Land and building tax is an issue of interest to many property owners. This article describes the Thai tax as it was discussed for 2023 (B.E. 2566), covering basic principles, calculation and other points the original article said owners should know. The figures below are historical source content and should not be used as current tax advice without checking current law and local-authority guidance.
What is the land and building tax?
The land and building tax, often called the land tax, is collected from ownership of land and buildings. It replaced the house and land tax and the local development tax, and took effect in 2020.
Why the land tax was introduced
The tax was introduced to improve fairness and efficiency in the tax system, increase revenue for local administrative organizations and encourage appropriate use of land.
Earlier taxes were repealed
When the land and building tax came into effect, the house and building tax and local development tax were repealed. Taxpayers therefore needed to understand the new system.
Who is liable for the tax?
Liability may fall on an owner of land or a building, or on a person who occupies or uses land or buildings owned by the state, as described in the source.
Registered owners
An individual or legal entity whose name is registered as the owner of land or a building is liable under the law, according to the article.
Occupants of state property
A person who occupies or uses state-owned land or buildings may also have a tax obligation.
The date used to determine liability
The source says liability is determined by the situation on January 1 each year. If you own or occupy the land or building on January 1 of that year, the source says you are liable for that year’s tax.
Joint ownership
Where land or a building is jointly owned, the source says the co-owners share responsibility for the tax.
What counts as land and a building?
Understanding the terms “land” and “building” is necessary to understand how the tax applies.
Definition of land
Land means ground and may include areas such as mountains, rivers, streams, lakes and islands within the land boundary.
Definition of a building
A building includes a building, house, structure or other construction situated on land, as well as other permanent structures such as roads, bridges and facilities.
Condominiums
A condominium building or unit is also treated as a building. The owner of a condominium unit may therefore be liable for tax under the applicable law.
How the tax is calculated
The source presents the basic calculation as follows.
Tax base
Tax base = (assessed value − exemption value) × tax rate.
Assessed value
Assessed value is the value of land and buildings determined by the government. The source says it can be checked with the Department of Lands or the Treasury Department.
Rates depend on use
The tax rate differs depending on how the land and building are used.
Categories of property use
The source divides land and buildings into four main use categories, each with a different tax rate:
- Agriculture
- Residential
- Other uses, such as commercial or industrial
- Vacant or unused land
Agricultural use
This category covers land and buildings used for agriculture, such as rice farming, field crops, orchards or livestock.
Residential use
This category covers land and buildings used as a residence, such as a home or condominium.
Other uses and vacant land
This category covers property not used for agriculture or residence, including vacant or unused land.
Exemptions described by the source
The source says the law provides cases where a value may be exempted when calculating tax.
Agricultural exemption
For land and buildings used for agriculture, the source gives a maximum exemption value of THB 50 million per local administrative organization.
Residential exemption
For residential property, the exemption differs depending on whether the owner is listed in the house registration:
- Listed in the house registration: exemption value of THB 50 million.
- Not listed in the house registration: exemption value of THB 10 million.
Tax rates stated for 2023
The source says land and building tax rates vary by use. The following are its historical 2023 figures, not current rates.
Residential rates
- Value up to THB 50 million: 0.02%.
- Value above THB 50 million: 0.03%–0.10% on a progressive basis.
Agricultural, other-use and vacant-land rates
- Agriculture: starting at 0.01%.
- Other uses: starting at 0.3%.
Vacant-land rate increases
The source says the tax rate on vacant land increases by 0.3% every three years.
Tax reductions described by the source
The article says taxpayers should be aware of possible reductions.
Reductions provided by law
The law may provide tax reductions in certain circumstances, such as when land or a building is damaged by a disaster.
Reduction in 2023
The source states that tax was reduced by 15% for 2023 (B.E. 2566). This is a historical claim and does not establish a reduction for another year.
Tax payment
Taxpayers can pay within the period set by the relevant authority. The source notes that payment deadlines are sometimes extended.
Summary and points to remember
To manage land and building tax, the source suggests checking the following items.
Check your property information
Verify that your land and building information is accurate so that the tax can be calculated correctly.
Owning more than one home
If you own multiple homes, the tax calculation depends on the rules that apply to each property.
Agricultural land
If land is used for agriculture, review the relevant exemption conditions and tax rates.
Vacant land
If you own vacant land, consider how it will be used. The source advises planning its use to avoid a higher rate, but current classification and rates must be confirmed with the responsible authority.
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