TAIPEI (TVBS News) — Minister of Finance Chuang Tsui-yun (財政部長莊翠雲) announced on Tuesday (Aug. 20) that single renters with an annual income below NT$626,000 will be exempt from Individual Income Tax (總和所得稅) for the upcoming tax season. This initiative aims to alleviate the financial burden on lower-income individuals.
Families of four with young children renting a home will also benefit. Households earning less than NT$1.641 million annually won't also have to pay taxes.
Chuang emphasized that the government has been optimizing the income tax system in recent years, with a positive outcome. According to a 2021 report, around 47%, 3.05 million, were exempt from Individual Income Tax.
The minister stated that the government has also increased the special deduction for preschool children and introduced a new deduction for long-term care. Also, housing rent expenses have been reclassified as a special deduction, with the amount raised from NT$120,000 to NT$180,000.
In 2023, the Ministry of Finance (財政部, MOF) implemented the House Tax 2.0 (房屋稅2.0), which came into effect in July. Chuang highlighted that the revised tax rates aim to rationalize property tax burdens. The new policy reduces taxes for single-home owners while increasing them for multiple-property owners, and all local governments across Taiwan must enforce these changes.