Updated Personal Income Tax Calculation for 2026 Under the New Family Deduction Scheme

Date: 2026.01.28

On December 10, 2025, the National Assembly officially passed the amended Personal Income Tax (PIT) Law. One of the key issues receiving significant attention from both employees and businesses is the effective date of the new family circumstances deduction starting in 2026.

So, will the 2026 family circumstances deduction apply from January 1, 2026, or from July 1, 2026? What are the specific deduction amounts? The article below will clearly explain all official legal grounds in detail.

1. When does the amended Personal Income Tax (PIT) Law take effect?

– Date of adoption: December 10, 2025

– Effective date of the amended Personal Income Tax Law: July 1, 2026

However, not all provisions of the amended law take effect from July 1, 2026. With respect to the family circumstances deduction, the law provides specific transitional provisions governing its application.

2. New regulations on family circumstances deduction amounts in 2026 under the amended Personal Income Tax (PIT) Law

According to Article 10 of the amended Personal Income Tax Law, the family circumstances deduction amounts are revised to replace the current levels as follows:

🔹 Definition of family circumstances deduction

The family circumstances deduction is the amount deducted from taxable income before tax calculation, applicable to income from salaries and wages of resident individuals.

🔹 Family circumstances deduction amounts from 2026

a. For taxpayers: VND 15.5 million per month, equivalent to VND 186 million per year

b. For each dependent: VND 6.2 million per month

3. Principles for determining family circumstances deductions for dependents

According to the amended Personal Income Tax (PIT) Law:

– Each dependent may only be claimed once for family circumstances deduction by one taxpayer

– A dependent is a person whom the taxpayer has a legal obligation to support, including the following categories:

🔹 Eligible categories of dependents

– Minor children

– Children who have lost civil act capacity, persons with disabilities, or those who are unable to work

– Adult children who are currently studying at universities, colleges, vocational secondary schools, or vocational training institutions

– A spouse who is unable to work

– Parents who have reached retirement age or are unable to work

– Other individuals without means of support whom the taxpayer is directly responsible for supporting

4. Effective date of the new family circumstances deduction: January 1, 2026 or July 1, 2026?

🔎 Legal basis determining the effective date

According to Clause 2, Article 30 of the amended Personal Income Tax (PIT) Law and Article 1 of Resolution No. 110/2025/UBTVQH15, the National Assembly has adjusted the effective date for applying the new family circumstances deduction as follows:

The new family circumstances deduction shall be applied from January 1, 2026, and shall apply to the 2026 tax assessment period.

✅ Official conclusion

👉 The new family circumstances deduction does NOT wait until July 1, 2026, but instead:

– Applies from January 1, 2026

– Applies to the entire 2026 tax year

5. How are the 2026 family circumstances deduction amounts uniformly applied?

According to Resolution No. 110/2025/UBTVQH15, the personal income tax family circumstances deduction amounts are adjusted as follows:

– Taxpayer: VND 15.5 million per month (VND 186 million per year)

– Each dependent: VND 6.2 million per month

👉 These are the official deduction amounts applied from January 1, 2026, replacing the current family circumstances deduction levels.

6. List of 21 Personal Income Tax (PIT)–exempt income items effective from July 1, 2026

According to Article 4 of the amended Personal Income Tax Law, there are 21 categories of income exempt from Personal Income Tax, including (legal wording preserved):

– Income from the transfer, inheritance, or receipt of gifts of real estate between family members in accordance with regulations

– Income from the transfer of the only residential house or residential land in Vietnam

– Income derived from the value of land use rights allocated by the State

– Income from agricultural, forestry, and fishery production that has not undergone processing

– Income from the conversion of agricultural land

– Interest from Government bonds, bank deposit interest, and life insurance interest

– Income from remittances

– Wages for night work and overtime work

– Pensions paid from social insurance funds and pension funds

– Income from scholarships

– Income from insurance compensation and compensation for occupational accidents

– Income from charitable organizations and funds

– Income from foreign aid for humanitarian purposes

– Income of seafarers working for international shipping companies

– Income from offshore fishing activities

– Income from carbon credits and green bonds

– Income from scientific, technological, and innovation activities

– Income from copyright related to scientific missions

– Income of investors and experts in innovative startups

– Income of foreign experts participating in ODA programs and United Nations programs

– Post–corporate income tax income of private business owners and single-member limited liability company owners

7. Finalized tax rate for Personal Income Tax calculation from 2026

According to the amended Personal Income Tax (PIT) Law, from January 1, 2026, the progressive tax tariff by partial accumulation is streamlined to 5 tax brackets as follows:

👉 The 35% tax rate applies to individuals with taxable income exceeding VND 100 million per month (equivalent to VND 1.2 billion per year).

8. Conclusion

✅ The new family circumstances deduction is applied from January 1, 2026

✅ Deduction amounts:

– Taxpayer: VND 15.5 million per month

– Dependent: VND 6.2 million per month

✅ Applicable to the 2026 tax assessment period

✅ The Personal Income Tax tariff is streamlined to 5 brackets, with a maximum tax rate of 35%