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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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  2. Eric Lam says

    Hi, I and three other friends jointly bought a condominium lease in Phuket which is to be leased out part of a hotel the property is still under construction now will be completed by 2019.

    I have a few questions as follows:-

    1) The developer has offered a 5% interest for the full payment we made - is this taxable ? and If yes how are we to file the income tax in Thailand ? Is there a minimum amount and below where we are not required to file tax forms ?

    2)Is there a different treatment for rental income that we expect to receive in the future ?

    3) The property is held jointly in 4 names, how do we file income tax assuming that we have to ? Is it filed jointly or separately filed by 4 separate persons ?

    4) Based on what I have read all of us will be non tax resident in Thailand as we do not spend more than 180 days in Thailand in any one year.

    5) Can you recommend an accountant or tax preparer that can help me file the tax forms in Thailand as none of us are anywhere near Thailand ? and How much would this usually cost ?
    Reply

  3. Kunal Mitra says

    I propose to take up residence in Thailand in next 2 months and propose to reside for more than 180 days & presumably will come under Tax net. I shall have no income in Thailand. My present income is full time online trading in CFD, Forex, Commodities etc. through my broker in Cyprus. Will it be considered a foreign income & the amount repatriated to Thailand will be taxed(? The amount will not be taxed in my home country since I shall be treated non-resident there
    Reply

      • TheThailandLife says

        I have deleted your capital letters. There is no need to shout.What part haven't I answered. I have answered this in full twice now. Please read my latest answer thoroughly. You can ask any reputable accountant and they will tell you the same.
        Reply

    • TheThailandLife says

      So you will be non-resident in your home country but living in Thailand. So your tax liability will be in Thailand. Thailand is not a tax haven, so when you bring your untaxed earnings into Thailand to spend, if you have not paid tax in your home country then you will be subject to tax in Thailand. Whether you choose to declare this or not is your business, but at some point, assuming your home country has an income tax system too, you will have to pay tax. Unless of course you incorporate a company in a tax-free country and go to spend the money there.As I have said previously: Avoiding tax is the easy part. You can incorporate a company offshore and be non-domicile in your home country. But gaining access to the money to spend is the hard part. Because the moment you transfer money from the country your company is incorporated in, you will have to pay tax. To avoid this, you would need to take up residence in a tax-free country too. But even then, what if you visit your home country and need to transfer money to a bank account there to spend. This is where you become unstuck.
      Reply

      • EDO says

        Dear Sir,
        still there is an unclear part in your answer.
        You say "if you bring your untaxed earnings...."
        What about if one brings his existing capital? Which might be taxed or not in the past.

        What about if you bring your earnings in the next year? The eranings are already considered a capital, as somewhere was mentioned that the eranings are taxable in Thailand if brought into Thailand in the same year when earned.

        Please clarify this?

        regards
        Reply

        • TheThailandLife says

          I quote: "Earnings arising outside Thailand - includes inter-alia job income; rental income; pension income; investment income (ie interest and dividends) that does not come from activities in Thailand - is only taxable in Thailand to the extent that you bring it into Thailand in the same Thai tax year that you earned it. If you are able to show that you are not relying on current year income for current year spending in Thailand (ie you are living off 'capital' (= earnings of previous years)) you will not be taxed in Thailand for those foreign (to Thailand) earnings. In short, Thailand does not tax any of its residents on worldwide income that is not remitted in the same tax year. If you are confident that you can demonstrate that you are spending in Thailand out of prior year foreign earnings and not out of current year earnings you can claim a tax refund."But you still need to file a tax return. And as I've said, even if you are exempt from paying tax in Thailand, you still have a tax liability in your home country when the money is brought in, regardless of where you have been stashing it.
          Reply

          • ado says

            Dear Sir,
            Thank you. It becomes clearer.
            I guess nobody wants to pay unnecessary taxes for the Politicians to become richer.
            So if you spent all your earnings in the next tax year in Thailand, then you do not need to pay anything in your home country as there will be nothing to transfer there. Correct?

            1. Anyway I can keep my earnings under company name and transfer as needed, when needed.
            Are there any rules in Thailand about offshore companies that belong to Thai residents?
            If I am a Thai resident and have a company outside Thailand, which does not do any business in Thailand, what are the tax liabilities for such a company and the Thai resident/shareholder?

