Thailand's personal income-tax base remains heavily concentrated among a relatively small number of earners, with only 5.14 million of 12.57 million people who filed returns for the 2024 tax year required to pay tax.

Budget Committee data, based on P.N.D. 90 and P.N.D. 91 returns filed in 2025, have put government revenue collection under fresh scrutiny as Thailand considers how to make its revenue structure more balanced and sustainable.

Most filers had no tax liability

Of the 12.57 million people who submitted personal income-tax returns, 7.43 million - or 59.1% - had no tax liability. Their net income fell within the 0-150,000 baht bracket, which is exempt from tax under Thai law.

Those who did pay tax represented 40.9% of all filers. The figures highlight how small the pool of actual personal income taxpayers is, both compared with total tax filers and the wider working-age population.

Total calculated personal income tax for the period was 278.18 billion baht. Tax refunds for overpayment came to 46.99 billion baht.

Higher earners carry much of the burden

The data show that the burden is particularly concentrated among people at the highest income levels.

Just 30,000 filers had net income above 5 million baht. That group represented only 0.2% of all filers, yet paid 71.52 billion baht in tax - 25.7% of all personal income tax collected.

When they are combined with filers earning net income between 2,000,001 and 5,000,000 baht, another 0.8% of filers, just 1% of people filing returns accounted for 50.1% of personal income-tax revenue.

The figures underline the challenge for the government: most people remain below the taxable threshold, while a small high-income group supplies a substantial share of revenue from personal income tax.

The government faces a broader fiscal challenge in expanding the number of taxpayers while managing the national budget and seeking a more sustainable revenue structure.

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3 August 2026

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Thailand’s tax‑base problem is laid bare in those numbers. The revenue structure is what it is because they leave the government no real alternative. Not only that, they show why high-volume Tourism is so vital for this country!

When 59% of filers owe zero baht and just 1% of earners carry half the personal‑income‑tax load, the state inevitably leans on indirect tax and high‑volume consumption to fund itself.

That’s exactly why high‑volume Tourism matters. Every arrival pays VAT, excise, airport charges, hotel tax, alcohol tax (all revenue that is separate to the formal tax system).

Also, tourists typically consume heavily, don’t claim refunds, and don’t require long‑term state services. In a consumption‑driven revenue model, they’re ideal contributors. VAT and excise are efficient, easy to collect, and hard to evade.

But, indirect taxes are also structurally regressive. Even with targeted transfers, poorer households still spend a higher share of income on taxed essentials. Assistance softens the impact but it doesn’t eliminate it.

So, Thailand has a narrow formal tax base, a large informal economy, and a revenue model built on consumption rather than income. And that is why Tourism is so important to Thailand. It doesn’t fix the tax imbalance, but it certainly cushions it. Without that, the reliance on indirect tax would fall even harder on locals!

Only 30.000 people in Thailand earn more than 5 million THB?? I believe there is some work to do for the tax offices. Send every one in Thailand a tax form for 5 yrs, on which they have to fill in their job their income, their assets, and their real place they live.

There will be a lot more people who suddenly have to pay taxes, as it is almost unbelievable that 60% earn too less to pay tax. 70 million people in Thailand and only 12 million fill in a tax form??? and of these 60% no tax?? That means that only less than 5 million people out of 70 million have to pay tax?? But everyone like to hold their hands up when there is a help scheme, but nobody helps to fund it. No wonder there is a big loan needed

Edited August 2Aug 2 by ikke1959

27 minutes ago, ikke1959 said:

Only 30.000 people in Thailand earn more than 5 million THB?? I believe there is some work to do for the tax offices. Send every one in Thailand a tax form for 5 yrs, on which they have to fill in their job their income, their assets, and their real place they live.

There will be a lot more people who suddenly have to pay taxes, as it is almost unbelievable that 60% earn too less to pay tax. 70 million people in Thailand and only 12 million fill in a tax form??? and of these 60% no tax?? That means that only less than 5 million people out of 70 million have to pay tax?? But everyone like to hold their hands up when there is a help scheme, but nobody helps to fund it. No wonder there is a big loan needed

15 to 64 age group (working age) there is 48.8 million.

Do there numbers include where companies take tax automatically from employees - presumably some do?

