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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. Konrad says

    At the Thai revenue department page: the following paragraph defines taxable person:Taxpayers are classified into “resident” and “non-resident”. “Resident” means any person residing in Thailand for a period or periods aggregating more than 180 days in any tax (calendar) year. 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. A non-resident is, however, subject to tax only on income from sources in Thailand.I am interpreting this that if I actually transfer only 50% of my income to Thailand, then I also have to pay taxes only for these 50% (as a digital nomad, I have income only in Europe and the customer payments are made to European banks). Or do I misinterpret this paragraph?
    Reply

    • TheThailandLife says

      If you stay 180 days + in any one year, and the money you bring in from Europe was earned in that same tax year, then you would have to pay tax. But, will you not pay tax on this income in your home country? Where are you registered to pay tax? Your country most likely has a double tax treaty with Thailand -- meaning you only pay tax once. If you pay tax back home, you don't need to pay tax in Thailand.
      Reply

      • Ginuwine says

        But if a resident, because stay in Thailand more than 180 days+ and is therefor only taxable in Thailand, and not in Sweden anymore, even though im Swedish nationality - but owns a company in Finland and Malta, get dividends every year, if the companies did good.. Get a divident payout of lets say 15.000 euro in 2016 on my finland or maltese bank account, then can transfer in 15.000 euro to Thailand in 2017, taxfree? Because its not same calendar year... Then it would be a Tax Haven?

        And what about the money, if never brought into Thailand?
        Reply

        • TheThailandLife says

          Thailand isn't a tax haven. You have a tax liability. You must pay tax somewhere, whether in Thailand or elsewhere. Unless you have a company set up in a tax haven - but even then you may run into trouble when the profits enter your home country, because at that point they may become taxable; this is the case in the UK.The reason the Thai law states 'money earned in the same year' is because it presumes this money will go untaxed otherwise, and that you are now treated as resident in Thailand because you stayed more than 180 days in a year. At this point you would inform your home country that you are paying tax in Thailand, and due to the double tax treaty you would not have to pay tax back home. However, this may affect your tax status in your home country and indeed your tax set up. In truth, most people who have a company back home and pay tax back home do not register for tax in Thailand when they stay longer than 180 days in a year. The law is generally aimed at those who are retired in Thailand but bringing in untaxed income.
          Reply

          • thailo says

            Note that only the US and Eritrea have citizenship-based taxation.

            Thailand is effectively a tax haven when you only bring in money from past years. Most governments don't care about citizens who are not residents anymore, so for most people: if you live in Thailand, have a company in a tax-free country, and you receive company dividends outside of Thailand, that money is not taxable.

            @Ginuwine: The problem that I see with your situation is that Finland might consider you a resident for tax purposes, because of the ownership of a company there. A common criteria for tax residency is the "centre of economic interests", and your centre of economic interests is clearly Finland.
            Reply

            • TheThailandLife says

              Thailand is not a tax haven. While it is true that money brought in from previous years earnings is not subject to tax, if you are earning money in Thailand, from your home country or from elsewhere, you have a tax liability. I have been through the many scenarios with an accountant at Price Waterhouse Coopers. I could technically hide out in Thailand and only bring in earnings from previous years to avoid tax in Thailand, but if this money is earned in the UK it is taxable there. Even if not earned in the UK, when the money is brought into the UK (via bank account or other) it becomes subject to tax. There are very few ways to avoid paying tax, certainly now in the UK. It can be done, but people get snagged when they go home and transfer money to a bank account in their home country that goes over the tax threshold, or need to stay in the UK for longer than 180 days in a year.
              Reply

              • thailo says

                Thanks for your response. I agree that if you earn money in the UK it is taxable there.

                However, if you earn money in a tax-free country, you can spend as much time as you like in Thailand, and have nothing to declare, as long as you always bring in money from past years.

                Also, all dividends, capital gains, etc. that happen overseas are not taxable in Thailand (if they remain outside of the country).

