There is one dependent, the deduction amount is up to more than 307 million VND/year
The Government issued Decree No. 253/2026/ND-CP detailing a number of articles and measures to organize the implementation of the Personal Income Tax Law No. 109/2025/QH15.
One of the notable points of the decree is the addition of a deduction for medical expenses, education - training of taxpayers and dependents.
According to new regulations, the family circumstance deduction for the taxpayer himself is 15.5 million VND/month, equivalent to 186 million VND/year. The deduction for each dependent is 6.2 million VND/month, equivalent to 74.4 million VND/year.
In addition, taxpayers are entitled to a maximum medical expense reduction of 23 million VND/year for medical examination and treatment costs at domestic medical facilities covered by health insurance.
For education and training, the maximum deduction is 24 million VND/year, applied to tuition fees from preschool to university, vocational education and professional skills training.
However, medical and educational expenses are only deductible if they have not been paid, supported or paid on behalf by the State budget, social insurance, health insurance, enterprises or other organizations and individuals.
According to calculations, for a dependent, the total deduction may be up to 307.4 million VND/year, equivalent to about 25.63 million VND/month. After applying the progressive tax schedule in installments, employees with an income of about 28.63 million VND/month will begin to incur personal income tax obligations.
Workers expect policies to reduce financial pressure
Ms. Nguyen Thi Ha (35 years old, office worker in Hanoi) believes that allowing deduction of medical and educational expenses before calculating personal income tax is suitable for the reality of many young families in large cities.
According to Ms. Ha, the current income level seems high, but after deducting rent, tuition fees and living expenses, many families still face great financial pressure.
Meanwhile, Mr. Nguyen Thanh Tung (36 years old, information technology staff in Hanoi) said that his family has two young children, so the pressure to spend is very high even though the income is not low.
Each month, my family loses about 10 million VND just for tuition, semi-boarding, English classes and arising expenses for my two children. Not to mention rent, living expenses, electricity and water, travel expenses. There are months when my child is sick and has to go to the hospital or check-ups outside of hours, the cost increases a lot" - Mr. Tung said.
Mr. Tung believes that the maximum deduction of 24 million VND/year for education costs is still quite low. Divided into about 2 million VND per month, while currently many families have tuition fees for one child higher than that level. He proposes a flexible mechanism according to the number of children or by living area to be more practical.
Assessing the new policy, Assoc. Prof. Dr. Le Xuan Truong - Head of the Department of Taxation - Customs (Academy of Finance) - said that the addition of additional income items eligible for personal income tax exemption shows that Vietnam's policy is now closer to international standards. From there, it meets the requirements of human resource development and improves the quality of life of people, contributing to ensuring the principle of fairness in income regulation.
He analyzed that when workers retain more income, they will have conditions to increase spending and accumulate. Increased disposable income will promote domestic consumption, create more motivation for production and business, and sustainably nurture budget revenue sources.
