Taiwan Updates Tax Thresholds for Foreign Residents
Taiwan’s Ministry of Finance is adjusting its tax thresholds to help residents cope with rising living costs. These changes, which were finalized late last year, apply to income earned throughout 2026. For digital nomads and expats living in Taiwan, this means a higher portion of your earnings will be exempt from tax when you file in May 2027.
The government has increased several key figures that determine your final tax bill. The basic personal exemption is now NT$101,000, while the standard deduction for single taxpayers has risen to NT$136,000. If you are a salary earner, you can also claim a special deduction of NT$227,000.
Who is affected
Your tax liability depends entirely on how many days you spend in the country.
- Under 90 days: You are generally exempt from Taiwan taxes unless you are earning local income.
- 90 to 182 days: You are considered a non-resident. You’ll typically pay a flat withholding tax of 18% to 21% on income earned for services performed within Taiwan.
- 183 days or more: You are a tax resident. You are taxed on your worldwide income at progressive rates ranging from 5% to 40%, but you gain the full benefit of the new, higher deductions.
For single remote workers renting an apartment, these updates mean you can now earn up to NT$644,000 before owing a single cent in income tax. High-earning professionals making over NT$3 million annually may also qualify for a 50% tax exemption on salary exceeding that amount.
What to do next
If you plan to stay in Taiwan long-term, keep a careful log of your entry and exit dates. Crossing the 183-day threshold changes your tax status significantly. Residents must file their annual returns through the National Taxation Bureau portal between May 1 and May 31.
If you are working on a shorter stint, ensure your employer is handling the correct withholding amounts before you depart. Staying informed on nomad news helps you avoid surprises at the border.
Read our full Taiwan guide for the complete picture.
Frequently asked questions
How many days do I need to spend in Taiwan to become a tax resident?
What happens if I stay in Taiwan for less than 90 days?
What tax rate applies to non-residents in Taiwan?
How much can a single remote worker renting an apartment earn before paying income tax in Taiwan?
When do I file my Taiwan annual tax return?
What are the new tax deductions for foreign residents in Taiwan?
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