                Naturally, one's home country plays a big role in this, and that's why a rule of thumb for tax planning is to cut all ties with one's home country.

                A person from the UK with nothing there, not even a cellphone number, who spends their time mostly in Thailand, and with businesses in Singapore and Estonia, can legally avoid personal income tax and possibly corporate income tax as well, if correctly planned.

                Thailand wants to address this with the introduction of CFC rules, but it might be a while before those rules are in place.
                Reply

              • John says

                Sorry if I'm stating the obvious, but just to confirm if I make my salary in Singapore, reside in Thailand, move my salary over a year later so as to not pay Thai tax, the savings I then have in Singapore will be taxed when I move them to the UK at a later date to say buy property for example? ANyone have any recommendations for a good tax consultant to best work this out.
                Reply

                  • John says

                    No tax in Singapore as I'm not a resident. So what happens if this is not moved into Thailand? Are you almost better off moving it into Thailand then the UK so it's passed through a countries tax system? All be it maybe none is due if it's from the previous financial year?
                    Reply

                    • TheThailandLife says

                      If you bring it into Thailand in the year after it is earned then tax won't be due. But you still have a tax liability. So when you bring that money into the UK it becomes eligible for taxation. Unless you have an accounting setup where you are protecting your money through a tax exempt territory and accounting system, you will need to pay tax at some point. Unless of course you plan to never return to the UK and there is a resident. Or you simply decide not to declare your earnings to HMRC, which I would not advise.

        • Boris says

          I'm wondering this same thing - if I transfer only 50% of my income into Thailand, and pay tax on that 50%, what about the amount I leave in my home country? Will the home country expect me to pay tax on that amount too, or will the fact that I'm paying my legal share of taxes in Thailand suffice?
          Reply

  2. Sarai says

    Hi, Pls answer my question...
    I'm Thai. Living in India with one job that pays tax here and doing part time consultancy in U.K online. I will get paid as per days of working. There is no fix per year. The money will be paid through my bank acct in Thailand. Do I need to pay tax on that in Thailand? If yes, how much would that be?

    Thank you
    Reply

    • TheThailandLife says

      It depends on the tax law in India. Technically you are doing this work in India (from your computer), but the money is being paid to Thailand and never enters India. So it depends on how they view this under their tax law. That said, in my experience this income is taxable in Thailand. So whether you pay tax depends on how much you earn. Under 150k Baht is non-taxable. See the table in the post.
      Reply

  5. kJ says

    Hi,
    If i move to Thailand and have an income from a foreign source and the amount is paid to a a bank account outside of Thailand- Do I have to pay taxes in Thailand when I don´t pay taxes in the other country?
    Thanks
    Reply

    • TheThailandLife says

      It depends: Will you be residing in Thailand for more than 180 days in the calendar year? And will you bringing in income that was earned in the same tax year? If yes, then you are required to pay tax on that income in Thailand.
      Reply

  9. Johnny says

    Hello I do have a question about income and taxes. First of all I have a Thai friend that wants to hire me at his business. Is it true that for US citizens they must pay you a minimum of 60,000 baht a month in order to hire you and give you a work permit. If this is true then he will have to pay me 720,000 baht a year and at a 15% tax rate that is 108,000. So are you saying that at the end of the year I would be responsible for 108,000 baht but with a deduction of 60,000 baht for my wife and I and 15,000 for a child which would be 75,000 I would need to pay 33,000 baht to the Thai tax office every year?
    Reply

    • TheThailandLife says

      It would seem that way, though I'm not 100% clear if the spouse and child deductions apply to non-Thai partner/children, or partner/children of non-Thai worker.

      There is an update to the deduction as follows:
      Deductible expenses for income under Sections 40 (1) [employment income and other fringe benefits derived from an employment contract] and 40 (2) [service income derived from services that are not professional services and are not services provided as part of a business that requires substantial capital investment] of the Thai Revenue Code would increase from 40% of income (capped at 60,000 baht) to 50% of income (capped at 100,000 baht).
      Reply

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