The New 5 Band PIT Scale for 2026
Law 109/2025/QH15 cut the salary scale from seven bands to five and widened them. It applies to salaries from the 2026 tax period, even though the law as a whole takes effect on 1 July 2026.
| Taxable income a month | Rate |
|---|---|
| Up to 10 million | 5% |
| 10 million to 30 million | 10% |
| 30 million to 60 million | 20% |
| 60 million to 100 million | 30% |
| Over 100 million | 35% |
The top rate is still 35%, but it now starts at 100 million a month instead of 80 million.
Family Deductions for You and Your Dependants
From 1 January 2026 every taxpayer deducts ₫15,500,000 a month for themselves and ₫6,200,000 for each registered dependant. The old amounts were ₫11,000,000 and ₫4,400,000.
With two dependants, the ₫25,000,000 salary pays ₫0 of tax a month, against ₫343,750 with none. A dependant has to be registered with the tax office through your employer.
Children under 18, adult children who study or cannot work, and parents or a spouse with little income can qualify. Each person can be claimed by only one taxpayer, so working parents decide between them who registers a child.
Compulsory Insurance and the 2026 Caps
| Insurance | Employee rate | Salary cap a month |
|---|---|---|
| Social insurance (BHXH) | 8% | ₫46,800,000 to June, ₫50,600,000 from July |
| Health insurance (BHYT) | 1.5% | Same as social insurance |
| Unemployment insurance (BHTN) | 1% | ₫106,200,000 in Region I |
The social and health caps are 20 times the base salary, which rose from ₫2,340,000 to ₫2,530,000 on 1 July 2026. Unemployment insurance is capped at 20 times the regional minimum wage. On ₫25,000,000 none of the caps apply and insurance is ₫2,625,000 a month.
What the Employer Pays on Top
Gross salary in Vietnam is the contract figure before any employee deduction. The employer adds its own share of the three insurances, 21.5% of the insured salary in total, which does not appear on your payslip.
So a ₫25,000,000 gross contract costs the company about ₫30,375,000 a month. Offers quoted as net salary mean the employer has already worked backwards from the take home figure, and it bears any change in tax.
Worked Example on 25 Million Dong
- Insurance: 8% + 1.5% + 1% of ₫25,000,000 = ₫2,625,000
- Family deduction: ₫15,500,000
- Taxable income: ₫6,875,000 a month, all in the 5% band
- PIT: ₫343,750 a month
- Net salary: ₫22,031,250 a month
Under the 2025 scale and deductions the same salary paid ₫956,250 a month in tax, so the 2026 rules save ₫612,500 a month.
Net Salary at Six Gross Amounts
| Gross a month | Insurance | PIT 2026 | PIT on 2025 rules | Net a month |
|---|---|---|---|---|
| ₫12,000,000 | ₫1,260,000 | ₫0 | ₫0 | ₫10,740,000 |
| ₫20,000,000 | ₫2,100,000 | ₫120,000 | ₫440,000 | ₫17,780,000 |
| ₫25,000,000 | ₫2,625,000 | ₫343,750 | ₫956,250 | ₫22,031,250 |
| ₫40,000,000 | ₫4,200,000 | ₫1,530,000 | ₫3,310,000 | ₫34,270,000 |
| ₫60,000,000 | ₫5,226,500 | ₫4,354,700 | ₫7,693,375 | ₫50,418,800 |
| ₫100,000,000 | ₫5,626,500 | ₫14,162,050 | ₫19,330,725 | ₫80,211,450 |
No dependants. At ₫60,000,000 the social and health caps start to matter, and tax is ₫4,354,700 a month.
Tet Bonus, Overtime and What Is Taxed
- Taxed: salary, the 13th month or Tet bonus, most allowances and benefits in kind.
- Exempt: the extra part of overtime and night shift pay above normal hourly pay.
- Before tax: the three compulsory insurances and the family deductions.
A Tet bonus is taxed in the month it is paid, so that month shows a higher PIT. The annual finalisation evens out the bands.
Monthly Withholding and Annual Finalisation
Employers withhold PIT each month on the monthly scale. After the year ends, the tax is settled on annual figures: twelve months of income, insurance and deductions against bands twelve times as wide. With a steady salary the two give the same answer, which is what the calculator shows.
Assumptions and Sources for Vietnam
- Resident employee on a labour contract of three months or more, insured on the full gross salary.
- Region I minimum wage for the unemployment cap; no allowances paid outside the insured salary.
- The base salary change on 1 July 2026 applied to half the year.
Sources: Law 109/2025/QH15 on personal income tax, Resolution 110/2025/UBTVQH15, Vietnam Social Security and Government portals. Rates for 2026. See also the Philippines Gross to Net Calculator.
Frequently Asked Questions
How much is 25 million VND gross in net?
About ₫22,031,250 a month in 2026 with no dependants.
What is the personal deduction in 2026?
₫15,500,000 a month for the taxpayer and ₫6,200,000 for each dependant.
How many PIT bands are there in 2026?
Five: 5%, 10%, 20%, 30% and 35%, replacing the old seven band scale.
How much insurance does an employee pay?
10.5% of salary: 8% social, 1.5% health and 1% unemployment, each up to its cap.
Does the new tax law start in July 2026?
The law takes effect on 1 July 2026, but its salary rules apply to the whole 2026 tax period.
Is the Tet bonus taxable?
Yes. It is salary income and is taxed with the month it is paid in.
How much tax does the 2026 law save?
On ₫25,000,000 a month with no dependants, ₫612,500 a month compared with the 2025 scale and deductions, because both the bands and the personal deduction are wider.