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Thailand Tax Calculator (2026) — Add or Reverse Tax

Thailand charges a 7% VAT, a 20% corporate tax rate, and a 35% top personal income tax rate.

7%
VAT
20%
Corporate tax
35%
Top personal tax
23.58%
World avg. corporate

How to use this calculator:

  1. Purchase mode — add VAT to a pre-tax price, or reverse a tax-included total to find the pre-tax price and exact tax paid.
  2. Profit / salary modes — enter an amount to see the corporate tax owed or a ceiling estimate of personal tax at the top marginal rate.

Understanding Thailand's Tax System

Thailand levies VAT at a standard rate of 7%. Its statutory corporate income tax rate is 20%, below the 23.58% global average. The top personal income tax rate is 35%.

Statutory VAT is 10%, reduced to 7% by rolling decree.

Region

Asia

VAT rate

7%

vs. world average corporate rate

3.6 points below the 23.58% global average

Why Reverse Tax Calculation Matters

Receipts and invoices usually show only the tax-included total, so separating revenue from tax collected — for bookkeeping or cross-border comparisons — means working backward from that total. Dividing by (1 + rate) isn't the same as subtracting the rate, which is why selecting "Reverse" in the purchase-mode calculator above handles it exactly.

History & Context

Thailand's VAT law sets a 10% standard rate, but the government has used a temporary royal decree to hold the effective rate at 7% since the 1997 Asian Financial Crisis — nearly three decades of a 'temporary' reduced rate that gets extended roughly annually, most recently through September 2026.

Thailand's rolling VAT-reduction decree illustrates how a temporary crisis measure can become a de facto permanent policy — businesses and consumers have operated under the 'temporary' 7% rate for so long that reverting to the statutory 10% would itself be a major economic shock.

Business Use Case

A Thai business technically operates under a 10% VAT law but has only ever charged 7% in practice for its entire operating history if founded after 1997 — the gap between statutory and effective rate is a a Thailand-specific quirk that a business new to the market needs to understand isn't a permanent tax cut, just a rolling one.

Real-World Examples

VAT on a purchase

A ฿1,000.00 purchase in Thailand at 7%:

  • Tax: ฿1,000.00 × 7% = ฿70.00
  • Total: ฿1,070.00

Corporate tax on profit

฿1,000.00 in company profit in Thailand at 20%:

  • Tax: ฿1,000.00 × 20% = ฿200.00
  • After-tax profit: ฿800.00

Extracting VAT from a receipt total (reverse)

A receipt shows a ฿1,499.00 tax-included total in Thailand at 7%:

  • Pre-tax price: ฿1,499.00 ÷ (1 + 7%) = ฿1,400.93
  • VAT: ฿1,499.00฿1,400.93 = ฿98.07

Frequently Asked Questions — Thailand Taxes

What is the VAT rate in Thailand?
Thailand's standard VAT rate is 7%.
What is the corporate tax rate in Thailand?
Thailand's statutory corporate income tax rate is 20%, compared to the 23.58% global average.
What is the top personal income tax rate in Thailand?
Thailand's top marginal personal income tax rate is 35%.
How is tax calculated on a purchase in Thailand?
Multiply the price by the VAT rate. A ฿1,000.00 purchase at 7% adds ฿70.00 in tax, for a total of ฿1,070.00.
How do I reverse Thailand's VAT to find the price before tax?
Divide the total (tax-included) price by 1 plus the VAT rate as a decimal. Select "Reverse" in the purchase-mode calculator above to do this automatically for Thailand's 7% rate.

References & Sources

Methodology: headline VAT/GST and corporate rates are sourced from the OECD Corporate Income Tax Rates Database and Tax Foundation's global rate tables for 2026; figures reflect the national statutory rate and do not include sub-national, sector-specific, or temporary rate variations unless noted in the text above. Tax rates change through national budgets — always confirm current figures with a qualified local tax advisor before making business or relocation decisions.

Rates last verified for 2026. This tool is for estimation and educational purposes only and is not tax, legal, or accounting advice.

J

Jordan Hayes

Verified Author

Personal Finance Content Strategist

Jordan is a personal finance content strategist with 9+ years writing about mortgages, retirement, tax strategy, and budgeting. Every guide is cross-referenced with IRS publications, Federal Reserve data, and CFPB guidance to make complex calculations accessible. Editor at CalculatorApp.me.

Personal FinanceMortgage & Loan AnalysisTax StrategyRetirement PlanningTechnical Writing

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Tax-rate data, review & limitations

Jurisdiction: Thailand. Effective date: January 1, 2026. Reviewed by CalculatorApp.me editorial staff on July 26, 2026; next scheduled review: October 26, 2026.

Rates are reference estimates, not tax advice. Local rules, exemptions, filing status, and effective dates can change the amount due.

Primary sources

  • OECD Tax Database
  • Tax Foundation corporate-tax and VAT datasets
  • Applicable national revenue authority guidance