Vietnam to Raise Monthly Personal Income Tax Deductions

On 17 October 2025, the National Assembly Standing Committee of Vietnam approved a resolution announcing the increase of the monthly deduction standard for personal income tax effective from the 2026 tax year. 

According to the resolution, starting from 2026, the monthly personal deduction for individual income taxpayer will be increased to VND15.5 million, and the monthly deduction for dependents will be increased to VND6.2 million per person. 

Currently, the monthly personal deduction for individual income tax taxpayer in Vietnam is VND11.1 million, and the monthly deduction for dependents is VND4 million per person. Qualified dependents refer to children under the age of 18, or children over the age of 18 but are disabled and incapable of working. In addition, the spouses or the parents of the taxpayer who are unable to work or have low income not exceeding VND1 million are also qualified dependents. 

After the increase of the monthly deduction for personal income tax, taxpayers without dependents whose monthly income is less than VND15.5 million are not required to pay personal income tax. Taxpayers with one dependent whose monthly income is less than VND21.7 million are not required to pay personal income tax as well.