Officially increase family deduction to 15.5 million/month, applied from tax period 2026

The family deduction for taxpayers is increased to 15.5 million VND/month and for each dependent is increased to 6.2 million VND/month. Calculated from the 2026 tax period.

Meeting scene - Photo: GIA HAN

On the morning of October 17, 100% of the members of the National Assembly Standing Committee present approved the resolution of the National Assembly Standing Committee on adjusting the family deduction level of personal income tax.

Details of new family deduction levels

According to the resolution, the National Assembly Standing Committee decided to adjust the family deduction level of personal income tax as follows:

The deduction for the taxpayer is 15.5 million VND/month (186 million VND/year). The deduction for each dependent is 6.2 million VND/month.

This Resolution takes effect from the date of signing and applies from the tax period of 2026 (March 2027).

Thus, from the current level of 11 million VND/month for taxpayers and 4.4 million VND/month for each dependent, it has increased by more than 40%, corresponding to 15.5 million VND and 6.2 million VND.

State budget is expected to decrease by about 21,000 billion VND/year

Previously, Deputy Minister of Finance Nguyen Duc Chi presented the Government's report on the draft resolution.

He said this increase follows the growth rate of per capita income and per capita GDP.

According to calculations, by the end of 2025, the consumer price index (CPI) has fluctuated by more than 20% compared to the time of the most recent adjustment of the family deduction level (2020) at 21.24%, thus ensuring the legal basis for adjusting the family deduction level.

Deputy Minister of Finance Nguyen Duc Chi - Photo: GIA HAN

Adjusting the family deduction level needs to be consistent with price fluctuations. In addition to the consumer price index (CPI), which reflects the general price fluctuations, there are other factors that also affect prices such as average income per capita, average GDP, average spending per capita in a certain period, etc.

According to the General Statistics Office, the fluctuation in per capita income and per capita GDP from 2020 to present is about 40-42%.

Therefore, based on the growth rate of average income per capita and GDP per capita in 2025 compared to 2020 mentioned above, the family deduction level may be adjusted.

The deduction for the taxpayer himself/herself increases from 11 million VND/month to about 15.5 million VND/month (an increase of about 40.9% compared to the current level).

The deduction for each dependent increases from VND 4.4 million/month to about VND 6.2 million/month (an increase of about 40.9% compared to the current level).

According to this plan, an individual taxpayer (if no dependents) has an income of 17 million VND/month, after deducting insurance premiums of 10.5% (8% social insurance + 1.5% health insurance + 1% unemployment insurance) is 1.785 million VND (17 million VND x 10.5%) + 15.5 million VND (deduction for the taxpayer himself) = 17.285 million VND.

Therefore, with an income of 17 million VND/month, this person still does not have to pay tax (Income exceeding 17,285 million VND/month will be subject to tax with a tax rate starting at 5%).

In case the individual taxpayer has 1 dependent with an income of 24 million VND/month, after deducting insurance premiums of 10.5% x 24 = 2.52 million VND + 15.5 million VND (deduction for the taxpayer himself) + 6.2 million VND (deduction for 1 dependent) = 24.22 million VND.

With an income of 24 million VND/month, this person still does not have to pay tax (income exceeding 24.22 million VND/month will be subject to tax with a tax rate starting at 5%).

In case the individual taxpayer has 2 dependents with an income of 31 million VND/month, after deducting insurance premiums of 10.5% x 31 = 3,255 million VND + 15,5 million VND (deduction for the taxpayer himself) + 12,4 million VND (deduction for 2 dependents (6,2 million VND x2)) = 31,155 million VND.

With an income of 31 million VND/month, this person still does not have to pay tax (income exceeding 31.155 million VND/month will be subject to tax with a tax rate starting at 5%).

Implementing this plan, the state budget is expected to decrease by about 21,000 billion VND/year compared to the revenue level and number of taxpayers according to current regulations.

During the review, Chairman of the Finance and Budget Committee Phan Van Mai said that the majority of opinions in the Standing Committee agreed with the direction of increasing the family deduction level and basically agreed with the family deduction level proposed by the Government.

However, some opinions say that the proposed family deduction level may be appropriate at the present time, but because it is only calculated based on the growth rate of the indicators in 2025 compared to 2020, it does not meet practical requirements.

It is recommended that the Government consider to have the necessary space, accordingly, it can consider the option of calculating the increase rate according to the growth rate of income or GDP per capita estimated to be implemented in 2025 or expected in 2026 and the following years compared to the implementation in 2020...

Tuoitre.vn

Source: https://baoquangninh.vn/chinh-thuc-nang-giam-tru-gia-canh-len-15-5-trieu-thang-ap-dung-tu-ky-tinh-thue-2026-3380469.html