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Income Tax in Thailand: Who Needs to Pay & How Much?

I have a few “working in Thailand” related posts on the blog, and I often get questions related to income tax.

Specifically: How much tax does a foreigner have to pay on his/her earnings, and do others such as digital nomads, who are not currently paying tax in their country of origin, have to pay tax in Thailand?

Tax law in Thailand is actually pretty complicated, so in this post I’ll just cover the need to know stuff.

I would also advise that if you aren’t on PAYE with a company and are required to do your own return that you get an accountant. Tax returns have to be reported in Thai, which presents a language barrier for most.

thailand income tax

Income Tax on Earnings

Income tax in Thailand is based on assessable income. The definition of “assessable” covers the following:

  1. Wages paid in Thailand or abroad
  2. Income earned by a person who resided in Thailand for a total of 180 days
  3. Housing and meal allowances or their value
  4. School fees for dependents paid for by employer
  5. Cost of home leave for taxpayer and dependents
  6. Capital gains arising from transfer of assets
  7. Pensions and retirement pay brought into Thailand
  8. Royalties

The Thai Tax Year

The Thai tax year runs from 1st January to 31 December. An income tax return needs to be made to the tax office by the 31st March, for the prior tax year.

Payments need to be made immediately because there are penalties for delayed processing and settlement.

For those earning income from property selling or engineering, architecture, accountancy, fine arts and the art of healing, the tax return must be filed on or before the 31st of September, with the tax due on or before the 30th of June of the following year.

Foreigners should note that when renewing a work permit, you will need to show a copy of your tax submission for the previous year.

Thai Income Tax Bands – 2025

Thailand taxes both residents and non-residents on income derived from employment or business carried out in Thailand, regardless of whether payment is remitted in or outside of Thailand.

Residents who receive income from abroad are taxable on that income if the income is brought into Thailand in the tax year in which it is received (see the section below of a definition on ‘resident'.

Income BandRate
0  – 150,000Exempt
150,000 – 300,0005%
300,000 – 500,00010%
500,000 – 750,00015%
750,000 – 1,000,00020%
1,000,000 – 2,000,00025%
2,000,000 – 5,000,00030%
5,000,001 +35%

* In addition to the 150,000 Baht tax exemption threshold, persons over the age of 65 receive an exemption on the first 190,000 of taxable income.

I know what you’re thinking: Thailand’s tax rates are pretty much the same as my home country!

One saving grace is that Thailand does not have a 45% tax rate like some countries, and the 30% tax rate has been expanded so that you can earn more at that rate before being put onto the 35% band.

All forms of earnings are generally taxable and fall under the personal income tax bracket. This ranges from a work salary to capital gains or dividends, lease transactions, or even selling clothes on the sidewalk, as long as the earnings are over 150k per year.

Resident Vs Non Resident

The law stipulates that anyone who resides in Thailand for longer than 180 days is considered a resident.

That’s right: not a resident as in a citizen, but citizen as in eligible to pay tax.

This means you’ll need to pay tax on your global income, which is money you earn in your home country and any other country. This includes your pension (see below).

If you are a foreigner and reside in Thailand for fewer than 180 days each calendar year, then you will only have to pay tax on the earnings that you earn inside Thailand.

Now, before you say, “But I haven’t got a work permit!” It doesn’t matter. Those who do not have a work permit are NOT exempt from paying tax.

Double Tax Treaties

Thailand has double tax treaties with nearly every country on the planet.

The purpose of a tax treaty is to prevent a company or individual from one country being taxed twice on income earned in another country.

Many people assume that despite being considered a resident in Thailand, they don't need to pay tax on their income because it is taxed in their home country. This isn't quite true.

Once you stay the 180 days, the law requires you to declare money brought into the country if it was earned within the current tax year.

The onus is on you to sort out your residence status in your home country and let them know that for the given tax year you are a Thai resident and required to pay tax there. Then, because of the double tax treaty, you won't be taxed in your home country. And if you've already paid tax, you can ask for a rebate.

In short: the double tax treaty prevents double taxation, but doesn't define residency. This is a separate issue.

If you meet the resident requirements then the double tax treaty is irrelevant; you have a tax liability here. That doesn't mean you'd pay twice, it just means you need to sort out your residence status using the double tax treaty rules to avoid double payment.

Is My Pension Taxable in Thailand?

Potentially, yes.

But I've never met anyone who has paid tax on, or has declared their pension as income, in Thailand.

This is because, if you are on a retirement visa extension, the rule is that you don't have to pay tax on your pension, regardless of whether you brought it into the country in the same year or not.

