Taiwan has raised its income tax brackets, exemptions and main deductions for 2026 income, reported in the return filed in May 2027. The 5% bracket now covers the first NT$610,000 of net taxable income, the personal exemption is NT$101,000 and the salary deduction is NT$227,000. A new law also gives each dependent minor child an exemption of NT$151,500.
The main points for 2026 income:
- Adjusted for inflation: consumer prices have risen 4.13% since the last adjustment, past the 3% trigger, so the exemption, standard deduction, salary and disability deductions, brackets and the tax-free amounts for retirement income all rose.
- New by law: a higher exemption for dependent minor children, and full deduction of Labor Insurance and National Pension Insurance premiums for those who itemize.
- Unchanged: the deductions for savings and investment, college tuition, pre-school children, long-term care and rent, and the NT$7.5 million deduction under the income basic tax (alternative minimum tax, AMT).
- Not yet announced: the 2026 basic living expense amount (NT$213,000 per person for 2025).
Tax brackets for 2026 income
Tax rates apply to net taxable income: total income less exemptions, the standard or itemized deduction, special deductions and any basic living expense adjustment.
Tax = net taxable income × rate − progressive difference
| Net taxable income, 2026 (NT$) | Rate | Progressive difference (NT$) | 2025 bracket (progressive difference) |
|---|---|---|---|
| 0 to 610,000 | 5% | 0 | 0 to 590,000 (0) |
| 610,001 to 1,380,000 | 12% | 42,700 | 590,001 to 1,330,000 (41,300) |
| 1,380,001 to 2,770,000 | 20% | 153,100 | 1,330,001 to 2,660,000 (147,700) |
| 2,770,001 to 5,190,000 | 30% | 430,100 | 2,660,001 to 4,980,000 (413,700) |
| 5,190,001 and above | 40% | 949,100 | 4,980,001 and above (911,700) |
The rates are marginal. On net taxable income of NT$650,000, only the NT$40,000 above NT$610,000 is taxed at 12%: 650,000 × 12% − 42,700 = NT$35,300, the same as 610,000 × 5% + 40,000 × 12%.
Exemptions and deductions for 2026 income
| Item | 2026 income (NT$) | 2025 income (NT$) |
|---|---|---|
| Personal exemption, per person | 101,000 | 97,000 |
| Exemption for the taxpayer, spouse or a dependent parent or grandparent aged 70 or above | 151,500 | 145,500 |
| Exemption for a dependent minor child | 151,500 | 97,000 |
| Standard deduction, single | 136,000 | 131,000 |
| Standard deduction, married | 272,000 | 262,000 |
| Salary deduction, per person with salary | Up to 227,000 | Up to 218,000 |
| Disability deduction, per person | 227,000 | 218,000 |
| Savings and investment deduction, per household | Up to 270,000 | Up to 270,000 |
| College tuition deduction, per child | Up to 25,000 | Up to 25,000 |
| Pre-school child deduction, children aged 6 or under | 150,000 for the first child; 225,000 for each additional child | Same |
| Long-term care deduction, per person | 180,000 | 180,000 |
| Rent deduction, per household | Up to 180,000 | Up to 180,000 |
| Basic living expense amount, per person | Not yet announced | 213,000 |
A few details that change the result:
- The salary deduction cannot exceed the salary earned by that person.
- The 70-plus exemption is limited to the taxpayer, the spouse and dependent parents or grandparents. Other dependents aged 70 or above get the normal NT$101,000.
- Child amounts stack. For a child aged 6 or under, the minor child exemption and the pre-school deduction together come to NT$301,500 for the first child and NT$376,500 for each additional child. Under the Civil Code, a person becomes an adult at 18.
What the 2026 amendment added
The Income Tax Act was amended in September 2026 with effect from 2026 income:
- Dependent minor children: the exemption rises by 50%, from NT$101,000 to NT$151,500 per child.
- Social insurance premiums: Labor Insurance, Farmers’ Health Insurance, National Pension Insurance and military, civil servant and teacher insurance premiums are now fully deductible, like National Health Insurance premiums. This only matters if you itemize.
Rent and long-term care: not for higher earners
Both deductions are lost if any of these apply:
- the tax rate after these deductions is 20% or more (including a spouse’s salary taxed separately at 20% or more);
- dividends are taxed separately at the flat 28% rate;
- basic income for the income basic tax exceeds NT$7.5 million.
The rent deduction also requires a home rented in Taiwan for your own residence, with no one in the household owning a home in Taiwan, less any government rent subsidy. The pre-school child deduction has no income test.
Basic living expenses
If the basic living expense amount multiplied by the number of people in the return exceeds the household’s exemptions, standard or itemized deduction and special deductions (not counting the salary deduction), the difference is also deducted. The Ministry of Finance (MOF) had not announced the 2026 amount as of 10 November 2026.
Income basic tax
For 2026 income the deduction stays at NT$7.5 million per household and the rate at 20%:
Basic tax = (basic income − NT$7,500,000) × 20%
Basic income is net taxable income plus items such as overseas income (counted in full once it reaches NT$1 million a year for the household), gains on unlisted shares, and dividends taxed separately at 28%. You pay the difference only if it exceeds your regular income tax.
Filing period and 2027 figures
Residents file the return for 2026 income between 1 and 31 May 2027. The figures for 2027 income had not been announced as of 10 November 2026; follow the MOF announcement.
Foreign nationals
- Residents (183 days or more in Taiwan in the calendar year) use the same brackets, exemptions and deductions as Taiwanese taxpayers and file in May of the following year.
- Non-residents (fewer than 183 days) get no exemptions or deductions. Taiwan salary is withheld at 18%, or 6% if the monthly salary is no more than 1.5 times the minimum wage: NT$44,250 in 2026 and NT$46,350 for salary paid from 1 January 2027.
- Leaving during the year: a resident who leaves Taiwan and will not return that year files before departure, with the exemptions and standard deduction pro-rated by days in Taiwan.
Worked example
Hypothetical figures: a single resident earning NT$50,000 a month for 12 months, no other income, the standard deduction and no voluntary pension contribution.
The exemption plus the standard deduction is NT$237,000, so there is no basic living expense adjustment as long as the 2026 amount is NT$237,000 or less.
FAQ
How much can a single resident earn in 2026 without paying income tax?
With salary income only and the standard deduction, up to NT$464,000 for the year (101,000 + 136,000 + 227,000). A single person renting a home who can claim the full NT$180,000 rent deduction pays no tax up to NT$644,000.
Do foreign residents get the same exemptions and deductions as Taiwanese taxpayers?
Yes, if they are in Taiwan for 183 days or more in the year, including the NT$151,500 exemption for dependent minor children. Non-residents get none.
Is the income basic tax threshold still NT$7.5 million?
Yes. The MOF did not change it for 2026 income because prices had not risen enough to trigger an adjustment.
This article is general information based on Taiwan law as of November 2026, not advice on any specific case. Examples are hypothetical.