Thailand taxes personal income on a progressive scale from 0% to 35%. But the number that matters for you is not your marginal rate it is your effective rate, which is almost always considerably lower. This guide walks through the brackets, shows worked examples, and covers every deduction you can use to reduce your bill.
How Thailand's Progressive Tax System Works
Thailand uses a progressive income tax system, which means different portions of your income are taxed at different rates. The common misconception is that if you fall into the 25% band, you pay 25% on all your income. You do not. You pay each band's rate only on the income within that band.
Before the bands are applied, allowable deductions and personal allowances are subtracted from your gross income. The result taxable income is what the brackets are applied to.
The 2026 Tax Brackets in Full
| Taxable Income (THB) | Rate | Tax on this band | Total tax to top of band |
|---|---|---|---|
| 0 – 150,000 | Exempt (0%) | 0 | 0 |
| 150,001 – 300,000 | 5% | 7,500 | 7,500 |
| 300,001 – 500,000 | 10% | 20,000 | 27,500 |
| 500,001 – 750,000 | 15% | 37,500 | 65,000 |
| 750,001 – 1,000,000 | 20% | 50,000 | 115,000 |
| 1,000,001 – 2,000,000 | 25% | 250,000 | 365,000 |
| 2,000,001 – 5,000,000 | 30% | 900,000 | 1,265,000 |
| 5,000,001+ | 35% | Marginal |
Effective vs Marginal Rate Worked Examples
Three examples at common expat income levels. All figures assume a single person with employment income only, claiming the standard employment deduction and personal allowance.
| Annual income (THB) | After deductions | Tax owed | Effective rate |
|---|---|---|---|
| 600,000 (~$17k USD) | 440,000 | 21,500 | 3.6% |
| 1,500,000 (~$42k USD) | 1,340,000 | 222,500 | 14.8% |
| 3,500,000 (~$99k USD) | 3,340,000 | 762,500 | 21.8% |
Calculations use 100,000 THB employment deduction (50% capped) + 60,000 THB personal allowance.
Deductions That Reduce Your Taxable Income
| Deduction | Amount | Notes |
|---|---|---|
| Employment income deduction | 50% of employment income, max 100,000 THB | Applied before allowances |
| Personal allowance | 60,000 THB | Available to all tax residents |
| Spouse allowance | 60,000 THB | Only if spouse has no assessable income |
| Child allowance | 30,000 THB per child (60,000 for post-2018 births) | Up to three qualifying children |
| Health insurance premiums | Actual amount, max 25,000 THB | Thai policies only |
| Life insurance premiums | Actual amount, max 100,000 THB | Policy must meet Revenue Dept criteria |
| RMF / SSF contributions | Subject to combined 30% income cap | Thai investment products |
| Charitable donations (approved) | Up to 10% of income after other deductions | Must be to approved Thai charities |
How to Estimate Your Bill
Formula: (Gross income) minus (Employment deduction) minus (Personal allowances) = Taxable income. Apply the bracket rates to the taxable income using the cumulative column above. Or use the free Thailand tax calculator which does this automatically and also shows the LTR 17% flat rate for comparison.
Non-Residents The Flat 15% Rule
Non-residents (fewer than 180 days in Thailand per year) are taxed on Thai-source income only, and typically at a flat 15% withholding rate rather than the progressive scale. This applies to employment income, service fees, interest, dividends, and rent from Thai sources. Withholding is usually applied at source by the Thai payer.