Bhutan Salary Calculator 2026
Free Bhutan salary calculator (2026): estimate take-home pay for employees and the self-employed. Educational, not tax advice.
by Simon Bodych
Methodology & sources
Methodology - Bhutan (Income Year 2026)
Educational model for income year 2026 (1 January to 31 December 2026) under the Income Tax Act of Bhutan 2025 - not a DRC withholding (TDS) table, not an assessment, not tax advice. Currency: Ngultrum (Nu, BTN).
Salaried employee
- Standard deduction: taxable salary income = gross employment income minus a standard deduction equal to the lower of 15% of total employment income or Nu 150,000. The Nu 150,000 cap is reached at gross Nu 1,000,000 per year. This single standard deduction replaces the former Provident Fund and Group Insurance Scheme deductions.
- Personal income tax 2026 on annual taxable income: 0% up to Nu 300,000; 5% on Nu 300,001 to 500,000; 10% on Nu 500,001 to 750,000; 15% on Nu 750,001 to 1,200,000; 20% on Nu 1,200,001 to 2,000,000; 25% on Nu 2,000,001 to 3,500,000; 30% above Nu 3,500,000. The Nu 300,000 exemption is the 0% band.
- Provident Fund (PF): private-sector employee 5% and employer 5% of basic salary, with no published cap or floor. The employee 5% is deducted from pay; the employer 5% is shown in the employer-cost view. The educational model uses gross as the basic-salary base. There is no other statutory social-security payroll tax in Bhutan.
- Income tax is national only - there is no regional or dzongkhag income tax, so there is no region selector.
- Net-to-gross uses a numerical search on annual cash after tax and PF, because the standard-deduction kink and progressive slabs make the closed-form inverse awkward.
- Out of scope: the Parenthood / Child Tax Credit (Nu 1,000 to Nu 10,000 by number of children), the education, self-education, home-loan interest, life-insurance and disability reliefs, the charitable-donation deduction, civil-service (11/15) and armed-forces (15/15) PF rates, and any separate basic-versus-allowance pay split.
Sources: DRC - Withholding Tax Rates for Employers (Annexure I, 2026), DRC - Personal Income Tax (PIT), DRC - Rules on the Income Tax Act of Bhutan 2025, MoICE Department of Labour - Notification on Employees Provident Fund.
Self-employed / sole proprietor
- From income year 2026 the former Business Income Tax (BIT) is merged into PIT, so a sole trader is taxed under the same progressive slabs on net business income: business profit = revenue minus allowable expenses (cost of goods, operating expenses, depreciation, interest on business loans).
- No standard deduction applies in this mode - the 15% or Nu 150,000 standard deduction is an employment-income feature only; actual expense deduction is used instead. The Nu 300,000 exemption (0% band) still applies.
- No Provident Fund is charged: the mandatory PF scheme applies to enterprise employees, while PF is voluntary for the self-employed.
- Out of scope: the personal reliefs and credits, VAT / GST registration, capital-gains treatment, and the fine detail of allowable business expenses in the Income Tax Act 2025 Rules.
DRC - Rules on the Income Tax Act of Bhutan 2025, DRC - Personal Income Tax (PIT), BBS - new Income Tax Bill 2025 (BIT merged into PIT).