From 2026, salaries under 17 million VND do not have to pay personal income tax

On the morning of October 17, the National Assembly Standing Committee voted to approve a resolution adjusting the family deduction level of personal income tax, applicable from the 2026 tax period.

Salary under 17 million does not have to pay personal income tax. (Illustration photo).

Accordingly, the deduction level is increased to 15.5 million VND/month for taxpayers and 6.2 million VND/month for each dependent, causing the budget to reduce revenue by about 21,000 billion VND/year.

According to calculations, an individual taxpayer (if there are no dependents) with an income of 17 million VND/month, after deducting 10.5% insurance premiums, will have 1.785 million VND plus 15.5 million VND (deduction for the taxpayer himself), so he does not have to pay tax (the income exceeding 17.285 million VND/month will be subject to tax with a tax rate starting from 5%).

In case an individual taxpayer has 1 dependent with an income of 24 million VND/month, after deducting insurance premiums (2.52 million VND) plus 15.5 million VND (deduction for the taxpayer himself), plus 6.2 million VND (deduction for 1 dependent), he will not have to pay tax (the income exceeding 24.22 million VND/month will be subject to tax with a tax rate starting from 5%).

In case the individual taxpayer has 2 dependents, in this case the income level of 31,155 million VND/month is still not subject to tax (the income exceeding 31,155 million VND/month will be subject to tax with a tax rate starting from 5%).

Deputy Minister of Finance Nguyen Duc Chi said that the increase in family deduction this time is based on two calculation directions:

Option 1 is based on the consumer price index (CPI), increasing by about 21.24% compared to 2020, equivalent to a deduction of 13.3 million VND for taxpayers and 5.3 million VND for each dependent. However, this option reduces the budget by about 12,000 billion VND/year.

Option 2 - selected and approved - based on the growth rate of per capita income and per capita GDP, is expected to increase by 40.9% compared to 2020.

“ This policy will help reduce financial burdens, support people in the context of increasingly high living costs, and ensure fairness between tax obligations and actual income, ” affirmed Mr. Nguyen Duc Chi.

Deputy Minister of Finance Nguyen Duc Chi said that adjusting the family deduction level for taxpayers will contribute to reducing taxpayers' obligations in the context of increasing prices and inflation compared to 2020.

Adjusting the family deduction level according to the growth rate of GDP per capita and average income per capita also contributes to reducing tax obligations for taxpayers at a higher level than adjusting according to the CPI index, people enjoy the fruits of the country's socio -economic development and social life is improved.

With the expected reduction, Deputy Minister Nguyen Duc Chi assessed that people with lower incomes will benefit more.

Although the increase in the family deduction level will have an impact on reducing the State budget revenue from personal income tax in the first few years, according to the Government's proposal, when the family deduction level is higher, it means that the amount of tax payable will be less, and people's disposable income will increase.

"This will contribute to stimulating increased household spending and social consumption, contributing to the development of production and business, thereby indirectly increasing budget revenue from other sources in the medium and long term," Mr. Chi stated his opinion.

Hoang Dung

Source: https://vtcnews.vn/tu-2026-luong-duoi-17-trieu-dong-khong-phai-dong-thue-thu-nhap-ca-nhan-ar971725.html