Country tax profile · 2026
Bhutan income tax
How Bhutan taxes income
Bhutan taxes personal income at rates up to 30%. Under the new 2025 law residents are taxed on their income; historically personal income tax applied to Bhutanese source income.
Compiled by MyNomadWorld for Bhutan and currently being re-verified against primary sources. Confirm with a local adviser before relying on it.
Bhutan income tax brackets (2026)
| Taxable income | Rate |
|---|---|
| up to 300,000 BTN | 0% |
| up to 500,000 BTN | 5% |
| up to 750,000 BTN | 10% |
| up to 1,200,000 BTN | 15% |
| up to 2,000,000 BTN | 20% |
| up to 3,500,000 BTN | 25% |
| over the top bracket | 30% |
National brackets; local or regional surcharges may apply on top.
How Bhutan's income tax compares
Bhutan's top income tax of 30% is the 89th highest of the 197 countries we track, against a global average of 27.9% and a Asia average of 23.4%.
Countries with a similar income tax
Benin (30%) · Burundi (30%) · Chad (30%) · Djibouti (30%) · Eritrea (30%) · Jamaica (30%)
Who is a tax resident of Bhutan?
Resident if present in Bhutan 183+ days or domiciled there (Income Tax Act 2025, residential status, s.226); Bhutanese citizens/residents/others with gross income above Nu 300,000 from the taxable sources are liable to PIT.
Related Bhutan taxes
Moving to Bhutan?
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What is the income tax rate in Bhutan?
Bhutan taxes personal income at rates up to 30%. Under the new 2025 law residents are taxed on their income; historically personal income tax applied to Bhutanese source income.