You may read conflicting opinions on this, and even some public officials may not be clear on this. However, the reality on the ground is that Thailand isn't about to go enforcing tax on pensions on retirees, because the hassle would cause a backlash and most certainly repel prospective retirees rather than encourage them.

No one wants the added hassle of retiring to the beach and having to deal with an accountant.

Working Online (Digital Nomads) & Paying Tax in Thailand

There’s a a myth among the “working online” community, which, by the way, avoids the work permit issue because the current law simply doesn’t legislate for it, that Thailand is a grey tax zone; meaning one can work inside Thailand and not pay tax in their home country, or Thailand for that matter.

This isn’t true. If you stay over 180 days in a given year, you automatically have a tax liability in Thailand.

Even if you're staying less that 180 days, you still have a tax liability and will need to pay tax somewhere.

So if you're a digital nomad in Thailand, working as a web developer, blogger, web cam stripper or whatever, you should be aware that if you aren’t paying tax, it may eventually catch up with you.

Thailand is not a tax haven. It never has been and isn't likely to ever be.

It is very likely that when Thailand finally does get around to addressing the digital nomad visa/work permit issue, that they’ll realize most of these people aren’t paying tax in their home countries and by law (residents) should be paying tax in Thailand.

Tax is always collected on retrospective earnings, and the penalty for failing to submit a tax return in Thailand is up to double the amount owed.

How to Get a Tax Number

To file a return you need a tax ID number from the tax office. To acquire one, you’ll need a passport or identity card, and need to demonstrate why you need a number.

Tax Deductions & Allowances

Like every other country, tax deductions and allowances are available in Thailand. These are intended to reduce the tax load and make it seem almost generous that the tax man isn’t taking the shirt entirely off your back.

Deductible Expenses

  1. Employment Income: 50% – not more than 100,000 THB
  2. Copyright Income: 40% – not more than 60,000 THB
  3. Rental Income from assets and properties:  10% – 30%
  4. Profession: a. Medical Profession: 60%. b. Liberal Profession: 30%
  5. Actual Expense or Contract Work: 70%
  6. Actual Expense or Business Activities: 65% – 85%

Tax Allowances

Aside from the scheduled tax allowance provided in the table below, there are limited allowances for the following:

  1. Home mortgage interest payments
  2. Purchases of retirement mutual fund and long term equity fund
  3. Contributions to charities
  4. Social Insurance contributions
  5. Life Insurance premiums
  6. Qualified provident fund payments

Personal Deductions:

  1. 60,000 Baht: Both for the taxpayer and the spouse (provided that the taxpayer's spouse does not file his/her own return)
  2. 30,000 Baht: For each child (additional THB 30,000 for the second child onwards born in or after 2018)
  3. 30,000 Baht: For the taxpayer and spouse’s parents, if the parents are over 60 years old and whose income for the tax year is below 30,000 Baht
  4. 60,000 Baht: For the care of disabled or incapacitated family members.

* A non-resident is allowed to claim deductions for a spouse, children, and parent, but only if they are resident in Thailand

Getting Professional Financial Advice

I am not a qualified accountant or an Independent Financial Advisor (IFA). I will do my best to answer your questions in the comments section below, but cross-boarder tax affairs can be a complicated matter.

If you are in doubt over the best arrangement for your tax affairs and investments, please speak to an expert. If you'd like to, you can speak with my IFA for advice. To do this, you can contact me by email (I'll give you his details), or by using this form

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  1. Bob says

    "Residents who receive income from abroad are taxable on that income if the income is brought into Thailand in the tax year in which it is received"

    so surely any digital nomad who stays 180+ days (which they could do on a 1 year 'O' visa or student visa) can bring in monies that they earned in the previous financial year tax free? And then back into grey area.... even if they brought in more recently earned monies, how on earth could Thai govt. possibly prove when the money was earned?
    Reply

    • TheThailandLife says

      Yes. The reality is that most digital nomads aren't declaring in Thailand, and in terms of working illegally they can skirt the law because it doesn't legislate for remote working for clients/companies overseas. Regardless, there is still a tax liability. Most people will pay their tax in their home country.
      Reply

      • bob says

        I'm sorry but I still don't understand where there is a tax liability for a Brit for example. They are UK-non-resident after they meet certain criteria set by the UK government... perhaps it takes them 18 months until they meet all the criteria. If they spent the last 6 of those months in thailand, they are now Thai-tax-resident. Now they can bring in tax-free any money that was earned outside Thailand in the previous tax year. Right?
        Reply

