Does Thailand use progressive tax brackets?
AI Answer
Yes, Thailand uses a progressive income tax system where higher portions of income are taxed at higher rates. The top marginal rate is 35.0%. This means your effective (average) rate is always lower than the top bracket rate.
For example, income up to 150,000 THB is tax-exempt. From 150,001 THB to 300,000 THB, the rate is 5%. It steadily increases, with income between 1,000,001 THB and 2,000,000 THB taxed at 20%, and finally, income over 5,000,000 THB hits the 35% bracket.
So, if you earn 6,000,000 THB, only the portion above 5,000,000 THB is taxed at 35%, not your entire income. This keeps your overall tax burden manageable, especially for lower and middle incomes. Understanding these brackets is key when planning your finances for a move to Thailand.