Do people paying tax in that way still complete tax forms as well?

Not to worry, Thais love digital payments so this problem should be resolved by 2030 or so. They also love surveillance cameras placed every 100m and to be governed hard by big daddy in Bangkok. Wait until the tax bill comes due.

23 minutes ago, topt said:

Do there numbers include where companies take tax automatically from employees - presumably some do?

Do people paying tax in that way still complete tax forms as well?

This is exactly where most of the tax comes from. Employees surely file tax returns (or company does for them) in order to get a tax refund in case of too much money has been withheld.

2 hours ago, ikke1959 said:

Only 30.000 people in Thailand earn more than 5 million THB??

These are mostly C-level employees where tax is mandatory withheld from their monthly salary. Generally, people at this position negotiate their remuneration net of tax so that the tax burden is beard by the company.

Besides, successful business owners have multiple (even legal) ways to mitigate their tax.

2 hours ago, Jim Waldron said:

But, indirect taxes are also structurally regressive. Even with targeted transfers, poorer households still spend a higher share of income on taxed essentials. Assistance softens the impact but it doesn’t eliminate it.

A solution: 0% tax on essentials, progressively increased to 20% on luxury spending.

Abolish active income (mainly salary/commission) tax on individuals as it's proven inefficient.

Tax passive/investment income (rentals, capital gains, dividends, interests, royalties, ...) at fair progressive rates.

Tax uninvested capital at very low rate while incentive riskier investments that benefit local economy.

1 hour ago, topt said:

Do there numbers include where companies take tax automatically from employees - presumably some do?

Do people paying tax in that way still complete tax forms as well?

Yeah employers would be taking taxes from the salaries and yes it us up to the indidual to lodge their tax forms.

Very similar to many others countries I assume.

Nothing surprising in any of this.

With some 60% or 70% of the population on No Visible Income or earning c400฿ a day 6 days a week if they're lucky and never filled out a form of ANY kind in their life let alone a tax return, you can't squeeze the system for much more than's there already.

Addressing the issues would involve at least 20 years of work: trained high-quality school teachers, population getting a decent education including work skills in a modern economy, enforcement of all laws across the board and huge crackdown on corruption at all levels ... Well, we can all dream.

Till the dream comes true, all Thai governments have no choice but to rely on indirect taxes for their revenue base.

20 minutes ago, mfd101 said:

Nothing surprising in any of this.

With some 60% or 70% of the population on No Visible Income or earning c400฿ a day 6 days a week if they're lucky and never filled out a form of ANY kind in their life let alone a tax return, you can't squeeze the system for much more than's there already.

Addressing the issues would involve at least 20 years of work: trained high-quality school teachers, population getting a decent education including work skills in a modern economy, enforcement of all laws across the board and huge crackdown on corruption at all levels ... Well, we can all dream.

Till the dream comes true, all Thai governments have no choice but to rely on indirect taxes for their revenue base.

Mo visible income indeed.but i am wondering if i am on the road wherr all the Mercedes xxx BMW and othet expensive cars come from.

12 minutes ago, ikke1959 said:

Mo visible income indeed.but i am wondering if i am on the road wherr all the Mercedes xxx BMW and othet expensive cars come from.

Well they don't come from Isaan or the deep south ...

This is where their consumption tax needs to be increased. Do away with income tax and increase the VAT slightly and those with the most to spend pay more than those with less. You can do cash work or business but somewhere in the chain they’ll buy something that will generate the tax!

Why is this surprising?

Every country in the world the Rich are getting richer, the Poor are getting poorer.

Edited August 3Aug 3 by SiSePuede419
Obviously

7 minutes ago, SiSePuede419 said:

Why is this surprising?

Every country in the world the Rich are getting richer, the Poor are getting poorer.

Makes sense, as once past having more than enough, then the extra is invested. Which makes more money, that's invested, and it simply grows almost on auto pilot.

Same opportunities are there for most everyone. Live with your choices.

10 minutes ago, SiSePuede419 said:

Every country in the world the Rich are getting richer, the Poor are getting poorer.

Indeed. Regardless of the political regime, the ones in charge do never draft rules (without loopholes or privileges) that could become a threat for their situation.

I'm amazed they needed to analyse data to realize this.

