Tax system in Thailand in a nutshell
Most individual taxes in Thailand fall under the jurisdiction of the Revenue Department of the Ministry of Finance. The main exceptions are customs duties (Customs Department) and excise tax (Excise Department).
For income tax, Thailand uses a self-assessment system. This means taxpayers like you and me must declare their earnings, calculate & file their tax returns, and pay the appropriate taxes to authorities. The government assumes all declared income and paid taxes are accurate. The tax year follows the calendar year.
Additionally, there are various consumption and other taxes collected during transactions or events that don’t qualify for tax credits.
Thailand has established double-tax treaties with 61 countries to prevent double taxation. This means expats who pay taxes overseas can use those payments to reduce their Thai income tax liability.
Five different categories of all taxes in Thailand for individuals
There are several ways to categorise individual taxes (e.g. direct vs indirect), but in this article, we will look at the taxes from the perspective of what they are imposed on. In Thailand, these are:
- Taxes on what you earn (Income taxes)
- Taxes on what you buy (Consumption taxes)
- Taxes on what you own
- Other miscellaneous taxes
- Unofficial/indirect taxes
1. Taxes on what you earn
Personal income tax
If you work in Thailand, you will pay personal income tax. It is a direct tax imposed on the income of individual taxpayers.
You don’t necessarily pay tax on all of your income, however. Taxable income (income that you pay tax on) is calculated as your total assessable income (all income that qualifies for taxation) minus allowances & deductions. Depending on your situation & type of income, your allowances & deductions may vary.
Thailand uses progressive tax rates instead of a flat rate. The first 150,000 THB you make is tax-free, and then the rates vary from 5% up to 35%.
Withholding tax
Rather than collecting tax in one annual payment, the Thai government collects it incrementally throughout the year. Your employer withholds a percentage of your monthly income and remits it to the government, which is then credited toward your final tax obligation.
Withholding tax applies to most income types (employment, royalties, dividends, etc.), with rates varying by category—typically between 3% and 15%.
If the withholding amount is calculated correctly (either by you or your HR department), it will match your final tax bill exactly. However, if there’s a discrepancy, you’ll either need to pay the difference or receive a tax refund.
Social Security Fund (SSF) contributions
While not a conventional tax, contributions to the Social Security Fund are mandatory and can be deducted from your final tax bill. The monthly contribution is 5% of your salary, with a cap of 750 THB per month (9,000 THB annually). Both your employer and the government match this contribution with equal amounts.
Capital gains tax
Thailand has no dedicated capital gains tax. Instead, most capital gains are treated as ordinary employment income for tax purposes. However, certain gains are tax-exempt, including those from selling shares on the Stock Exchange of Thailand or mutual fund units.
2. Taxes on what you buy
Value-added tax (VAT)
Value-added tax (VAT) is an indirect tax on the sale of most goods and services. It’s currently 7% in Thailand, though the government has considered raising it back to its original 10% rate. While resident individuals typically cannot claim VAT refunds, there are exceptions—such as during special government tax schemes or when earning business income.
Customs duty & import tax
When importing things to Thailand, you are often faced with import tax and customs duty. The import tax is standard 7%, while the duty rate depends on the product category and can range anywhere from 0% to 35% of the cost of the product.
Customs duty has a threshold of 1,500 THB, meaning it is only triggered for items with a value larger than that, however import tax now applies to all good regardless of their value. Just note that the declared value of an item includes both the price of the product, shipping costs and insurance.
Not all product categories trigger customs duty, however. Examples of exempted categories are books, mobile devices or cameras. On the other hand, the most heavily taxed are dry food & supplements (35%) and clothes and accessories (30%). Ouch!
Thailand offers reduced duties for goods from countries with free trade agreements.
Excise tax
Excise tax is a consumption tax on mainly luxury goods, such as petroleum products, tobacco, liquor, beer, soft drinks, crystal glasses, perfume and cosmetic products, air-conditioners and passenger cars with ten seats or fewer.
