5 progressive brackets for residents, 18% flat for non-residents
Taiwan's hidden benefit: no capital gains tax on securities, low effective rates, and generous deductions. A NT$1,500,000 earner pays ~NT$120,000 (~8%). Non-residents: 18% flat on Taiwan-source income. First NT$590,000 taxed at just 5%. Standard deduction NT$131,000 (single). Filing period: May 1-June 30.
Taiwan applies a progressive individual income tax system with 5 brackets ranging from 5% to 40%. Tax residents (183+ days per year) are taxed on worldwide income using progressive rates. Non-residents are taxed at a flat 18% on Taiwan-sourced income only. Taiwan offers generous exemptions and deductions including a standard deduction of NT$131,000 (single) or NT$262,000 (married filing jointly). The tax year follows the calendar year with annual returns filed May 1 to June 30.
| Taxable Income | Tax Rate |
|---|---|
| NT$0 - NT$590,000 | 5% |
| NT$590,001 - NT$1,330,000 | 12% |
| NT$1,330,001 - NT$2,660,000 | 20% |
| NT$2,660,001 - NT$4,980,000 | 30% |
| Over NT$4,980,000 | 40% |
Note: These are marginal rates - you only pay the higher rate on income within each bracket.
Source: Ministry of Finance eTax Portal
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Get Paid as a Contractor →Taiwan has 5 progressive tax brackets for residents: 5% on net taxable income up to NT$590,000, 12% on NT$590,001-1,330,000, 20% on NT$1,330,001-2,660,000, 30% on NT$2,660,001-4,980,000, and 40% on income over NT$4,980,000.
Foreigners staying in Taiwan less than 90 days pay 18% withholding tax on Taiwan-source salary from local employers only. Those staying 90-183 days pay 18% flat tax on all Taiwan-source income. Residents (183+ days) use the progressive rates on worldwide income and can claim deductions.
Taiwan offers a standard deduction of NT$131,000 (single) or NT$262,000 (married). Alternatively, itemize deductions for donations, insurance premiums (up to NT$24,000), medical expenses, and rental payments (up to NT$120,000). The personal exemption is NT$97,000 per person.
Taiwan's annual income tax filing period is May 1 to June 30 for the previous calendar year. Returns can be filed online through the eTax Portal or at tax offices. Extensions are available for overseas residents or special circumstances.
Taiwan has relatively low taxes compared to Western countries. The 5% starting rate covers income up to NT$590,000 (~US$18,500). There's no capital gains tax on securities, no inheritance tax below NT$13.33 million, and no VAT (just 5% business tax on most goods). Effective rates for middle incomes are typically 10-15%.
Last Updated: March 2026