The 2026 tax policy is expected to be a significant milestone in the Vietnamese tax system reform roadmap, in line with the government's strategy to 2030. Amendments to the Personal Income Tax Law and tax management regulations for business households aim not only to regulate income fairly but also to adapt to fluctuations in the consumer price index (CPI). Tax experts believe that changes to personal allowances and progressive tax rates will directly impact the income of millions of workers nationwide.
According to the latest drafts and guidelines at Resolution 27-NQ/TW, The 2026 tax policy will focus on simplifying the tax structure and improving management efficiency through electronic invoices. This change requires businesses and individuals to be well-prepared in terms of accounting and financial management. The following article from MAN – Master Accountant Network will analyze the latest changes in detail to help readers proactively plan their taxes.
Overview of the 2026 Tax Policy Changes for Personal Income
Entering 2026, the focus of tax reform will be on loosening tax thresholds to alleviate the financial burden on salaried workers in the context of inflation. This change is based on a realistic assessment of the current living standards and cost of living in major cities.
Progressive tariff structure: From 7 tiers down to 5 tiers
One of the most fundamental changes in the 2026 tax policy is the reduction of the personal income tax brackets from the current 7 to 5. This reduction simplifies the calculation process and expands the income brackets to lessen the burden on middle-income earners. A detailed comparison table is provided below. Personal income tax schedule apply:
| Content | Before 2026 | From 2026 |
| Number of tax brackets | 7 steps | 5 steps |
| Personal allowance (for employees) | 11 million VND/month | 15.5 million VND/month |
| Dependent deduction amount | 4.4 million VND/month | 6.2 million VND/month |
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Unit of measurement: million VND/month |
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Details of the new personal income tax schedule effective from 2026.
In the 2026 tax policy, the tax brackets are widened, helping workers with relatively high incomes avoid jumping to higher tax levels too quickly. Here is the table. Personal income tax rate New progressive tiered system:
| STT | Taxable income/month | Tax payable |
| 1 | Up to 10 million VND | 5% |
| 2 | Between 10 million and 30 million VND | 15% |
| 3 | Between 30 million and 60 million VND | 25% |
| 4 | Over 60 million to 100 million VND | 30% |
| 5 | Over 100 million VND | 35% |
This adjustment in the 2026 tax policy helps to create a more rational tax structure, focusing heavily on regulating high-income groups and reducing the burden on unskilled workers.
Tax Policy 2026: Income Threshold for Taxable Income
Based on the new deductions, the threshold for net monthly income (excluding insurance) to start paying taxes will be determined. personal income tax This will change significantly. This means that many workers with average salaries will no longer be subject to taxation, or the amount of tax they have to pay will be significantly reduced.
| Number of dependents | Before 2026 (Million VND) | From 2026 (Million VND) |
| 0 | 11,0 | 15,5 |
| 1 | 15,4 | 21,7 |
| 2 | 19,8 | 27,9 |
| 3 | 24,2 | 34,1 |
| 4 | 28,6 | 40,3 |
Tax Policy 2026: Other Legitimate Deductions When Settling Taxes
Outside personal allowance, The 2026 tax policy will maintain and standardize other deductions to encourage social welfare. Corporate accountants need to pay attention to valid documents to optimize tax payments for employees according to the following categories:
- Personal deductions: For yourself and your dependents (parents, children, relatives who are unable to work).
- Insurance deductible: This includes mandatory insurance contributions (social insurance, health insurance, unemployment insurance) and voluntary retirement fund contributions (up to the prescribed limit).
- Social contribution deductions: Donations to charitable, humanitarian, and educational organizations recognized by the State.
Tax policy 2026: Personal income tax on extraordinary income.
The 2026 tax policy also outlines a roadmap for tightening and increasing transparency regarding income sources other than salaries and wages, particularly high-value asset transactions and income from digital platforms.
| Types of unusual income | Personal income tax payable from 2026 |
| Prizes, gifts; copyrights, franchises; inheritance | 10% with income exceeding 20 million VND |
| Transfer of gold bars | 0.1% transfer value/transfer |
| Real estate transfer | 2% transfer value/transfer |
The introduction of a tax on gold bars in the 2026 tax policy is a noteworthy new development, aimed at tightly managing the precious metals market.
Tax policy reform 2026 for household businesses
Household businesses are strongly impacted by regulations on the digitalization of tax administration.
The 2026 tax policy aims to transform large-scale household businesses into enterprises or businesses with equivalent management structures.
| Management content | Before 2026 | From 2026 |
| Taxable revenue threshold | 200 million VND/year | 500 million VND/year |
| Lump-sum tax, business license tax | Have | – |
| Declare and pay taxes based on actual revenue. | – | Have |
| Electronic invoices from POS machines (Revenue > 1 billion VND/year) | – | Have |
| Doing business on social media (Facebook, TikTok, etc.) | Self-declaration | Pay taxes on actual revenue. |
| E-commerce platforms (Shopee, Lazada, etc.) | – | Filing and paying taxes on behalf of others. |
The 2026 tax policy mandates that business households with annual revenue exceeding 1 billion VND must use electronic invoices generated from point-of-sale (POS) systems. This helps to increase transparency regarding actual revenue and gradually eliminate the outdated "lump-sum tax" method.
FAQ – Frequently Asked Questions about Tax Policy 2026
Why was the personal income tax rate scale simplified from 7 brackets to 5 brackets?
The streamlining of the tax schedule in the 2026 tax policy aims to simplify administrative procedures while consolidating low-income groups to reduce the effective tax rate for the majority of workers.
If I do business on Facebook, how will the 2026 tax policy affect me?
According to the 2026 tax policy, social media platforms will cooperate in providing data, and you will have to declare and pay taxes based on actual revenue instead of paying a fixed amount as before.
Will the new personal allowance rates be applied immediately from the beginning of 2026?
According to the roadmap, the 2026 tax policy regarding the new personal deduction (15.5 million VND) is expected to take effect from January 1, 2026, after approval by the competent authorities.
Conclude
The 2026 tax policy marks a major turning point in modernizing Vietnam's tax administration system. Understanding the new tax schedule regulations, increased personal allowances, and electronic invoice requirements is a prerequisite for optimizing financial obligations. These changes present not only compliance challenges but also opportunities for businesses to professionalize their accounting systems and achieve sustainable development.
With a team of highly experienced professionals, MAN – Master Accountant Network proudly serves as a trusted partner providing services. auditing services, MAN is a leading tax accounting and financial consulting firm. We are committed to helping your business stay updated on 2026 tax policies and establish standardized accounting systems. Let MAN help you reduce your administrative burden and focus entirely on business development.
Service contact information at MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
