Taiwan Salary Calculator

Taiwan Salary Calculator

How to Use the Taiwan Salary Calculator

A Taiwan Salary Calculator is an online tool that helps employees and job seekers in Taiwan estimate their take-home pay (net salary) after mandatory deductions like labor insurance, health insurance, and income tax withholding.

This tool is especially useful for both Taiwanese workers and foreigners working in Taiwan to understand what portion of their gross salary will be deducted and how much they will actually receive in hand each month.

How It Works

Taiwan’s salary structure includes several mandatory deductions:

  1. Labor Insurance – Provides coverage for workplace injuries, unemployment, and pensions.
  2. Health Insurance – Covers Taiwan’s National Health Insurance (NHI) system.
  3. Income Tax – Based on Taiwan’s progressive tax rates, with basic allowances and deductions.

The calculator uses simplified assumptions to give an approximate net salary:

  • You input your gross monthly salary (before deductions).
  • You select the number of dependents (yourself + family members you support).
  • The tool estimates insurance deductions (around 8% by default, but adjustable).
  • It calculates the taxable income after deducting allowances and insurance.
  • Finally, it applies a simplified flat tax rate of 5% to give a quick estimate.

(Note: Actual tax rates in Taiwan are progressive, but this tool provides a convenient estimate for everyday use.)

Steps to Use

  1. Enter your gross salary in New Taiwan Dollars (NTD).
    Example: 50,000 NTD
  2. Enter the number of dependents you support.
    Example: If you support yourself and 1 child, enter 1.
  3. Check or adjust the insurance rate (default is 8%).
  4. Click “Calculate Net Salary”.
  5. The tool will display:
    • Gross Salary
    • Labor + Health Insurance deduction
    • Estimated Tax
    • Net Salary (take-home pay)

Example Calculation

  • Gross Salary: NTD 50,000
  • Dependents: 1
  • Insurance Rate: 8%

Calculation:

  • Insurance Deduction = 50,000 × 8% = NTD 4,000
  • Tax Allowance = (1 + 1) × 7,333 = NTD 14,666
  • Taxable Income = 50,000 - 4,000 - 14,666 = NTD 31,334
  • Tax = 31,334 × 5% = NTD 1,567
  • Net Salary = 50,000 - 4,000 - 1,567 = NTD 44,433

Your take-home pay is about NTD 44,433.

FAQ – Taiwan Salary Calculator

Q1: Is this calculator 100% accurate?
A: No. It provides an estimate. Taiwan’s tax system uses progressive rates (5% to 40%), and deductions vary based on specific cases. This calculator simplifies the math for quick reference.

Q2: What deductions are mandatory in Taiwan?
A: All full-time employees contribute to:

  • Labor Insurance (~7–10%, shared with employer)
  • Health Insurance (~5–6%, shared with employer)
  • Income Tax (withholding by employer, based on government tables).

Q3: Do foreigners working in Taiwan pay the same deductions?
A: Yes. Foreign employees also contribute to labor and health insurance and pay income tax under the same system.

Q4: What about annual bonus or overtime pay?
A: They are included in gross income and subject to the same deductions and taxes.

Q5: How does the dependent allowance affect tax?
A: More dependents = higher allowances = lower taxable income = lower tax.

Q6: Can this calculator be used for yearly salary?
A: Yes, but it’s designed for a monthly salary. To estimate yearly figures, multiply results by 12 (keeping in mind annual bonuses may be taxed differently).

Q7: Where can I check official Taiwan tax rates?
A: The Taiwan National Taxation Bureau publishes updated rates and allowance tables each year.