Even though you won’t be charged directly (unless you are a business), you will feel it in everyday life. The cost of imported alcohol, certain products and cars is considerably higher in Thailand than in many developed countries worldwide.
Specific business tax
Specific business tax is typically imposed on businesses not subject to VAT, but in a few instances, it also applies to individuals – specifically when selling immovable property (3.3%).
3. Taxes on things you own
Property tax
Homeowners in Thailand will be familiar with property tax consisting of two sub-taxes: house & land tax and local development tax. Both are collected annually.
The house & land tax amounts to 12.5% of the annual letting value of the property, which can be a house, building or land that’s rented and not occupied by the owner.
Local development tax is imposed on someone who owns land. This tax rate depends on the estimated land value and necessitates an appraisal. Those who use the land for living or, for example, for raising stock can get an allowance on the said tax.
If you buy a condo or other property in Thailand, it will trigger an additional tax – transfer fee of 2%, specific business tax at 3.3% and stamp duty at 0.5%.
Net wealth/worth taxes
Luckily there are no net wealth/worth taxes in Thailand.
Inheritance & gift tax
Thailand has an inheritance tax that’s triggered when the value of the inherited estate or legacy is greater than 100M THB. Its rate depends on your circumstances.
Spouses are entirely exempt from the tax, while descendants are taxed at 5%. In all other cases, the inheritance tax rate is 10%.
Inheritance tax is subject to the following properties: immovable property, securities according to the law, bank deposit accounts or other money of a similar nature that the testators have the right to call back or claim from financial institutions or persons who hold such money, registered vehicles, and financial assets to be prescribed in royal decrees.
4. Other miscellaneous taxes
Stamp duties
Stamp duty is a tax that the government places on legal documents, usually in the transfer of assets or property. In Thailand, it’s levied on 28 documents, each taxed at a different rate (ranging between 1 and 200 THB).
The documents liable to stamp duty include transfers of land, a lease, stock transfers, debentures, mortgages, life assurance policies, annuities, power of attorney, promissory notes, letters of credit, and travellers’ cheques.
5. Indirect or unofficial taxes
While the above taxes are quite common and relatively well known to most, Thailand also collects money in various lesser-known and often not very popular ways. The chances are you have been charged most of the below taxes during your stay in Thailand.
Arrival or “tourist” tax
Thailand has been considering imposing a tourist tax on international arrivals since 2021. The government has not yet settled on the final amount, though it may be either 300 THB or 500 THB.
Departure tax
Leaving Thailand by air or even flying domestically comes with a hidden extra cost, the so-called departure tax. When leaving on an international flight, the tax is 750 THB, while domestic departures are taxed at 130 THB. This fee is included in your airfare.
Dual pricing
While not an official tax, double or dual pricing in Thailand functions similarly—especially for expats. Throughout the country, many places maintain two distinct price tiers: one for locals and another for foreigners. Common examples include:
- Temples
- National parks (including islands, hiking trails, and waterfalls)
- Tourist attractions (such as the Snake Farm in Bangkok, water parks)
This practice particularly frustrates expats since foreign prices can be up to 10 times higher than Thai prices, regardless of one’s residency status.
Important: National parks no longer accept cash payments. Remember to bring alternative payment methods when visiting parks, islands, or waterfalls.
If you are passionate about this topic, you can follow #2PriceThailand on Twitter or learn more on this website.
Conclusion
That was a brief overview of all taxes in Thailand you will encounter as an individual. Taxes in Thailand are here to stay, and if anything, the country will keep raising their rates (like VAT) or introduce new ones, such as the controversial arrival tax.
And while you won’t be able to avoid most of them as an expat living in Thailand, you can learn to manage and optimise for some of the most impactful ones. Especially personal income tax on your employment, investment income, or customs duty when buying products from abroad.
