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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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Comments Sort by : newest | oldest

  1. Manikandan says

    I working in morocco (North Africa) but my company located in Thailand. I'm getting my pay everymonth from Thailand. My company every month deduct 15% of my salary amount for tax. I have no idea about this really I need pay or not. Also my company no give any proof for tax payments.
    Reply

  2. Celena says

    Hi, I’m work in Thailand and holding Work pass. Every month,My employer deducted the tax payment from my salary.

    According to my employer, Tax is calculated under the assumption that the payments of employment income are made throughout the entire length of the year. The annual amount of tax is calculated at the progressive tax rates prevailing. This tax is then divided by the number of payments; the result shall be the tax to be deducted.

    I’m ceased my employment after 7 months. Tax deduction is more than my actual taxable amount. Can I know how to get the refund from company?
    Reply

    • TheThailandLife says

      Under normal circumstances the company's accountant should be able to initiate the rebate with the tax office. Since you have left the company, you'll probably have to try and sort it out yourself. Are you at a new company with an accounts team? If so, they can advise you on what you need to do.
      Reply

  3. Marcus says

    Hi, Im a British citizen planning on living in Thailand with my dividend payments, thus will be in the country over 180 days per year. If the tax return is in Thai, Im guessing i will require a thai accountant. Do you know a general cost for this type of work?
    thank you
    Reply

    • Bob says

      Dividends are tax free as long as the money is only brought into thailand after 1 year. So if you're the super safe type of person, just make sure that dividend is paid by from the company to your personal UK bank account rather than direct to your Thai bank account and don't bring those particular ££ into Thailand for at least one year. In reality, if you send money from your UK bank to your Thai bank, or simply use a UK bank visa debit card in a 7-11 shop, Thai govt. has no idea whether those funds were made this year or in 1994.
      Reply

  5. Roben says

    I got more confused after reading this article. I'm a tourist on a visa exempt for more than 180 days and I'm going to start working remotely as a contractor doing software development for an American company on a long term project. I'm not planing on leaving Thailand. According to the article, I will be working illegally and there isn't much I can do about it. On the other hand, since I'm living in Thailand for over 180 days I'm a tax resident. Can / should I still pay my taxes?
    Appreciate some insights on this.
    Reply

    • TheThailandLife says

      The maximum tourist visa stay is 60 days, or 90 if you do an extension at immigration for 1,900 Baht. On a single entry tourist visa you get 60 days. On a multiple entry you get 6 months but a maximum 60 days stay at one time. When the 60 days is up you have to leave the country. So you won't be staying for more than 180 days in one go, even if you do an extension on one of your stays as previously mentioned.You will be working in the grey area. Please read this article about working online: https://www.thethailandlife.com/working-online-thailand
      Reply

      • JamesE says

        "I'm a tourist on a visa exempt for more than 180 days"? You've already been in Thailand for 180 days? Does immigration know this? If yes to the first and no to the second, then you've got bigger problems than working in the gray area.

        It will be very difficult to do what you want on a tourist visa. Every time you do a visa run (for the foreseeable future) you'll be required to quarantine. TTL's numbers are spot-on so that would be an awful lot of money spent on ASQ hotels.

        Have you considered one of the other visas like an Elite or Investor? Also, if you're a US citizen, you have access to a few other options - like starting your own consulting company - under the Treaty of Amity. That would give you a legit B visa and take you out of the gray area.
        Reply

  6. YshiadZ says

    Hi! I am working as a full time teacher and at night I have after school classes In a tutorial center. My school deducted my salary for the tax and the tutorial center also deducted my income for the tax. Do you think it will create a problem? Thanks
    Reply

  7. John says

    "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."

