About this calculator
Taiwan’s comprehensive income tax is filed per household each May for the previous calendar year’s income. Gross income is reduced by exemptions （免稅額） for every person in the household, a standard deduction （標準扣除額） — or itemized deductions if they are larger — and special deductions （特別扣除額）, among which the salary deduction (up to NT$218,000 per earner for 2025 income) is the one almost every employee claims. If the statutory basic living expense per person, multiplied by household size, exceeds the main deductions, the difference comes off as well.
Taiwan indexes these amounts to inflation: when cumulative CPI rises at least 3% against the base year, the exemption, deductions and band thresholds move up. That is exactly what happened for the 2026 income year （115年度）, announced in November 2025 — so this calculator carries both years, each with its own table, rather than pretending one table fits all.
How to use it
- Pick the income year — 2025 for the return filed in May 2026, 2026 to estimate next year.
- Enter the household’s total monthly salary (annual salary is monthly × 12) and how many people earn it.
- Enter the household size and any members aged 70+ or under 18.
- Add other special deductions if you claim them, then read the tax, your band and the after-tax salary.
The formula
The progressive difference is the official shortcut that makes the one-line formula equal to slicing income band by band; the table below shows the slices. For 2025, the basic-living-expense difference is max(0, NT$213,000 × household size − (exemptions + standard deduction + comparison special deductions)); special deductions are counted in that comparison except the salary, rent and property-loss deductions — this calculator treats the “other special deductions” you enter as comparison-eligible, so if you claim the rent deduction, a basic-living difference shown here may be overstated by up to that amount.
Worked example
A single filer with a monthly salary of NT$100,000 (NT$1,200,000 a year) in 2025: exemptions NT$97,000, standard deduction NT$131,000, salary special deduction NT$218,000 — a basic-living comparison of 97,000 + 131,000 = NT$228,000 already exceeds NT$213,000, so no extra difference. Net taxable income is NT$754,000, in the 12% band: tax = 754,000 × 12% − 41,300 = NT$49,180, an effective rate of 4.10%, leaving NT$1,150,820 after tax. The same salary under 2026 rules (higher exemption and deductions) pays NT$45,620.
Sources: Ministry of Finance announcements and Taxation Administration Q&A (2025/114年度 amounts and bracket table; 2026/115年度 amounts announced November 2025); basic living expense NT$213,000 for 2025 per MOF. Verified October 2026. Last updated: October 2026.
Frequently asked questions
Why do so many single salaried workers owe nothing?
For 2025 income, a single employee earning only salary pays no tax up to NT$446,000 — exactly the NT$97,000 exemption + NT$131,000 standard deduction + NT$218,000 salary special deduction. For 2026 income the threshold rises to NT$464,000 (101,000 + 136,000 + 227,000). Withholding during the year may still take money out of a paycheck below the threshold, which is then refunded on filing.
Standard or itemized deductions — which should I use?
Whichever is larger. Itemized deductions include insurance premiums (up to NT$24,000 per person, including your employee labour and health insurance premiums), medical expenses, mortgage interest (up to NT$300,000 for an owner-occupied home) and rent (up to NT$120,000 — note this itemized rent route is separate from, and cannot stack with, the NT$180,000 rent special deduction). Most single renters without large medical or insurance bills find the standard deduction wins; this calculator uses the standard route.
How does the basic living expense deduction work?
The Taxpayer Rights Protection Act guarantees that income needed for basic living is not taxed. Each year the MOF announces a per-person amount (NT$213,000 for 2025). Multiply it by your household size and compare with the sum of your exemptions, standard (or itemized) deduction and most special deductions — the salary, rent and property-loss special deductions are excluded from the comparison. Any excess is deducted from gross income. It mainly helps larger households with several dependants and modest deductions elsewhere.
What changed for the 2026 income year （115年度）?
Inflation indexation (CPI +4.13% against the base) raised the exemption to NT$101,000 per person, the standard deduction to NT$136,000 single / NT$272,000 married, the salary special deduction to NT$227,000, and every band threshold (top band now starts at NT$5,190,001, with the top progressive difference at NT$949,100). A 2026 amendment to the Income Tax Act also gives dependent minor children the 1.5× exemption (NT$151,500), matching seniors. The 2026 basic living expense amount had not been announced as of October 2026, so this calculator applies no basic-living-expense difference for 2026 — if one will apply to you, your actual tax will be slightly lower than shown.
Does this cover income besides salary?
The structure is the same for all comprehensive income — business, professional, rental, interest, dividends and other categories are pooled into gross income before deductions — but the salary special deduction only applies to salary. This calculator assumes your household income is salary and you take the standard deduction, which covers the large majority of employee households; landlords and business owners should treat the output as a floor estimate.
What formula does this Taiwan Income Tax calculator use?
Annual salary = Monthly salary × 12; taxable income = Annual salary − exemptions − standard deduction − salary special deduction − other special deductions − basic-living-expense difference; Tax = Taxable × band rate − progressive difference （累進差額） The progressive difference is the official shortcut that makes the one-line formula equal to slicing income band by band; the table below shows the slices. For 2025, the basic-living-expense difference is max(0, NT$213,000 × household size − (exemptions + standard deduction + comparison special deductions)); special deductions are counted in that comparison except the salary, rent and property-loss deductions — this calculator treats the “other special deductions” you enter as comparison-eligible, so if you claim the rent deduction, a basic-living difference shown here may be overstated by up to that amount. The worked example on this page applies the formula step by step with real numbers, so you can verify the result by hand.