Personal Income Tax Deduction in Vietnam: An Increase in 2026

Vietnam is introducing updated personal income tax deductions to better reflect current living costs and support taxpayers. The experts from ECOVIS AFA Vietnam provide an overview of the key changes and their implications for individuals and families.

The National Assembly has recently approved Resolution No. 110/2025/UBTVQH15 on adjusting the family circumstance-based deduction level of personal income tax. Specifically:

• The deduction level for taxpayers has increased to 15.5 million VND per month (186 million VND/year). Under current regulations, individuals without dependents must pay personal income tax if their total income from salary and wages exceeds 11 million VND per month (132 million VND/year).
• Additionally, the deduction for each dependent has been increased to 6.2 million VND per month. Under current regulations, individuals with dependents receive a deduction of 4.4 million VND per dependent per month.

Resolution No. 110/2025/UBTVQH15 takes effect from January 1, 2026 and will apply to the 2026 tax period. At the same time, the National Assembly Standing Committee’s Resolution No. 954/2020/UBTVQH14 dated June 2, 2020, on adjusting the family deduction level of personal income tax, will cease to be effective.

With the new deduction rates, individuals can retain a larger portion of their income, especially households with small children or elderly family members to support. This decision has been positively received by the public, who believe the adjustment is timely and aligned with actual living conditions, ensuring that the policy provides fair and reasonable incentives, contributes to improving taxpayers’ living standards, and creates motivation to encourage work and productivity.

The above contents are researched and summarized by ECOVIS AFA Vietnam from widely published legal documents and articles. If you would like to discuss any issues in more in-depth, please contact us via the information below: