Taiwan to Exempt Low-Income Earners from Income Tax Starting 2026
Starting from the May 2026 tax season, individuals with annual incomes of NTD 620,000 (about USD 20,000) or less will no longer be required to pay income tax.
On September 21, 2025, President Lai Ching-te stated that those making around NTD 50,000 a month or below will be exempt, while higher earners will shoulder more of the tax burden, providing the government with greater resources for social care.
He also noted that a family with two young children(under five) earning NTD 1.64 million per year, or a household supporting two elderly parents with income near NTD 2.12 million, would qualify for tax exemptions under amendments to the Income Tax Act, approved in August.
It is estimated that 40% to 50% of households could end up paying no income tax at all, pointing out that the top 1% of taxpayers already account for nearly half of income tax revenues.
