Rental Property Tax Calculator 2026
VAT + PIT for rental income — Tax-free threshold 500 million VND (Law 149/2025)
Rev./year
500.000.004
Total tax
25.000.000
Keep/month
39.500.000
VAT and PIT for rental income are calculated differently
This is the most important point when calculating rental property tax from 2026:
- VAT 5%: calculated on TOTAL rental revenue (when exceeding 500M)
- PIT 5%: calculated only on the EXCESS above 500 million
Example: rental revenue 800 million/year:
- VAT = 800,000,000 × 5% = 40,000,000
- PIT = (800,000,000 - 500,000,000) × 5% = 15,000,000
- Total tax = 40M + 15M = 55,000,000
- Net income = 800M - 55M - 1M (license fee) = 744,000,000
Old vs New Regulations
| Before 2026 | From 2026 | |
|---|---|---|
| Tax-free threshold | 100 million | 500 million |
| VAT when exceeded | 5% on total revenue | 5% on total revenue |
| PIT when exceeded | 5% on total revenue | 5% on excess above 500M |
| Legal basis | Circular 40/2021 | Law 149/2025/QH15 |
Frequently Asked Questions
Below what rental income is tax-free?
From 01/01/2026, rental property revenue ≤ 500 million VND/year is exempt from both VAT and PIT (Law 149/2025/QH15). The old threshold was 100 million.
How are VAT and PIT for rentals calculated differently?
This is the most important point: VAT 5% is on TOTAL revenue, but PIT 5% is ONLY on the EXCESS above 500 million. Example: revenue 600M: VAT = 600M × 5% = 30M, PIT = (600M - 500M) × 5% = 5M.
How is the 500 million threshold calculated for multiple properties?
The 500 million threshold is based on TOTAL rental revenue from ALL properties, not per property. Example: 2 properties, each rented at 300M/year → total 600M → exceeds threshold.
What is the business license fee for property rental?
Revenue > 500M: 1 million/year. 300-500M: 500,000 VND. 100-300M: 300,000 VND. ≤ 100M: exempt.
How do old and new rental tax rules compare?
Before 2026 (Circular 40/2021): threshold 100M, both VAT and PIT on total revenue. From 2026 (Law 149/2025): threshold 500M, VAT on total but PIT only on excess → more favorable for landlords.
How is tax calculated for partial-year rentals?
Revenue is calculated based on actual months: monthly rent × number of months rented. Example: 50M/month × 8 months = 400M → below 500M threshold → tax-exempt.
Is this tool accurate?
This tool is based on Law 149/2025/QH15 effective 01/01/2026. Results are for reference. For complex cases, please consult your tax authority.