    If you need to demonstrate why you need the tax ID number and don't have a work permit, will that create a problem?
    Reply

    • TheThailandLife says

      The office will ask you why you need to pay tax if you don't have a work permit and aren't working here. I've read elsewhere that some people have been told they don't need to pay tax without a permit. Probably best to go through an accountant. What is your situation?
      Reply

  9. Tara Chi says

    Since I am allowed to WFH and I moved to Thailand to live with my fiancé, my earning and bank accounts remain in overseas. I only brought very little money with me into the country.
    Am I subject to Tax for the last 5 months of those salary that I earned and banked overseas?
    or I only need to declare the very little money I brought with me when I first came December 2021 (which is not the same calendar year)?
    Or I don't have to pay any tax so long as I leave here before the 180 days due?
    Reply

    • Sandro Paolini says

      Thailand is one of the rare countries that don‘t care about your income from outside the Country. And inside you are not allowed to work. That means tax-free heaven. However there is one exempt, you need to bring the money from the last year. This is best solved by having two Thai bank accounts and on one you send money on the end of the year and live from it in the next year and repeat that on the other account at the end of the year. It is clearly visible the money comes from outside and is from the last year.
      Reply

  10. Iano says

    Hi. So, if I am on a retirement visa is it right I cannot work? I would like to spend over 180 days in Thailand, work remotely for European clients (I am a software engineer) and fully comply with Thailand tax law. I.e be tax resident. Is that possible at the minute? Thanks, ian
    Reply

    • JamesE says

      Yes, it's possible, but not on a retirement visa. But why do you want to be a "tax resident"? You get no benefits. Are you planning on being paid in Thai Baht? Are you planning on setting up your business in Thailand? Thailand has several visas that might let you do what you want - SMART visa, Investor visa, Elite(maybe?) - all of which come with some requirements. There are also some visa plans addressing digital nomads, but none of them have been finalized. Then there's the Gary Area where many expats work online but not "legally". You might want to detail your plans and discuss them with an immigration attorney based in Thailand.
      Reply

      • john squire says

        I will be returning to Thailand from ireland
        In 2018 I spent 4 months in ireland
        2019 7 months 2020 7 months and it looks like I will be here most of 2021 so I might well get the unwanted prize of normal resident which will be stuck with me causing me to be to pay irish tax on money I earn outside ireland ie stock market and pension
        Maybe applying for tax resident in thailand will prevent me coming one in ireland
        Reply

      • Iano says

        Thanks JamesE. I guess my basic feeling is if I am in Thailand for more than 180 days I should be paying something to the local economy. I suppose I’d do that through general spending. Not necessarily taxes. I could pay taxes on money repatriated to the country just to show some contribution.
        Reply

          • john squire says

            Is the 3 million baht 5 year retirement visa operating if yes do you apply in home country or do it the same as normal retirement visa
            what are the advantages and disadvantages
            Oh yes I read that for a retirement visa the 800,000 has to be in a thai bank account 2 months before you apply..if this is true then you have to transfer the money to thailand before you travel to thailand
            Reply

            • JamesE says

              In the US currently all three retirement visas are being issued. As each of those - O (Retirement), O-A, and O-X - have different requirements you should check with your home country's Thai Embassy. The O (retirement) has no financial requirement when issued in your home country (at least in the US...) but is issued with an initial 90-day validity. The O-A's financial requirement can be met with US deposits for its initial issue with the Thai deposit requirement kicking in (for the plain O (R) as well) when you do your extension. The O-X requires the ฿3-million to be in Thailand from the start. But again, check with the embassy in your home country to see your specific requirements.
              Reply

          • john squire says

            Your the boss so I will ask you
            In theory buying and selling shares is working
            In theory working without a work permit is illegal in thailand
            Yet it seems that non thais are allowed to play the stock market whilst living in Thailand and do not pay CGT ...is this all true
            Reply

        • JamesE says

          Hi Iano, I understand your feeling. My take would be that your money would be better spent *in* the economy as opposed to *as* taxes. Remember, Thailand is a VAT nation so much of what you buy will help fund the government.
          Reply

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