Bhutan Personal Income Tax
Detailed personal income tax rates and rules for Bhutan in 2026.
Bhutan's personal income tax applies progressive rates from 0% to 25%. The first Nu 300,000 of annual income is exempt. The system is relatively simple with five brackets. Residents are taxed on income sourced in Bhutan.
| Income Range (BTN) | Tax Rate |
|---|---|
| BTN 0 – BTN 300K | 0% |
| BTN 300K – BTN 400K | 10% |
| BTN 400K – BTN 650K | 15% |
| BTN 650K – BTN 1.0M | 20% |
| BTN 1.0M+ | 25% |
Filing Deadline
March 31
Residency Rule
Individuals residing in Bhutan or present for more than 183 days are residents. The tax system primarily focuses on Bhutan-sourced income.
Additional Notes
Bhutan's small population and developing economy mean that the tax base is limited. Hydropower exports to India are a major source of government revenue alongside taxation.
How Bhutan Income Tax compares
Bhutan’s top personal income tax rate of 25% is the 118th highest of 203 countries TaxAtlas tracks, below the global average of 27.7% and Asia’s regional average of 22.2%.
