How much income tax do you pay in Vietnam as a tax resident?

Vietnam rewrote its personal income tax law in December 2025 (Law No. 109/2025/QH15) and the new rates apply from 1 July 2026. The old seven bracket table became five, and the deductions rose. Here is what a resident actually pays.

The five brackets on monthly taxable income

"Taxable income" is what remains after deductions. The personal deduction is VND 15.5 million per month (it was 11 million), and each registered dependent adds VND 6.2 million (it was 4.4 million). Compulsory insurance contributions, if you have a Vietnamese employer, come off as well.

A worked example

Take a resident earning the equivalent of VND 60 million per month with no dependents, about USD 2,300 at the rates of September 2026:

1. Taxable income: 60 million minus 15.5 million = 44.5 million
2. First 10 million at 5 percent: 500,000
3. Next 20 million at 10 percent: 2,000,000
4. Remaining 14.5 million at 20 percent: 2,900,000
5. Total: VND 5.4 million per month, about USD 208, an effective rate of 9 percent

Below about VND 17 million per month with no dependents (24 million with one, 31 million with two) the deductions wipe out the bill entirely.

Non-residents are different

If you are not a resident, none of the above applies. Non-residents pay a flat 20 percent on pay for work done in Vietnam, whoever pays it (Article 21 of Law 109/2025/QH15), unless a tax treaty exempts a short stay. Residency is decided by the 183 day rule, a residence card or a lease of 183 days or more.

Filing

The tax year is the calendar year. Employers finalize on behalf of staff by 31 March; individuals filing for themselves have until 30 April. Foreigners who were resident and leave for good must finalize within 45 days of departure. Tax paid abroad may be credited under a double tax agreement if the claim is lodged 15 days before the payment deadline.

The Vietnam tax guide has more examples and explains what to do about income from foreign clients.