Laos Personal Income Tax
Detailed personal income tax rates and rules for Laos in 2026.
Laos' personal income tax applies progressive monthly rates from 0% to 25%. Residents are taxed on worldwide income while non-residents are taxed on Lao-sourced income. The monthly exemption threshold is LAK 1.3 million.
| Income Range (LAK) | Tax Rate |
|---|---|
| ₭0 – ₭1.3M | 0% |
| ₭1.3M – ₭5.0M | 5% |
| ₭5.0M – ₭15.0M | 10% |
| ₭15.0M – ₭25.0M | 15% |
| ₭25.0M – ₭65.0M | 20% |
| ₭65.0M+ | 25% |
Filing Deadline
Monthly withholding by employers; annual returns by March 31
Residency Rule
An individual present in Laos for 183 days or more in a tax year is considered a resident. Residents are taxed on worldwide income.
Additional Notes
Laos is modernizing its tax system with assistance from international development organizations. Tax administration is being strengthened through digitalization efforts.
How Laos Income Tax compares
Laos’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%.
