Taipei: Taiwan’s individual income tax exemptions and standard tax deductions are set to increase in 2026, aligning with the tax season in May 2027, the Ministry of Finance (MOF) announced on Thursday. In a proposal approved by the Cabinet, the MOF highlighted the need for adjustments to accommodate changes in the cost of living.

According to Focus Taiwan, the MOF has outlined that individual income tax exemptions will be elevated by NT$4,000 to NT$101,000 (US$3,221) for most taxpayers and to NT$151,500 for those aged 70 and above. Additionally, the standard tax deduction for single filers will increase by NT$5,000 to NT$136,000, while for married joint filers, it will rise by NT$10,000 to NT$272,000.

The ministry further indicated that the special deduction for wage and salary earners and persons with disabilities will see an increase from the current NT$218,000 to NT$227,000. This adjustment aims to provide more financial relief to these groups.

For single individuals who are renters, combined tax exemptions and deductions will rise by NT$18,000 to NT$644,000 in 2026. This means that if their income is below this threshold, they will not be liable to pay income tax. The components of this figure include the standard exemption, standard deduction, special deduction for salary income, and special deduction for housing rent.

For a dual-income couple renting an apartment, combined deductions and exemptions imply that they will not incur taxes on income below NT$1.108 million. A family of four, with two children aged 6 or below, renting an apartment, will be exempt from taxes on income below NT$1.685 million, according to the MOF.