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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

      • Terence says

        We are now non resident in our home country and wish to settle in Thailand and do everything properly. Our interest is earned in a different country entirely on which we pay withholding tax only. We do not remit in the same year the income is earned - it is always the following year, so do we still need to register and pay Thai tax? Many thanks.
        Reply

        • TheThailandLife says

          It depends on your country of origin and the rules they have in place. For example, in the UK, even if you are a non-resident citizen living abroad in Thailand, you still have to pay tax on any income arising from a UK source. There are specific exceptions such as disregarded income, which consists principally of dividends and interest, but not rental income.
          Reply

  2. Svein Magne Sivertsen says

    I am 78 year old man that stay in Thailand. I have a pension in norway that goes to a Norwegian bank.
    Every month i got to pay a fully tax to the tax Office in goverment in norway..
    Until know i got letter from the Norwegian embassy in Bangkok they telling
    thai immigration that i got garanti from ambassy that i got full covery
    of my staying in Thailand.

    Normally i use Visa card if i want to take out some monny.


    So why do i need to pay pension tax to Thailand. I do not work at all,only a old pension. I am 78 old man.
    Can you please answer this mail to me.
    Regard
    Mr.Svein Magne Sivertsen
    Reply

  3. dhruv says

    Hi,

    I work in thailand since 4 years , i am paying health insurance premium for my non working wife ( non Thai) and my daughter . I have taken Aetna Health insurance for my family ( i am not included in that because i am covered with my employer health insurance).
    Can i claim the tax refund or any tax benefit.
    Can you please help as i i pay very high tax in Thailand .
    Reply

  4. graham north says

    Good Evening, I have lived in Thailand for 6 years but constantly travel. For example I was only in Thailand 160 days this year and 156 last year.
    I am paid by UK company and pay no tax in UK, only national insurance.
    Am I write that I pay not tax in Thailand?
    Reply

  5. Riza says

    My husband got a private contract from the government in Thailand. The contract is for about 2 years. A cross check got issued to him by the Ministry of Works and Labor and when he was depositing it to his account in the U.K., he was told to pay income tax first before he can deposit the check. What is the law concerning this? Why is he going to pay the taxes first when the project has not started yet?
    Reply

    • TheThailandLife says

      I don't quite understand. You wrote: "a crosscheck got issued to him by the ministry of works and labour and when he was depositing it into his account in the UK...."When you say crosscheck I assumed you meant a background check prior to him starting work. But you indicate he deposited something into his account, so I'm assuming they paid him money. Who told him to pay tax, the bank in the UK, or the Thai government who issued the contract? The question is not clear, so I am a little confused about the circumstances.
      Reply

        • TheThailandLife says

          Right, so it is a crossed cheque with specific instructions, to pay income tax before cashing. I'm surprised they are paying him before the project has started, or is it some sort of down payment? It seems quite a strange arrangement to me. Anyway, if that is the instruction then that is what he has to do. If it is a large sum of money, or he is expecting further payment that will amount to a fairly large sum of money, it would be a good idea to go and see an accountant and get everything processed correctly. I have never come across this situation in Thailand, but it would make sense because otherwise he could cash the money and then leave Thailand without paying the tax due. Unless his company is UK based and he pays tax in the UK, in which case he could let them know and he would be exempt under the double tax treaty.
          Reply

  6. Peter says

    Hi, I have been Thailand for about 2 years and have resided in Thailand for most of that time.

    A bank in a foreign country is liquidating some of their existing investment funds and require me to:
    a) divest my part of the investment fund and transfer the cash amount to my chosen bank account
    b) To reinvest the amount into their new investment fund in their foreign country.

    My question is if this banks liquidation of their fund will trigger a tax event to be paid by me in Thailand? None of liquidated or funds monies are expected to be or will be transferred to Thailand.

    Thank you.
    Reply

    • TheThailandLife says

      In the event of a cash payment due to the liquidation, I assume the tax will be due in the territory where you pay tax. Your accountant would be able to advise on this. Do you not pay tax each year on the investment gain? Or will tax be due on the withdrawal/end of the investment? Either way, you're no brining the money into Thailand, and I assume you don't pay tax here, so any tax would be due in the territory in which you have a tax liability.
      Reply

  7. Chris Lovick says

    Hi,i have been living in Thailand for 8 years and never paid any tax as I believed that because all my income is in the u.k. and I employ a tax adviser to complete a tax return every year on my behalf therefore all taxes are paid in the u.k. on any income earnt in the u.k.Since I have been in Thailand I have been retired,do not work at all and transfer money over every month from my u.k. income.Am I ok in my thinking that I should not be taxed on anything in Thailand?
    Regards,
    Chris
    Reply

  8. Dave says

    Hi I am working in Thailand on a company work permit. My work permit states I earn 50K baht a month and I pay tax and insurance based on that. I am only earning 25 to 30k a month . Should I paying less tax or should i being getting the amount my work permit states?
    Reply

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