of the large combined deduction and the low first band.

Does Taiwan have provincial or municipal income tax?

No. Personal income tax in Taiwan is national only, administered by the Ministry of Finance and the National Taxation Bureau. There is no provincial or municipal income tax, so your national income tax plus Labor Insurance and NHI is the full picture for a salaried worker.

Can I use this for previous income years?

Yes. Use the year selector to view the 2023, 2024, 2025 or 2026 income year rules — 2026 is the latest. The 2023 year uses the lower brackets and smaller deductions, while 2024 onward share the higher CPI-adjusted brackets and deduction amounts (2026 carries them forward pending any new adjustment).

Taiwan Income Tax Calculator

Enter your annual income to estimate your Taiwan income tax, Labor Insurance, National Health Insurance and take-home pay. Uses the progressive bands for multiple income years.

Updated June 2026

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Tax Calculator

Taiwan — 2026 Tax Year

2026 Tax Year

Tax Year

Select the tax year to view applicable rules and rates

This is an estimate. Consult a tax professional for accurate calculations.

Annual Gross Income (NT$ TWD)

Filing Status

Enter your income to calculate

Fill in your gross income and filing status, then calculate to see your tax breakdown.

How to use Taiwan Income Tax Calculator

This Taiwan income tax calculator estimates your individual consolidated income tax plus Labor Insurance and National Health Insurance based on your annual income and the income year you select. Choose between the 2023, 2024, 2025 and 2026 income years — the 2024 year onward uses the higher CPI-adjusted brackets (NT$590,000 / NT$1,330,000 / NT$2,660,000 / NT$4,980,000), while 2023 uses the lower thresholds and 2026 carries forward the latest amounts. A simplified combined standard deduction (personal exemption + standard deduction + salary special deduction) is applied before the five progressive bands, and the calculator shows your effective rate, marginal rate, a full bracket breakdown and your estimated take-home pay.

Select your income year (2023, 2024, 2025, or 2026) from the dropdown.
Enter your annual gross income (salary and wages before tax).
Keep the filing status as Individual — Taiwan assesses the consolidated income of the household.
Click Calculate to see your income tax, Labor Insurance, NHI, effective rate and marginal rate.
Review the band-by-band breakdown and your estimated take-home pay.

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

How Taiwan’s tax brackets work

Taiwan uses a five-band progressive consolidated income tax. Each band applies only to the taxable income within its range — not your whole income. Taxable income is your gross income minus deductions; this tool applies a simplified combined standard deduction of NT$446,000 for 2024-25 (personal exemption NT$97,000 + standard deduction NT$131,000 + salary special deduction NT$218,000). For example, on NT$2,000,000 income in 2025 your taxable income is NT$1,554,000: 5% on the first NT$590,000 (NT$29,500), 12% on the next NT$740,000 (NT$88,800) and 20% on the remaining NT$224,000 (NT$44,800), totalling about NT$163,100 — an effective rate near 8.2%, well below the 20% marginal rate.

2024-25 income-year tax brackets (taxable income)
Taxable Income (NT$)	Tax Rate	Progressive difference
0 – 590,000	5%	0
590,001 – 1,330,000	12%	41,300
1,330,001 – 2,660,000	20%	147,700
2,660,001 – 4,980,000	30%	413,700
Over 4,980,000	40%	911,700

Deductions, exemptions and the salary special deduction

Before the brackets apply, Taiwan lets you subtract a personal exemption (NT$97,000 in 2024-25, NT$92,000 in 2023), a standard deduction (NT$131,000 single in 2024-25, NT$124,000 in 2023) and a salary/wage special deduction (NT$218,000 in 2024-25, NT$207,000 in 2023). This calculator combines them into one simplified standard deduction so you can enter gross salary directly. It does not model itemised deductions, extra dependant exemptions, the pre-school-child or long-term-care special deductions, or the basic-living-expense difference — so your real taxable income, and tax, may be lower.

Labor Insurance and National Health Insurance

On top of income tax, salaried workers in Taiwan pay Labor Insurance and National Health Insurance (NHI) premiums withheld from pay. This tool applies a simplified employee Labor Insurance rate of about 2.4% capped at the NT$45,800/month insured-salary ceiling, and an NHI rate of about 1.55% (the 5.17% premium × the 30% employee share) capped at the NT$219,500/month ceiling. It excludes the employer share, the supplementary NHI premium on bonuses, and pension (labor pension) contributions, so treat the contribution figures as estimates.

Effective versus marginal tax rate

Your effective tax rate is your total income tax divided by total income — your true average. Your marginal rate is the rate on your next NT$, set by the highest band you reach. On NT$2,000,000 in 2025 your marginal rate is 20%, but because the first NT$590,000 of taxable income is taxed at only 5% and a large combined deduction applies first, your effective rate is around 8.2%. Understanding the gap helps with decisions about bonuses, overtime and deductions.

Worked examples

Individual, NT$1,000,000, 2025

Inputs: NT$1,000,000 income

Result: ~NT$27,700 income tax (taxable 554,000) · 2.8% effective · 5% marginal

Individual, NT$2,000,000, 2025

Inputs: NT$2,000,000 income

Result: ~NT$163,100 income tax (taxable 1,554,000) · 8.2% effective · 20% marginal

Individual, NT$5,000,000, 2025

Inputs: NT$5,000,000 income

Result: ~NT$952,500 income tax (taxable 4,554,000) · 19.1% effective · 30% marginal

Glossary

Consolidated income tax: Taiwan’s individual income tax assessed on the combined income of the taxpayer and household.
Personal exemption: A fixed amount (NT$97,000 in 2024-25) deductible per person before the tax brackets apply.
Standard deduction: A fixed deduction (NT$131,000 single in 2024-25) taken instead of itemising.
Salary special deduction: A wage/salary special deduction (NT$218,000 in 2024-25) that reduces taxable salary income.
Labor Insurance: A mandatory social-insurance premium withheld from wages, capped at the insured-salary ceiling.
National Health Insurance (NHI): Taiwan’s mandatory health insurance; the employee pays about 30% of the 5.17% premium.
Effective tax rate: Total income tax divided by total income — your true average tax rate.
Marginal tax rate: The tax rate applied to your next NT$ of taxable income, set by the highest band you reach.

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