Family deduction up to 15.5 million VND from tax period 2026

On the morning of October 17, the National Assembly Standing Committee approved the adjustment of the personal income tax family deduction level. This is the first time the family deduction has been adjusted, after maintaining the level of 11 million VND for taxpayers and 4 million for dependents since July 2020.

Accordingly, the family deduction for taxpayers increased to 15.5 million and dependents to 6.2 million. Individuals are deducted insurance, family deductions, allowances, subsidies... the remaining amount is personal taxable income.

These levels increase by about 40% compared to current levels and are calculated based on the growth rate of average income per capita and GDP per capita, according to Deputy Minister of Finance Nguyen Duc Chi - the person authorized by the Government to present the report.

Deputy Minister of Finance Nguyen Duc Chi presented a report at the meeting of the National Assembly Standing Committee on the morning of October 17. Photo: National Assembly Information Portal

For example, an individual taxpayer (with no dependents) with an income of 17 million VND per month, from the 2026 tax period, they do not have to pay tax, after deducting insurance and family deductions for themselves.

Specifically, income 17 million VND per month, social insurance contribution equals income. The insurance amount of 10.5% (social insurance 8%, health insurance 1.5% and unemployment 1%) is 1.785 million VND. The total deductions are 17.285 million VND (after adding the personal deduction of 15.5 million), greater than income so they do not have to pay tax.

In case of having 1 dependent, an individual with an income of 24 million a month does not have to pay tax after deducting insurance. Specifically, after deducting 10.5% insurance, it is 2.52 million VND, plus the deduction for the individual of 15.5 million and 6.2 million VND for one dependent, totaling 24.22 million VND. Because the total deduction is higher than the income, they do not have to pay.

Similarly, in the case of 2 dependents, with an income of 31 million VND, they also do not have to pay tax.

Explaining this family deduction, Deputy Minister Nguyen Duc Chi cited data from the 2024 population living standards survey of the General Statistics Office, showing that Vietnam's average monthly income per capita is 5.4 million VND (at current prices).

The highest income group (including the richest 20% of the population - group 5) has an average income of 11.8 million per month. The representative of the Ministry of Finance said that the deduction of 15.5 million VND is nearly 3 times the average income per capita, 0.5-1 times higher than the common level applied in other countries, and the average of the 20% of the population with the highest income.

According to the Ministry of Finance, the state budget is expected to decrease by about VND21,000 billion per year compared to the current revenue level and number of taxpayers.

Reporting on the review of this content, Chairman of the Finance and Budget Committee Phan Van Mai said that the majority of opinions in this agency agreed with the direction of increasing the family deduction level and basically agreed with the family deduction level proposed by the Government.

However, according to Mr. Mai, some opinions say that the family deduction level may be appropriate at the present time, but because it is only calculated based on the growth rate of the indicators in 2025 compared to 2020, it does not meet the reality.

Therefore, he suggested that the Government consider to have the necessary space, consider the plan to calculate the increase rate according to the growth rate of income or GDP per capita expected to be implemented in 2025 and the following years compared to that in 2020. In addition, some opinions also proposed to stipulate a higher family deduction level than the Government's plan.

Mr. Phan Van Mai also recommended that the Standing Committee of the National Assembly consider not issuing a separate resolution on adjusting the family deduction level at this meeting. Instead, the specific provisions on the family deduction level of personal income tax and its effective date should be considered, discussed, and specified in the draft Law on Personal Income Tax (amended) to ensure consistency and ease of application.

Source vnexpress.net

Source: https://baophutho.vn/giam-tru-gia-canh-len-15-5-trieu-dong-tu-ky-tinh-thue-2026-241254.htm