The short answer
To reduce your personal income tax in Thailand, you lower your taxable income with the deductions the law allows. Some are automatic (THB 60,000 personal allowance, 50% of your salary for work costs up to THB 100,000). The others you must claim and prove: family allowances, insurance bought from a Thai insurer, Thai Social Security, Thai ESG and RMF funds, home loan interest, rooftop solar, donations. Expats have one more lever: how and when they bring money from abroad into Thailand.
Want advice and help with your deductions?
Book a tax optimisation consultation: 40 minutes with our Thai tax team, by video or phone, in English, French or Thai.
How much one deduction saves you
Thai tax is progressive. A deduction saves you your top rate on the amount deducted: THB 100,000 deducted saves THB 25,000 if your top rate is 25%, but only THB 5,000 if it is 5%.
| Taxable income (THB) | Rate | Saving per THB 100,000 deducted |
|---|---|---|
| 0 to 150,000 | 0% | 0 |
| 150,001 to 300,000 | 5% | THB 5,000 |
| 300,001 to 500,000 | 10% | THB 10,000 |
| 500,001 to 750,000 | 15% | THB 15,000 |
| 750,001 to 1,000,000 | 20% | THB 20,000 |
| 1,000,001 to 2,000,000 | 25% | THB 25,000 |
| 2,000,001 to 5,000,000 | 30% | THB 30,000 |
| Above 5,000,000 | 35% | THB 35,000 |
1. What is deducted automatically
You do not need to do anything for these, but you should know they exist, so you do not count them twice:
- Personal allowance: THB 60,000, for every taxpayer.
- Salary and pension: 50% for work costs, up to THB 100,000.
- Freelance service fees: 50%, inside the same THB 100,000 limit as salary.
- Business income: 60% flat for activities listed by law, or your real costs with receipts.
- Rent from a house, condo or building: 30% flat, or your real costs with receipts.
Choosing between the flat rate and your real costs is already an optimisation: if your real business or rental costs are higher than the flat rate and you can prove them, your tax falls.
2. Family allowances
| Allowance | 2026 amount | Main conditions |
|---|---|---|
| Spouse | THB 60,000 | Registered marriage, spouse with no income |
| Each child | THB 30,000 | Aged 20 or under, or 25 or under and at university; child's income not over THB 30,000; adopted children only up to 3 children in total |
| Extra for 2nd and later child born in 2018 or after | THB 30,000 more | Legitimate child, not adopted |
| Each parent aged 60 or more | THB 30,000 | Parent's income not over THB 30,000; one child claims per parent |
| Disabled dependant | THB 60,000 | Disability card naming you as carer |
| Pregnancy and childbirth | Up to THB 60,000 | Per pregnancy, with medical receipts |
Non-residents keep the personal allowance. The spouse allowance applies only if the spouse is a Thai resident, child allowances only for children living in Thailand, and the parent and disabled dependant allowances only if that person is a Thai resident.
3. Insurance and Social Security: Thai policies only
This is where many foreigners lose money. Only policies from an insurance company licensed in Thailand are deductible. An international policy or a policy from your home country, sold by an insurer not licensed in Thailand, does not count, even if it covers you in Thailand.
| Item | 2026 limit | Condition |
|---|---|---|
| Life insurance | THB 100,000 | Insurer licensed in Thailand, policy of 10 years or more |
| Your own health insurance | THB 25,000 | Thai insurer, counts inside the THB 100,000 above |
| Your parents' health insurance | THB 15,000 | Thai insurer, parents' income not over THB 30,000 |
| Pension (annuity) insurance | 15% of income, up to THB 200,000 | Thai insurer, inside the THB 500,000 retirement limit |
| Thai Social Security | THB 10,500 | Contributions actually paid in 2026 |
Tell your insurer you want the deduction: insurers now send the data to the Revenue Department, and a premium they did not report is hard to claim.
4. Thai ESG and RMF funds
These two funds are the biggest levers for salaried people with a high income.
- Thai ESG and Thai ESGX: up to 30% of your income, maximum THB 300,000 for both funds together, for units bought in 2026. Keep them 5 years. The THB 300,000 limit is confirmed for 2026 purchases; the rule for 2027 has not been announced, so do not count on it.
- RMF: up to 30% of your income, inside a THB 500,000 limit shared with your provident fund, pension insurance and other retirement savings. Keep the units until age 55 and for at least 5 years.
- Provident fund (PVD): your own contributions, up to 15% of salary, also inside the THB 500,000 limit.
- Other savings: National Savings Fund contributions and some other retirement products also count inside the THB 500,000 limit.
- SSF: no longer deductible since the end of 2024.
Sell too early and the tax saved must be repaid with a surcharge. These funds suit people who expect to stay in Thailand for several years.
5. Your home in Thailand
- Home loan interest: up to THB 100,000 a year, for a loan from a bank, finance company, insurer, cooperative or employer welfare fund in Thailand, secured by a mortgage on your home in Thailand. A loan from a private person or a developer's instalment plan does not count. Ask your bank for the yearly interest certificate.
- Rooftop solar: up to THB 200,000 for a system installed on your home from 3 March 2026 to 31 December 2028. Conditions: connected to the grid with the electricity authority's approval, up to 10 kWp on a home meter, the meter and the full electronic tax invoice (e-Tax Invoice) in your name, one claim per person.
