Personal allowance deductions in 2026
Personal deductions are amounts deducted from income before calculating personal income tax. From January 1, 2026, the new deductions for taxpayers and their dependents will increase significantly.
The concept of personal deductions as stipulated by law.
According to Clause 1, Article 9 of Circular 111/2013/TT-BTC and Clause 6, Article 25 of Circular 92/2015/TT-BTC, personal allowance is an amount deducted from taxable income before calculating personal income tax on income from salaries and wages of resident individuals.
Personal deductions include two groups:
Taxpayer's personal deduction
Taxpayer's dependent deduction
According to Clause 6, Article 25 of Circular 92/2015/TT-BTC, from the 2015 tax year onwards, personal deductions only apply to income from salaries and wages and no longer apply to income from business activities.
Personal allowance rates applicable from 2026:
From January 1st, 2026, the new personal allowance deductions will be applied as follows:
- The tax deduction for taxpayers is VND 15.5 million/month (VND 186 million/year);
- The deduction amount for each dependent is 6.2 million VND/month.
Accordingly, from January 1, 2026, the personal allowance will be increased to VND 15.5 million per month for taxpayers and VND 6.2 million per month for each dependent.
Number of dependents eligible for tax deduction:
According to point c, clause 1, Article 9 of Circular 111/2013/TT-BTC:
- Each dependent can only be claimed as a tax deduction once by one taxpayer in a tax year.
- In cases where multiple taxpayers share a dependent they are responsible for supporting, the taxpayers must reach an agreement among themselves to register the dependent as a dependent under one taxpayer's name.
Accordingly, to be eligible for the dependent deduction, taxpayers must register the dependent for the deduction as prescribed. If multiple taxpayers share a dependent, they can agree among themselves to register the dependent for the deduction under one taxpayer, without any maximum limit on the number of dependents.
Each dependent can only be claimed as a tax deduction once by one taxpayer, and it cannot be transferred to another taxpayer within a tax year. Taxpayers must wait until the end of the tax year before changing dependents.
Therefore, the law does not limit the number of dependents that a taxpayer can register. If the dependents meet the conditions stipulated in the regulations, they are all eligible for tax deductions.
