Single renters earning below NT$644,000 exempt from income tax

TAIPEI (Taiwan News) — Under new tax relief measures introduced by the Ministry of Finance, single renters earning NT$644,000 (US$20,000) or less per year will be exempt from income tax.

The Cabinet is expected to approve the ministry’s latest tax-cut package on Thursday, which raises exemptions, deductions, and tax-bracket thresholds for 2026 to ease the tax burden in 2027. The adjustments are being made in line with the Consumer Price Index.

To reflect living costs, the basic exemption will rise to NT$101,000 per person, and to NT$151,500 for those aged 70 or older. The standard deduction will increase to NT$136,000 for single taxpayers and NT$272,000 for married couples, while special deductions for employment income and disability will be raised to NT$227,000.

Under the updated 2026 tax brackets, those earning more than NT$590,000 a year will see a tax reduction of NT$20,000. Taxpayers earning more than NT$1.33 million will save NT$50,000, those earning above NT$2.66 million will save NT$110,000, and those earning over NT$4.98 million will save NT$210,000.

In total, 6.96 million households are expected to benefit from these changes, which are estimated to generate NT$14.4 billion in tax savings.

With the revised thresholds, single salaried renters using their residence as their primary home will owe no income tax if their annual income is NT$644,000 or less. Dual-income renter households will be tax-exempt up to NT$1.108 million, while those with two children under six will pay no tax if their income is NT$1.685 million or below.

For three-generation renter households with one senior aged 70 or above eligible for disability or long-term care deductions and two children under six, tax liability will begin above NT$2.1835 million. If a proposal to raise the long-term care deduction from NT$120,000 to NT$180,000 passes, the exemption threshold would increase to NT$2.2435 million.