6. Donations
- General donations to approved charities and temples: deductible up to 10% of your income after the other deductions.
- Some donations count twice, within the same 10% limit, for example to public hospitals through the e-Donation system.
- Political party: up to THB 10,000.
Give through e-Donation whenever you can: the receipt reaches the Revenue Department directly.
7. Aged 65 or over
A Thai tax resident aged 65 or over has up to THB 190,000 of income exempt, on top of the allowances above. For retirees this alone can remove most of the tax on a modest pension.
8. Freelance and business income: choose the right structure
For freelancers and business owners, the method matters as much as the deductions: flat rate or real costs, how you invoice, and whether your activity should run through a Thai company rather than in your own name. The right answer depends on your figures, your visa and your work permit. This is a typical subject for a consultation.
Want advice and help with your deductions?
Book a tax optimisation consultation: 40 minutes with our Thai tax team, by video or phone, in English, French or Thai.
9. Money from abroad: the biggest lever for expats
Since 1 January 2024, foreign income is taxed in Thailand when you bring it in during a year in which you are a Thai tax resident. Planning your transfers can change your tax a lot:
- Savings from before 2024 are not taxed when you bring them in, if you can prove when the money was earned. Keep them in a separate account.
- The year matters: under this rule, money brought in during a year in which you are not a Thai tax resident is generally not taxed in Thailand.
- Tax treaties: Thailand has treaties with many countries. Tax paid abroad can sometimes be credited against the Thai tax on the same income.
- LTR visa: the Wealthy Global Citizen, Wealthy Pensioner and Work-from-Thailand Professional categories are exempt on foreign income brought in. Highly-Skilled Professionals can instead choose a 17% flat rate on their Thai salary.
These rules depend on facts and documents: check your situation before your next large transfer.
A worked example
Anna is a Thai tax resident with a salary of THB 2,400,000 in 2026. She paid THB 10,500 of Social Security.
| Without planning | With planning | |
|---|---|---|
| Thai life and health insurance | 0 | THB 70,000 |
| Home loan interest (Thai bank) | 0 | THB 60,000 |
| RMF | 0 | THB 200,000 |
| Thai ESG | 0 | THB 300,000 |
| Taxable income | THB 2,229,500 | THB 1,599,500 |
| Thai tax 2026 | THB 433,850 | THB 264,875 |
| Tax saved | THB 168,975 |
The saving depends on your own rate and on meeting every condition. Use our calculator to see your figures.
See what you could save
Free calculator with the 2026 rate bands.
Mistakes we see every year
- Claiming a foreign health or life insurance policy: it is not deductible.
- Buying Thai ESG or RMF in January for the previous year: it counts for the new year.
- Selling Thai ESG or RMF units too early, and repaying the tax saved with a surcharge.
- Forgetting the 50 Tawi withholding certificates, or the insurer and bank certificates sent in January.
- Bringing mixed money from abroad without proof of when it was earned.
Your checklist before 31 December 2026
- Estimate your 2026 tax and your top rate with our calculator.
- List your family allowances: spouse, children, parents aged 60 or more.
- Check that your life and health policies are with a Thai insurer, and tell the insurer you want the deduction.
- Decide on Thai ESG and RMF before your fund closes its 2026 subscriptions.
- Gather your bank interest certificate, solar e-Tax Invoice and e-Donation receipts.
- If you have money abroad, plan your transfers with us before bringing it in.
Questions we are asked every December
How can I reduce my personal income tax in Thailand?
Use the deductions the law allows: family allowances, life and health insurance from a Thai insurer, Thai Social Security, Thai ESG and RMF funds, home loan interest, rooftop solar and donations. Expats can also plan when and how they bring money from abroad. Each item has a limit and conditions.
Can I deduct my international health insurance?
No. Only policies bought from an insurance company in Thailand are deductible, even if a foreign policy covers you in Thailand.
Do foreigners get the same deductions as Thai people?
A foreigner who is a Thai tax resident, with 180 days or more in Thailand in the year, generally gets the same allowances. Non-residents keep the personal allowance, but family allowances depend on where the family lived.
What is the deadline to reduce my 2026 tax?
Payments and investments must be made by 31 December 2026, and fund managers often close their 2026 subscriptions a few days earlier. The return itself is filed between January and early April 2027.
Is it legal to plan my taxes like this?
Yes. Using the deductions, exemptions and treaties provided by Thai law is lawful tax planning. What matters is meeting the conditions and keeping the evidence.
Official sources
- Revenue Department: personal income tax rates
- Revenue Department: list of personal income tax deductions (2025 update)
- Revenue Department: expense deductions on employment income
- Krungsri Asset Management: Thai ESG and Thai ESGX 2026 conditions
- Thai PBS: rooftop solar tax deduction up to THB 200,000 (March 2026)
- Revenue Department: guide to tax on income from abroad
- Revenue Department: double tax agreements in force
- BOI: Long Term Resident visa, tax benefits
Sources verified on 4 October 2026. This page explains general rules; it does not replace advice on your own facts.
Written and checked by the VB & Partners tax team in Bangkok, who prepare and file Thai returns for foreign residents every year. Meet the team →