            2. if you hold your assets outside the home country and live in Thailand, what happens when the banks report you accounts to the Thai authorities?
            Will this couse any problems in Thailand? Those will be assets that have been earned outside Thailand and not brought into Thailand and will become capital in the next year.


            Regards
            Reply

            • TheThailandLife says

              Correct. But you still need to file a tax return.1. You are brining money into Thailand, so again, you need to file a tax return to show the money is not being spent in the year it is earned.2. Why would there be a need to report you? You should already be transparent about your earnings through your tax return.If you are earning a considerable income and you are seeking to avoid paying tax, it really would pay for you to spend some of that money on an accountant. You live in Thailand where accountants are relatively inexpensive, so just pop down to your local accountants and pay for an hour of their time to fully understand the requirements. My knowledge is proficient for the average person, but not for complex tax avoidance.Tax may make some politicians richer in corrupt countries, but Thailand offers free medical care to all its citizens, including the very poor and disabled. So you if you are benefiting from living in Thailand and using public services such as parks, roads, schools, hospital, cultural sites, etc., then it won't hurt you to contribute to society and help those less fortunate than yourself.
              Reply

              • Kunal Mitra says

                I am equally interested to pay tax in a country where I am resident and live permanently. All I wanted to know whether my type of income will be treated as foreign income and whether the tax will be imposed only on amount that I shall bring in to Thailand in the particular tax year. I think my query is clarified by your answer
                Reply

              • edo says

                Dear Sir,
                Thank you.
                You are correct, however there are few factors I need to consider, that is why I ask the questions in details.

                I am not a Thai resident. I am considering moving as Retiree to a country where I pay limited and reasonable amount of tax. It might be Malaysia, Thailand, Mauritius etc. Once the country is selected, I will deploy a tax consultant in the relevant country.

                1. In regards to tax returns-do I have to fill tax return based on Worldwide Incomes if I am a Thai resident/non-citizen on Retirement visa? I know that all money sourced from Thailand have to be in the tax return, but what about the incomes outside Thailand and not brought in Thailand?
                2. All banks are starting reporting based on the residency of the account owner. So my account will be reported in Thailand if I am a Thai resident. If I do not declare in the Thai Tax return the money earned and kept outside Thailand, this might cause problems.

                And last but not least, I have been living in lots of countries and everywhere I end up paying tax and not getting any benefits from it. I have always had to pay for hospital, security, education for my children, government services. Maybe somewhere taxes are used for good of the people, but I have not seen this.

                Even Thailand is known as corrupted country-you better know the past and what was in the news in regards to your ex-president.
                And even If I pay taxes in Thailand, what benefit do I get for me and my family? As a non-citizen, one cannot get medical aid, on the contrary, the hospitals rip foreigners apart when they end up there. I need a very expensive insurance to cover part of the costs. Schools, government services, etc., all is paid for. Just an example - To visit a park, a foreign retiree is paying few times higher fee than a local.
                So excuse my statements, but that is the reality I see.

                Regards
                Reply

  4. bryan kinsella says

    I am considering retiring to Thailand from the UK. I would like to understand the tax position on receiving my private pensions in Thailand. I assume it would be treated as foreign income but would it be taxed?
    Reply

  5. IForget says

    I find this site useful as it clears up the gossip/ misinformation area. Someone had a question about land prices in or around major cities. I live in Surin province. Land is measured in RAI (ไร่๗ ไ้รแ้), which is some fraction of an acre. I think either 3/4 or 4/3, but it doesnt really matter. Here 20 Rai of land outside Surin costs 3m Baht, or 1 Rai = 150,000 บาท. Your Thai partner will own it, but that does not stop you sharing any profit on the land (either crop or resale, if a contract between you exists between you.
    Reply

    • TheThailandLife says

      I'm not 100 percent sure on this. I could be wrong... but under Thai labour laws I don't think you could profit directly from harvesting crops or the resale of land, unless you set-up a Thai company and registered your interest in the land through that company. In this situation, I think you'd probably want to say that your partner chooses to give/gift you x amount of money rather than that you are profiting from the land, as it may be seen at a legal level that your wife bought the land with your money, put it in her name and is giving you the profit. Your wife can just gift you money from her income (not necessarily attributed to the land), which she would have paid tax on anyway. In this regard it would just be a case of a wife giving her husband money.1 rai = 0.39 acres (according to Google) :)
      Reply

  6. Eugene says

    Hello,
    the law say:
    "A resident of Thailand is liable to pay tax on income from sources in Thailand as well as on the portion of income from foreign sources that is brought into Thailand."

