Excited to have family deduction level increased

The cost of living and prices of many essential goods are constantly increasing.

Add expenses

According to Resolution 110/2025/UBTVQH15 approved by the National Assembly Standing Committee, the family deduction will increase from VND 11 million to VND 15.5 million/month for taxpayers and from VND 4.4 million to VND 6.2 million/month for each dependent. The policy takes effect from the 2026 tax period, representing an increase of about 40.9% compared to the current level.

This information was received with excitement by workers in big cities like Hai Phong . Ms. Nguyen Thi Thao, working at a state-owned enterprise in Le Chan ward, has an income of nearly 17 million VND/month.

With the new deduction of 15.5 million VND/month, after deducting compulsory insurance of 10.5% (social insurance 8%, health insurance 1.5%, unemployment insurance 1%), therefore, with an income of 17 million VND/month, Ms. Thao will not have to pay tax.

“In the context of the cost of living, housing prices, tuition fees and many other essential expenses continuously increasing, adjusting the family deduction level is very timely and close to the reality of life. Raising the taxable income level also helps workers have more monthly expenses. This more or less helps reduce the financial pressure on my family,” Ms. Thao shared.

The increase in the deduction is expected to significantly reduce the number of low-income taxpayers.

Ms. Le Thi Thuy Dung, working at a company in Hai Duong ward, has an income of about 25 million VND/month. She has just completed the procedures for her 2 children as dependents. Thus, from 2026, with this income level, Ms. Dung will be deducted 15.5 million VND for herself and 12.4 million VND for 2 dependents, a total of 27.9 million VND. After deducting additional compulsory insurance of 10.5% (equivalent to 2.625 million VND), Ms. Dung does not have to pay personal income tax.

“This policy is very popular. The cost of taking care of two children is increasing, just the tuition, extra classes and boarding costs are nearly 12 million VND per month. With the new family deduction, I will not have to pay personal income tax and will have an extra amount for other monthly expenses. I really hope the policy will come into effect soon,” said Ms. Dung.

Under current regulations, many middle-income earners still have to pay taxes despite high actual expenses. Raising the deduction is expected to significantly reduce the number of low-income earners, while increasing family spending power, contributing to boosting consumption in the economy.

Suitable for reality

According to the Ministry of Finance's proposal, the increase in family deductions is calculated based on the growth rate of average income per capita and GDP per capita. By the end of 2025, the consumer price index (CPI) had fluctuated by more than 20% compared to the most recent adjustment in 2020 (21.24%), ensuring the legal basis for the adjustment.

Adjusting the deduction level also takes into account the average spending per capita in a certain period. Data from the General Statistics Office shows that the fluctuation of average income and average GDP from 2020 to present is about 40% - 42%. Therefore, the family deduction level is adjusted in accordance with the reality of life and income of workers.

Area for handling procedures and support on tax, finance... at Nguyen Giap Commune People's Committee.

It is expected that increasing the family deduction level will reduce the state budget by about 21 trillion VND/year, but the benefits to workers' lives and the effect of encouraging consumption are highly appreciated.

According to Mr. Vu Doan Ngoc Hung, Deputy Head of Hai Phong City Tax, increasing the family deduction level not only brings immediate benefits but also has long-term impacts on workers and the economy. This will help workers reduce their tax burden, especially for middle-income groups and dependents, helping them retain more income for daily living. The new deduction level closely reflects the actual standard of living, avoiding taxes that are too high compared to the ability to pay.

"People retaining more income will increase their spending power, support businesses and boost the economy. In particular, increasing the family deduction level reduces the tax burden for workers participating in the tax system, while encouraging formal workers, creating a stable source of revenue for the State budget in the long term," Mr. Hung added.

Mr. Nguyen Duy Binh, Deputy Director of the Bank for Investment and Development of Vietnam (BIDV) - Thanh Dong branch, in Le Thanh Nghi ward, said that the adjustment of the family deduction level from 2026 is considered timely, humane and suitable for real life. "Workers are excited because the tax burden will be reduced, spending capacity will increase, and at the same time, the policy will ensure fairness and support economic development," Mr. Binh commented.

However, for the above adjustment to be truly meaningful, it is necessary to effectively control the consumer price index; control inflation, stabilize prices; and link tax adjustments with wage reform and social security policies...

THE ANH

Source: https://baohaiphong.vn/phan-khoi-khi-duoc-nang-muc-giam-tru-gia-canh-528696.html