{"id":4322,"date":"2026-01-21T14:26:06","date_gmt":"2026-01-21T07:26:06","guid":{"rendered":"https:\/\/thue.man.net.vn\/?p=4322"},"modified":"2026-01-21T14:57:55","modified_gmt":"2026-01-21T07:57:55","slug":"thu-nhap-tinh-thue-tncn","status":"publish","type":"post","link":"https:\/\/thue.man.net.vn\/en\/thu-nhap-tinh-thue-tncn\/","title":{"rendered":"Detailed guide on how to calculate taxable personal income for 2026 (latest version)"},"content":{"rendered":"

Income calculation <\/span>personal income tax<\/span><\/a> This is the most important factor that all employees and accounting personnel need to master to ensure compliance with tax laws and regulations in 2026. <\/span>Resolution 110\/2025\/UBTVQH15<\/span><\/a>, The personal income tax policy has undergone significant changes with the increase in family allowance deductions and the adjustment of the progressive tax rate schedule from 7 brackets to 5 brackets, aiming to reduce the financial burden on people in the new economic context.<\/span><\/p>\n

Accurately determining taxable personal income not only helps individuals manage their finances effectively but also assists businesses in optimizing payroll costs and avoiding errors during tax settlement periods. With the significant changes to Vietnam's tax legal system effective January 1, 2026, we need a deeper understanding of the process for determining taxable income, deductions, and applicable tax rates. Let's analyze this in detail with MAN \u2013 Master Accountant Network below.<\/span><\/p>\n

What is taxable personal income and why is it important to determine it correctly?<\/b><\/h2>\n

Based on <\/span>Personal Income Tax Law No. 109\/2025\/QH15<\/span><\/a>, Taxable income for personal income tax purposes is the remaining income after deducting all legally permissible deductions from total taxable income. This figure is directly multiplied by the progressive tax rate to determine the final amount of tax that an individual must pay to the State budget monthly or annually.<\/span><\/p>\n

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What is taxable personal income and why is it important to determine it correctly?<\/figcaption><\/figure>\n

Misunderstanding the nature of taxable personal income often leads to two contradictory consequences: underpaying taxes resulting in late payment penalties, or overpaying taxes causing economic harm. In today's digitized tax management environment, tax authorities can easily access data, therefore accuracy in calculation is a top priority for all accountants and professional tax consultants.<\/span><\/p>\n

At what salary level does income begin to be subject to personal income tax?<\/b><\/h2>\n

Effective January 1, 2026, the tax threshold has been significantly raised. For resident individuals without dependents, taxable income will only become subject to personal income tax when total income from salaries and wages exceeds VND 15.5 million per month (equivalent to VND 186 million per year). This adjustment is based on the actual consumer price index (CPI) and the minimum living standard of workers.<\/span><\/p>\n

Below is a table showing the income thresholds at which tax liability begins, based on the number of dependents:<\/span><\/p>\n\n\n\n\n\n\n\n\n
At what salary level does income begin to be taxable for personal income tax purposes?<\/b><\/caption>\n
Number of dependents<\/b><\/td>\nIncome threshold at which taxable income for personal income tax purposes begins (Million VND\/month)<\/b><\/td>\nNote<\/b><\/td>\n<\/tr>\n
0 people<\/span><\/td>\n> 15.5<\/span><\/td>\nMandatory insurance has been deducted.<\/span><\/td>\n<\/tr>\n
1 person<\/span><\/td>\n> 21.7<\/span><\/td>\nAn increase of 6.2 million from zero people.<\/span><\/td>\n<\/tr>\n
2 people<\/span><\/td>\n> 27.9<\/span><\/td>\nSuitable for a family of 2 children.<\/span><\/td>\n<\/tr>\n
3 people<\/span><\/td>\n> 34.1<\/span><\/td>\nUpper middle income threshold<\/span><\/td>\n<\/tr>\n
n people<\/span><\/td>\n> 15.5 + (nx 6.2)<\/span><\/td>\nGeneral formula<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Therefore, if your income is lower than the thresholds mentioned above, your taxable income will be zero, and you will not have to pay tax.<\/span><\/p>\n

The most accurate formula for determining taxable personal income.<\/b><\/h2>\n

To accurately calculate the amount of tax payable, taxpayers need to follow the legally mandated formula sequentially. Separating taxable income from deductions is a crucial step in determining taxable personal income. This process requires meticulous review of payroll documents and accompanying family deduction records.<\/span><\/p>\n

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The most accurate formula for determining taxable personal income.<\/figcaption><\/figure>\n

General formula<\/b><\/h3>\n

According to Article 8 of the Personal Income Tax Law 2025, the formula for determining taxable personal income is established as follows:<\/span><\/p>\n\n\n\n
\n

Personal income tax (PIT) taxable income = Taxable income \u2013 Deductions<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

In this context, taxable income is understood as the total personal income received from the paying entity, minus any tax-exempt income. After obtaining this figure, we then subtract further amounts. <\/span>personal deductions<\/span><\/a>, Income from insurance and charitable activities is used to arrive at the final taxable income figure for personal income tax calculation.<\/span><\/p>\n

Identify taxable income<\/b><\/h3>\n

Taxable income includes salaries, wages, allowances, and subsidies of a salary nature. However, to optimize taxable income for personal income tax purposes, accountants need to exclude the following non-taxable items:<\/span><\/p>\n