3 hours ago, topt said:

Do there numbers include where companies take tax automatically from employees - presumably some do?

Do people paying tax in that way still complete tax forms as well?

To my knowledge they only need to fill a tax return if the are eligible to pay tax — i.e., 60,000 baht personal deduction; 50% income deduction up to 100,000 baht; 150,000 baht level before income tax — you need an annual income of more than 310,000, 25,833 baht gross per month after social security deduction, baht before being eligible for paying income tax. Some, that might have been withheld too much in tax, however do file a tax return.

1 hour ago, KhunLA said:

Same opportunities are there for most everyone. Live with your choices.

Not if you grew up - as millions upon millions of Thais did and still do - in a family without literacy of even a basic kind, with a daily wage (now) of some 400฿ if you're actually in a paying job at all and basically eating what you can grow or steal for yourself. When my b/f's family arrive for the monthly lawnmowing the women wander round the garden picking edible leaves off the shrubs, to take back to the farm for cooking. Needless to say, we never have a shortage of volunteers to come to mow & rake up the cuttings, as we feed & water them throughout the day and pay them generously as well.

Income tax, anyone? You gotta be joking.

Edited August 3Aug 3 by mfd101

5 minutes ago, mfd101 said:

Not if you grew up - as millions upon millions of Thais did and still do - in a family without literacy of even a basic kind, with a daily wage (now) of some 400฿ if you're actually in a paying job at all and basically eating what you can grow or steal for yourself. When my b/f's family arrive for the monthly lawnmowing the women wander round the garden picking edible leaves off the shrubs, to take back to the farm for cooking. Needless to say, we never have a shortage of volunteers to come to mow & rake up the cuttings, as we feed & water them throughout the day and pay them generously as well.

Income tax, anyone? You gotta be joking.

My first Thai wife's family was dirt poor, rice farmers, but her siblings, 3, are doing just fine, motivated self starters. All it takes is desire.

3 minutes ago, KhunLA said:

My first Thai wife's family was dirt poor, rice farmers, but her siblings, 3, are doing just fine, motivated self starters. All it takes is desire.

Yes, and in my b/f's class at school - in the few months ever of his schooling - there was a boy whose parents could read & write & who encouraged him in his studies. He was very bright and he's now superintendant of a large public hospital here in Surin province. But for a million other boys ...

As for 'choices' they belong almost entirely only to the sons & daughters of the bourgeoisie and above.

Edited August 3Aug 3 by mfd101

4 minutes ago, mfd101 said:

Yes, and in my b/f's class at school - in the few months ever of his schooling - there was a boy whose parents could read & write & who encouraged him in his studies. He was very bright and he's now superintendant of a large public hospital here in Surin province. But for a million other boys ...

As for 'choices' they belong almost entirely only to the sons & daughters of the bourgeoisie and above.

Not 'my' experience, or observations of others.

11 minutes ago, KhunLA said:

All it takes is desire.

Thats cute, one of those pithy phrases that rolls off the tongue but with little substance or insight behind it.

If that was the case, that “All it takes is desire,” then Thailand would be more like South Korea, for example. But, its not. I don’t believe it is a case of individual effort or “desire” but more the frequent ineptitude of government at all levels and, or in coordination with, the 1%ers who work to keep the status quo.

I’m not saying it is impossible for a Thai to improve their station in life, obviously it happens, but let’s be honest - most will find it hard. Very hard, sadly. As would be the case for many countries with similar circumstances.

2 hours ago, Yumthai said:

Indeed. Regardless of the political regime, the ones in charge do never draft rules (without loopholes or privileges) that could become a threat for their situation.

I live in Thailand 20 yrs but the wages hardly go up, surely compared to other countries. Thailand keeps the people on the edge,an now the economy is going to suffer ad the people have no money to spend

15 minutes ago, ikke1959 said:

I live in Thailand 20 yrs but the wages hardly go up, surely compared to other countries. Thailand keeps the people on the edge,an now the economy is going to suffer ad the people have no money to spend

Apparently, real wage growth (factoring inflation) is stagnant since the global financial crisis in 2008. Combine that with ever expanding household debt and its no wonder it is so difficult for the average wage earner here.

Edited August 3Aug 3 by TimBKK