        • TheThailandLife says

          If the said digital nomad is earning this money from UK sources and the money is flowing through a UK bank account, then tax is still due in the UK, regardless of being a non-resident. I quote:Non-residents only pay tax on their UK income - they do not pay UK tax on their foreign income. Residents normally pay UK tax on all their income, whether it's from the UK or abroad. But there are special rules for UK residents whose permanent home ('domicile') is abroad.Even those who move to "tax havens" can run into issues when returning to the UK, because the HMRC has a bunch of compliance rules regarding bringing money back into the country that can trip you up. Like you, I'd rather not pay tax, but it's pay it in the UK or in Thailand. Take your pick.
          Reply

        • James brown says

          Question please on earnings.
          I’m a Uk non resident past 22 years and eligible to get a retirement visa for thailand now.
          Assuming I am trading US ETFs and other foreign shares what is my tax liability in Thailand plse?
          I would have no job or work permit however would plan to supplement income via investing myself, day trading or longer term in cases.

          Thanks!
          Reply

          • JamesE says

            Too many variables and not enough information. It all comes down to where your legal residence is, where the money is earned - i.e. US/UK/Other trading account, how it's currently being taxed, and when - relative to when it's earned - you plan on bringing the money into Thailand. This one you'll need to do some research on your own or hire a tax pro.
            Reply

    • Kevin says

      I am from the U.K. and live in Thailand on a retirement visa .
      I live here off my savings .
      I have an income from the U.K. that goes into a U.K. account
      I claim relief on this income through the Double Tax Agreement
      Do I have to pay tax on it in Thailand ?
      Do I need to declare it to the Thai tax man ?
      I live in Thailand on a retirement visa , does this make me a retiree ?

      Is the following statement true ?
      “Only income earned inside Thailand shall be subjected to tax during retirement.
      Therefore , you will not be obliged to pay any taxes for any income you have earned from overseas .
      Also , personal income taxes are not required for retirees in Thailand.
      Note that you can’t work in Thailand while on a retirement visa”

      Thank you in advance .
      Reply

      • TheThailandLife says

        You are a retiree. If you reside in Thailand for 180 + days of the year you are also a tax resident. Thailand may not pursue the law to the letter when it comes to retirees - probably because it's near on impossible to keep track of - but a tax return is in the legal code for people residing in Thailand for more than 180 days and for any monies remitted to Thailand in the year it is earned. Relief can be claimed via the double tax treaty if you have paid twice, once in Thailand and again in the UK. That's what the treaty is there for. It doesn't automatically prevent double taxation occurring, it just provides a way for you to claim money back and not have to pay twice. To avoid double taxation you should clarify your residency status with the HMRC. But if you're not paying tax in the UK on that income due to being non domicile then you would have to declare it in Thailand.
        Reply

  2. john squire says

    I have rental income in ireland if I move back to Thailand my asumption is my income from property in ireland will still have to be paid to revenue ie, but my uk state pension can be paid direct to thailand and not pay irish tax. Also I can arrange to stop paying irish tax on my shares
    Reply

    • TheThailandLife says

      Hi John, that's correct. Tax on your rental income will still need to be paid in Ireland. As for the pension, this is paid to you gross but still taxable. You would declare your rental income, pension income and shares income on your tax return. The key thing to remember is that all income has a tax liability. Living in Thailand doesn't make you exempt from tax. Money earned in Ireland is always taxable.
      Reply

      • john squire says

        You would declare your rental income, pension income and shares income on your tax return.
        Reference your statement written above you did not specify which tax return
        Now if I return to Thailand then I will have to inform the DWP ie pension payments office in England and they will want to (by law) pay my pension to a bank account in Thailand so i assume said income has to be declared on a thailand tax return so i also assume i will have register for tax in thailand.
        There is of course another way to skin this cat ie I can collect my pension in Thailand but declare it on my irish tax form but of course as i will not be living in ireland and the money was not earned in ireland it cannot be taxed by the irish revenue
        More as a hobby than a profession i buy and sell shares but the very high tax rates (only for middle class rich people do not pay) for CGT in ireland deter buying and selling shares hence people just keep hold of the shares until they need money. Now if I move to thailand and buy and sell shares there it is counted as normal income and my profits would not be taxed because it would be below the thailand allowances but I would have already claimed my allowances in ireland so i suspect the double tax agreement would be used to calculate my tax payments
        Reply

