Official Letter No. 1296/CT-NVT dated March 4, 2026, issued by the Tax Department, providing guidance on personal income tax finalization for income from salaries and wages

A. Family circumstance deductions and PIT rate brackets for income from salaries and wages

1. Family circumstance deduction levels

From the 2026 tax period (effective January 1, 2026), the family circumstance deduction levels are adjusted in accordance with Resolution No. 110/2025/UBTVQH15 of the Standing Committee of the National Assembly, replacing the current provisions under Resolution No. 954/2020/UBTVQH14.

Accordingly, the new family circumstance deduction levels are as follows:

• Deduction for the taxpayer: VND 15.5 million/month (equivalent to VND 186 million/year).
• Deduction for each dependent: VND 6.2 million/month.

This adjustment takes effect from January 1, 2026 and applies to the 2026 tax period.

2. Progressive tax rate schedule

For the 2026 tax period, effective from January 1, 2026, under the Law on Personal Income Tax No. 109/2025/QH15, income from salaries and wages of resident individuals shall be subject to a partially progressive tax rate schedule consisting of five (05) tax brackets.