Taiwan to raise tax exemption, deduction thresholds for 2026

Taipei, Nov. 27 (CNA) Taiwan's individual income tax exemptions and standard tax deductions are to be raised in 2026, in time for the tax season in May 2027, the Ministry of Finance (MOF) announced on Thursday.

In a proposal approved by the Cabinet Thursday, the MOF said the adjustments were needed to reflect changes in the cost of living.

As a result, the ministry said, individual income tax exemptions will be raised by NT$4,000 to NT$101,000 (US$3,221) for most taxpayers, and to NT$151,500 for those aged 70 and above.

In addition, the standard tax deduction for single filers will be raised by NT$5,000 to NT$136,000, while that of married joint filers will be raised by NT$10,000 to NT$272,000, according to the ministry.

The special deduction for wage and salary earners and persons with disabilities, meanwhile, will be increased from the current NT$218,000 to NT$227,000.

Combined tax exemptions and deductions

According to the MOF, the combined tax exemptions and deductions available to a single person who is a renter in 2026 will rise by NT$18,000 to NT$644,000. That means if their income is below that level in 2026, they will not have to pay income tax.

That figure is comprised of the standard exemption, standard deduction, special deduction for salary income, and special deduction for housing rent.

For a dual-income couple renting an apartment, combined deductions and exemptions mean that they will not have to pay taxes on income below NT$1.108 million.

A family of four renting an apartment with two children aged 6 or below, meanwhile, will not have to pay taxes on income below NT$1.685 million, the MOF said.