        • john squire says

          This is john squire again I have had another idea. I have six properties in Ireland. My plan which is just an idea.
          I lived in thailand 2006 - 2017 on a non img retirement visa. Therefore I believe I am not entitled to the 3 million baht residence visa and will have to take 10 million into the country. Therefore (my master plan) sell three of my irish properties and keep three. Take 10 million into thailand buy discount price small condos in pattaya about 5 and rent out four of them. I know the occupancy rate will be less than 30% for the first year, and I know that airbnb is not allowed for short term rentals
          For the first 2 years i would expect the rental income to only pay for the expenses, but tourism always bounces quickly just look at 9/11
          The condos would be in my wife's name, so work permit not required??
          Maybe me and my wife could seperate our tax returns, and she could give up her irish tax credits, and I keep my irish tax credits
          Gross before letting agent fees post covid and taking that tourism rebounds
          Ireland 20,000 euro pa
          thailand 14000 euro pa
          uk state pension 10000pa
          Would a 3 country income require double taxation ...would it become too complicated doe this idea fly
          Reply

          • TheThailandLife says

            You can buy a condo without having a work permit, so no need to put in your wife's name. Plus, rumuours are that foreign property investment is about to be made easier to boost the economy - quite what that will look like I don't know yet. In terms of taxation, I know the basics of tax in Thailand but but considering your assets and investment proposal I'd advise getting some professional advice. Given the circumstances, you want to ensure your tax position is the most favourable, and I'm not qualified to assure you of that.
            Reply

            • john squire says

              thanks for the answer it does help. However my idea of putting the condos in my wife's name is not because i am not allowed to buy condos ...i know i am allowed. The idea is based on the idea she is thai so allowed to work so the rental income would go into her name and she would not claim tax credits in ireland and go onto a double taxation system so tax and allowances would be calculated in each country. Then I would pay tax on my irish rental income and because i will be resident in thailand my state oap would go under the radar.
              ps please give me contact details of a tax expert who knows irish and thai tax systems
              Reply

    • Bob says

      But if you did not bring it into Thailand in the same tax year that it was earned, it should be tax-free according to ""Residents who receive income from abroad are taxable on that income if the income is brought into Thailand in the tax year in which it is received". And assuming that rental income is considered "assessable income" under their rules.
      Reply

  3. Jim says

    All my income (rental dividends) comes from the UK. If my UK accountant makes sure all taxes are dealt with in the UK there should be no issue? I don't work or have a company here just transfer living expenses monthly via transfer wise. Never heard of retirees or people transferring living expenses registering for tax. Alternatively if there is a crackdown, I could transfer living expenses from a savings pot (as long as money not earn/sent in current tax year). Don't want to register if I don't have to. Here in Tak I think they'd tell me not to bother anyway. Cheers.
    Reply

  4. ontap says

    Hi, i just received my offer from an IT company in Thailand as a "Consultant" and the rate say "inclusive of VAT". Do I really have to pay VAT for such income? I will be working remotely outside of Thailand (not my home country).
    Thanks!
    Reply

  6. Joanna says

    Hi, firstly thank you for the detailed article, but one thing is not clear to me
    ".. to declare money brought into the country" ? Does it mean, I have to declare ATM withdrawals from the foreign account, that I made during the past year? Thank you.
    Reply

    • TheThailandLife says

      No, it means you would declare money brought into the country on a tax return, preferably prepared by a Thai accountant. This is the letter of the law, though. Please do read on and get the whole picture from the article.
      Reply

  7. Thomas says

    Hi, My wife is looking at a teaching job earning a month: 78,000 baht plus 11,000 housing allowance, plus health insurance. School fees are free for my young son about 30,000 baht (not sure if included in taxed wage). And if I had a job at a language school on 30,000 baht- What tax would we be paying?
    Reply

    • JamesE says

      You'll want a tax pro on this one. But, in general, your income would be taxed at the source - the US in this case - and then it depends what you do with the money. If you bring the money into Thailand the same year it was earned then there may be a liability on some or all of the untaxed income. In any event bringing large sums into the kingdom will raise some eyebrows so you'll want to have somebody who understands the details and can explain it for you.
      Reply

  9. Bruce Jackson says

    I am a Canadian national working in a tax free country in the Middle East. I have offshore accounts in the Channel Islands. I was thinking of retiring to Thailand. My government pensions would be very small so I would be taking money out of my offshore funds. What does that mean for taxes.
    Reply

  10. Sanook! says

    Do you know how crypto currency profits are reported in Thailand?

    If I am using an exchange in HK and make a profit trading bitcoin, will that exchange send a letter to the Revenue Department or is it my responsibility to report it to the government?

    Thanks
    Reply

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