Income Tax in Bhutan

Personal income tax for Bhutan (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.

Bhutan · tax year 2025 · changed 25 Jun 2026

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Key figures: Bhutan, 2025

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Income up to Nu 300,000

0% (tax-free)Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/personal-income-tax-pit/)

Income Nu 300,001 to 500,000

5%Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/personal-income-tax-pit/)

Income Nu 500,001 to 750,000

10%Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/personal-income-tax-pit/)

Income Nu 750,001 to 1,200,000

15%Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/personal-income-tax-pit/)

Income Nu 1,200,001 to 2,000,000

20%Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/personal-income-tax-pit/)

Income Nu 2,000,001 to 3,500,000

25%Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/personal-income-tax-pit/)

Income above Nu 3,500,000

30%Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/personal-income-tax-pit/)

Surcharge on high income (2025)

10% of net tax payable where gross annual income is Nu 1,000,000 or moreIncome Tax Act of the Kingdom of Bhutan 2001 (https://thebhutanese.bt/major-changes-in-bhutans-income-tax-from-2026-explained/)

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Personal Income Tax bands and rates (income year 2025)

Income up to Nu 300,000 — 0% (tax-free) percent (Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/personal-income-tax-pit/))
Income Nu 300,001 to 500,000 — 5% percent (Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/personal-income-tax-pit/))
Income Nu 500,001 to 750,000 — 10% percent (Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/personal-income-tax-pit/))
Income Nu 750,001 to 1,200,000 — 15% percent (Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/personal-income-tax-pit/))
Income Nu 1,200,001 to 2,000,000 — 20% percent (Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/personal-income-tax-pit/))
Income Nu 2,000,001 to 3,500,000 — 25% percent (Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/personal-income-tax-pit/))
Income above Nu 3,500,000 — 30% percent (Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/personal-income-tax-pit/))
Surcharge on high income (2025) — 10% of net tax payable where gross annual income is Nu 1,000,000 or more percent (Income Tax Act of the Kingdom of Bhutan 2001 (https://thebhutanese.bt/major-changes-in-bhutans-income-tax-from-2026-explained/))
PIT taxable income sources — Salary, rental income, dividends, interest, income from cash crops, and other personal income aggregated per the Act ((approx — confirm)) (Income Tax Act of the Kingdom of Bhutan 2001)
Deduction — Provident Fund / GIS (2025 regime) — Employee Provident Fund and Group Insurance Scheme contributions deductible from employment income (replaced by a 15% standard deduction (capped Nu 150,000) under the Income Tax Act 2025 from 2026) (Income Tax Act of the Kingdom of Bhutan 2001)
Deduction — education allowance — Children's education expenses deductible up to the per-child cap set in the Act ((approx — confirm cap amount)) (Income Tax Act of the Kingdom of Bhutan 2001)
Deduction — housing loan interest — Interest on a housing loan deductible against rental income per the Act ((approx — confirm)) (Income Tax Act of the Kingdom of Bhutan 2001)
Tax residence / liability — Taxation is primarily source-based; Bhutanese-source personal income is taxable regardless of citizenship ((approx — confirm residence definition)) (Income Tax Act of the Kingdom of Bhutan 2001)
PIT filing and payment deadline — By 31 March following the income year (income year 2025 filed by 31 March 2026) ((approx — confirm exact date in DRC notification)) (Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/notification-tax-filing-for-income-year-2025/))

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Personal Income Tax bands and rates (income year 2025)

Income up to Nu 300,000 — 0% (tax-free) percent (Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/personal-income-tax-pit/))

Income Nu 300,001 to 500,000 — 5% percent (Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/personal-income-tax-pit/))

Income Nu 500,001 to 750,000 — 10% percent (Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/personal-income-tax-pit/))

Income Nu 750,001 to 1,200,000 — 15% percent (Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/personal-income-tax-pit/))

Income Nu 1,200,001 to 2,000,000 — 20% percent (Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/personal-income-tax-pit/))

Income Nu 2,000,001 to 3,500,000 — 25% percent (Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/personal-income-tax-pit/))

Income above Nu 3,500,000 — 30% percent (Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/personal-income-tax-pit/))

Surcharge on high income (2025) — 10% of net tax payable where gross annual income is Nu 1,000,000 or more percent (Income Tax Act of the Kingdom of Bhutan 2001 (https://thebhutanese.bt/major-changes-in-bhutans-income-tax-from-2026-explained/))

PIT taxable income sources — Salary, rental income, dividends, interest, income from cash crops, and other personal income aggregated per the Act ((approx — confirm)) (Income Tax Act of the Kingdom of Bhutan 2001)

Deduction — Provident Fund / GIS (2025 regime) — Employee Provident Fund and Group Insurance Scheme contributions deductible from employment income (replaced by a 15% standard deduction (capped Nu 150,000) under the Income Tax Act 2025 from 2026) (Income Tax Act of the Kingdom of Bhutan 2001)

Deduction — education allowance — Children's education expenses deductible up to the per-child cap set in the Act ((approx — confirm cap amount)) (Income Tax Act of the Kingdom of Bhutan 2001)

Deduction — housing loan interest — Interest on a housing loan deductible against rental income per the Act ((approx — confirm)) (Income Tax Act of the Kingdom of Bhutan 2001)

Tax residence / liability — Taxation is primarily source-based; Bhutanese-source personal income is taxable regardless of citizenship ((approx — confirm residence definition)) (Income Tax Act of the Kingdom of Bhutan 2001)

PIT filing and payment deadline — By 31 March following the income year (income year 2025 filed by 31 March 2026) ((approx — confirm exact date in DRC notification)) (Income Tax Act of the Kingdom of Bhutan 2001 (https://www.drc.gov.bt/notification-tax-filing-for-income-year-2025/))