How much income is taxable in 2025? This is a question many people want to know regarding personal income tax. Whether you are a salaried employee, freelancer, or self-employed, understanding your own tax bracket is essential. Knowing at what income level tax starts and how the rates are calculated helps with better financial planning.
Personal income tax is the money individuals are legally required to pay to the government. Paying taxes is a duty of Thai citizens because our income contributes to the nation’s overall revenue, which funds public services such as education, healthcare, and public utilities.
If your net income per year is less than 150,000 baht, you are exempt from tax.
But if your net income exceeds 150,000 baht, you will begin paying tax according to the progressive rates.
The higher your income, the higher the tax rate you must pay according to the brackets.
Note: Net income = Total income − Expenses − Tax allowances.
Many people confuse which types of income are taxable and how to file accordingly, especially income under Section 40, which is divided into several categories. Among the popular ones are 40(1) and 40(2), which relate to most workers today. Here is a simple summary:
Income 40(1) refers to earnings from regular employment or income received as a"employee"or"permanent staff member"paid regularly by an employer. For example, those earning salaries from a company or organization fall under 40(1). Examples include:
Income 40(2) refers to income from freelance work or jobs requiring specific skills, typically not as a regular employee, often called"freelance income"or"service income."If you take occasional jobs without a regular employer, this income is usually categorized as 40(2). Examples include:
"progressive tax brackets,"meaning the higher your net income, the higher the tax rate applied.If you want to know how much income is taxableand at what percentage,you can check the personal income tax rates by bracket as follows:Monthly Salary (baht)Annual Income (baht)
Net Income (baht) | Tax Rate | Tax Payable (baht/year) | 15,000 | 180,000 |
| 30,000 | Exempt | - | 20,000 | 240,000 |
| 80,000 | Exempt | - | 30,000 | 360,000 |
| 200,000 | 5% | 2,500 | 40,000 | 480,000 |
| 320,000 | 10% | 9,500 | 50,000 | 600,000 |
| 440,000 | 10% | 21,500 | 60,000 | 720,000 |
| 560,000 | 15% | 36,600 | 70,000 | 840,000 |
| 680,000 | 15% | 54,500 | 80,000 | 960,000 |
| 800,000 | 20% | 75,000 | 90,000 | 1,080,000 |
| 920,000 | 20% | 99,000 | 100,000 | 1,200,000 |
| 1,040,000 | 25% | 125,000 | Knowing | how much income is taxable in 2025 |
helps us plan finances more accurately. Preparing complete records of income and expenses, and understanding available tax deductions, can legally reduce tax burdens. With a proper understanding of the tax system, everyone can manage their taxes more easily.