    If one has incomes outside Thailand and does not bring those in Thailand in the year of earning, those are non taxable in Thailand.
    Please advise what is wrong with this as it is noty mentioned in your article?
    Reply

    • T says

      Also, in response to the very first comment below ThailandLife itself says

      "TheThailandLife says

      In terms of earnings on investments overseas, while living in Thailand, there’s a rule that foreign income is only subject to tax in Thailand if you bring it into the country in the same year it was earned."

      So ThailandLife please kindly clarify. Thank you.
      Reply

      • TheThailandLife says

        You have clarified the question with my answer:) Foreign income is only subject to tax in Thailand if you bring it into the country in the same year it was earned. But also remember that it is likely your country has a double tax treaty with Thailand, so if that income has already been taxed in your home country then it is NOT eligible to be taxed in Thailand.
        Reply

        • Eugene says

          Hello,
          I will try to ask the question in clearly manner.
          Let's assume that I reside in Thailand and I am a tax resident in Thailand.
          Let's assume that I receive incomes/interest in Offshore bank account from cash deposits and Intellectual Property Rights(Royalties) and those are not taxed in my home country as i do not reside there.

          Accordingly the law reading those incomes are not taxable in Thailand if they are remitted in the next tax year or not remitted at all in Thailand.
          IS THAT CORRECT?
          The offshore banks will start reporting the account balances in the country of residency(Thailand in this case) as from this year.
          Will this cause any tax liabilities/problems for a Thai resident (on retirement visa)?
          Reply

  7. mark desmond hughes says

    I got married in January last year and work for a company legally in Bangkok. However, they did not record my marriage. They are now aware. Do I deserve a tax rebate and, if so, how much? My salary is above 1 million baht a year but below 1.5 million. Does my wife get a rebate? She is currently on 5% tax?
    Regards,
    Mark
    Reply

  8. Jan says

    Hello! Thanks for the very useful information!
    Do you have a recommendation for an accountant, I would like someone to file my tax return for me for 2016. Nearly all my income is from renting out my four Thai properties - is it correct that there is a 30% deduction for rental income of homes/condominiums?
    Best wishes
    Jan
    Reply

  9. Angelo says

    The accountant of a friend of mine living in Thailand claimed: if you have no work permit, and mainly work "online" for business partners outside of Thailand, it is tax free. As: "no work permit" -> "no tax number" -> "no taxes". However this clearly implies: you are not self employed working in Thailand for Thai business partners or are "employed" by a Thai employer.
    Anyway, no idea if that is "correct", just liked to mention it in regards to your "Resident Vs Non Resident" paragraph, which basically contradicts the accountant I mentioned.
    Reply

    • TheThailandLife says

      Well, technically he is right because you need a tax number to pay tax. But they'll happily issue you one :)The point here is that if you are paying tax on your income outside of Thailand they you don't need to worry, if that is, you are a resident of a country that has a double tax treaty with Thailand.The issue here is that a lot of people are "hiding out" in Thailand and working online, believing that Thailand is a grey tax zone, or even a tax-free haven. It isn't.Sure, you don't need a work permit (yet) because the current law hasn't been updated to enforce rules for this type of work and they aren't sure how to tackle it, but regardless of the work permit issue your income needs to be taxed either in your home country or in Thailand.If you earn money, you have a tax liability. You will have to pay tax on those earnings, somewhere, at some point. Unless you want to move to the Cayman Islands.
      Reply

  10. Alan says

    Hi, thanks for informative article.

    I have a Thai spouse and currently living in Thailand on the Thai Marriage Visa (and considered a resident).

    I currently have a small consulting project for which I am paid B140,000 for services performed within Thailand.

    Since this "small" income is tax-free (in the 0% tax bracket), do I have to submit income tax returns? PS. The company which commissioned the project is deducting 3% withholding tax from the total amount.
    Reply

    • TheThailandLife says

      The company you did the work for deducted 3% withholding tax on the basis that you were being paid as a business entity outside of Thailand. I'd leave it this way, because by definition you have carried out this work illegally, without a work permit, or a business visa -- which would enable you to carry out certain acts of business while on a visit to Thailand. You can't work on a marriage visa. If you had a registered Thai company, you would file a tax return, regardless of whether you earned under the threshold to pay tax. I'd pocket the money and keep quiet :) But be careful doing such work going forward.
      Reply

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