Moving into a higher tax bracket does not mean all of your income is taxed at that rate. Thailand's personal income tax applies progressive rates in bands to net income after allowable expenses and eligible deductions.
How to estimate your tax step by step
- Add up your income for the year and classify each type under the relevant rules.
- Deduct expenses using the method permitted for each type of income.
- Subtract deductions for which you qualify and have complete supporting documents.
- Apply the progressive rates to your net income, then subtract tax paid in advance or withheld at source.
The Revenue Department publishes examples of personal income tax calculations and tax rates and an official schedule of tax rates. Use the rules for the relevant tax year when calculating. Do not buy insurance or funds solely to reduce a tax bill; also consider liquidity, risk, fees, and your financial goals.
Plan carefully and follow the rules
Distinguish between claiming deductions allowed by law and creating expenses just to qualify for a deduction. Check year-specific dates and limits, keep supporting records, and do not conceal income or use inaccurate documents. If you have several types of income or income from abroad, ask an accountant or tax adviser to review how it should be classified before filing.
Video scope: The linked video discusses general money management; it does not explain tax brackets or tax planning. This article relies on the Revenue Department sources linked above for its tax information.
The original video remains on this page as a reference link; it is not evidence supporting the tax claims in this article.