According to current regulations, property leasing activities – including leasing houses, premises, shops, factories, warehouses (excluding accommodation services) – when reaching the tax threshold, individuals will have to pay personal income tax (PIT) and value-added tax (VAT).
In 2025, individuals leasing assets with revenue below 100 million VND/year are not required to pay tax. However, from 2026, according to new regulations in the amended PIT Law and VAT Law, the tax threshold is raised to 500 million VND/year. Accordingly, individuals with revenue from leasing assets from 500 million VND or less will not be required to pay tax; if it exceeds 500 million VND/year, they must pay PIT and VAT.
For employees working at enterprises, income from salaries and wages is subject to annual PIT finalization. When finalizing, taxpayers are still fully entitled to family deductions for themselves and dependents according to regulations.
Notably, when finalizing salary and wage tax, other incomes are not added for general finalization.
Meanwhile, income from renting houses is classified into the group of income from property leasing - which is an independent type of income, not the same type as income from salaries, wages or income from business activities. This income is not annually finalized and is only taxable when rental revenue exceeds the threshold of 500 million VND/year.
Therefore, income from salaries, wages and income from renting houses are not combined to calculate taxes. These are two separate sources of income, managed and applying separate tax calculation methods.
According to Resolution 198/2025/QH15, the subject fee is officially abolished from January 1, 2026. Thus, individuals and households renting houses no longer have to pay subject fees as before.
From 2026, home lessees will only have to pay PIT and VAT when revenue exceeds the threshold of 500 million VND/year.
With PIT, the new regulation only calculates tax on the portion of revenue exceeding the threshold.
The calculation formula is as follows: PIT payable = (Yearly revenue – 500 million VND) × 5%
For VAT, the calculation method still applies as a ratio to total revenue: VAT payable = Total revenue × 5%
In case of leasing for less than 12 months, the revenue to determine tax obligations is based on the total actual revenue generated in the year.
The tax authority also noted that individuals and households leasing houses with revenue below 500 million VND/year, although not required to pay taxes, must still register a property lease tax code and carry out tax declarations according to regulations to ensure compliance with tax management obligations.
