Thailand Land and Building Tax: Who Pays, How It Is Calculated, and How to Pay
1. Who is the taxpayer (Section 9)
The taxpayer is the owner or occupier of the land or building on 1 January of each year; regardless of whether the property changes hands during the year, that year’s tax is borne by the rights-holder as of 1 JanuarySection 9. If the taxpayer is a juristic person, the representative of the juristic person is responsible for payment; where the taxpayer has died, is absent, is a minor / lacks capacity, or is under liquidation, the tax is paid on their behalf by the estate administrator / heir, the property administrator, the legal representative / guardian / curator, or the liquidator, respectivelySection 47. Where the land and the building on it belong to different owners, each is a taxpayer for the part they ownSection 48.
2. Exemptions and reductions (Sections 8 and 40)
Section 8 of the Act lists 12 categories of property exempt from tax, for example: property of the State or a state agency used in public service and not to generate benefit; the headquarters of the United Nations and its specialized agencies and of foreign embassies and consulates; property of the Thai Red Cross Society; religious property used exclusively for religious practice; public cemeteries; property of foundations and public charity organizations as announced by the Minister of Finance; and common property maintained for the shared use and benefit of all co-owners under the law on condominium buildingsSection 8.
In addition, where a natural person uses land for agriculture within the area of a local administrative organization, the value of the tax base is entitled to an exemption combined in the calculation, which the law fixes at not more than 50 million baht, calculated in accordance with the joint announcement of the Minister of Finance and the Minister of InteriorSection 40. For the first three years the Act is in force, there is a further transitional tax exemption for land used by natural persons for agricultureSection 96. Where economic and social necessity so requires, tax may also be reduced by royal decree, and the reduction may be up to 90% of the amount of tax payableSection 55.
3. Tax rates: statutory ceilings and actual application (Sections 37 and 43)
Section 37 sets ceiling rates by use — the rate actually collected is set separately by royal decree and may not exceed these ceilings. The ceilings in the statute are as follows:
- Agricultural use: not exceeding 0.15% of the tax baseSection 37.
- Residential use: not exceeding 0.3% of the tax baseSection 37.
- Other use (including commercial): not exceeding 1.2% of the tax baseSection 37.
- Left vacant or not put to proper use in accordance with its nature: not exceeding 1.2% of the tax baseSection 37.
Surcharge on vacant property: where land or a building is left vacant or not put to proper use for 3 consecutive years, in the 4th year the rate under Section 37(4) is increased by 0.3%; thereafter, for every further 3 years it remains vacant, another 0.3% is added, but the combined rate does not exceed 3%Section 43. Please note: the percentages above are all statutory ceilings; the rate and bracket you actually pay are governed by that year’s royal decree and must be worked out case by caseSection 37.
4. Annual assessment and payment (Sections 44 and 46)
Land and building tax does not require self-assessment: the local administrative organization assesses it each year and delivers a notice of assessment, and the taxpayer pays according to the notice.
Assessment notice February
Each year, within February, the local administrative organization sends the taxpayer a notice of assessment and tax assessment form, stating at least the description of the land/building, the assessed capital value, the tax rate, and the amount of tax payableSection 44.
Pay the tax April
The taxpayer must pay the tax in full within April each year in accordance with the notice of assessmentSection 46; those who qualify may apply to pay by installments (the number of installments and the minimum threshold follow the ministerial regulation)Section 52.
Consequences of late payment Penalty + surcharge
Late payment gives rise to a penalty and a surchargeSections 68 and 70; while the tax remains in arrears, the transfer registration of the relevant immovable property also cannot be carried outSection 59.
5. Penalty and surcharge for late payment (Sections 68, 69 and 70)
- Penalty: for late payment, the penalty is 40% of the tax in arrears; if paid before the warning notice is received, the penalty is reduced to 10%Section 68; if paid within the period specified in the warning notice, the penalty is 20%Section 69.
- Surcharge: charged at 1% per month of the tax in arrears (a fraction of a month counts as one month); where an extension is approved and payment is made within it, this is reduced to 0.5% per month; the surcharge is counted from the expiry of the payment deadline, does not exceed the amount of tax payable, is not compounded, and does not include the penaltySection 70.
- Installment default: a taxpayer granted installments who fails to pay on time forfeits the right to installments and pays an additional charge of 1% per month on the tax in arrearsSection 52.
For prolonged arrears, the local administrative organization may, 90 days after the warning notice is served, seize, attach and sell the property at public auction to satisfy the debtSection 62; and while the tax remains unpaid, registration of the transfer of ownership or possession rights in that land/building may not be carried outSection 59.
6. Property-tax matters SLF can assist with
The firm offers assistance with property tax (land and building tax) assessment and payment: checking whether the local administrative organization’s notice of assessment is accurate, determining the use classification and any exemptions/reductions available, sending reminders and handling filings on the “February assessment — April payment” timetable, and helping to communicate when late payment or a dispute arises. The specific rates, brackets and exemption thresholds are governed by that year’s royal decree and local ordinances, and we will verify them for you case by case.
The percentages listed in this article are all statutory ceilings from the text of the Land and Building Tax Act; the rates, brackets and exemption thresholds actually collected are set by royal decree and local ordinances, are usually lower than the ceilings, and may be adjusted from year to year — the actual figures are as officially prescribed, and we can help you confirm themSection 37.
FAQ
Who has to pay land and building tax?
The owner or occupier of the land/building on 1 January of each year is the taxpayer for that year; even if the property is sold during the year, that year’s tax is still borne by the rights-holder as of 1 January. Where the taxpayer is a juristic person, its representative pays, and where the land and the building on it belong to different owners, each is a separate taxpayer (Sections 9, 47, 48).
What are the tax rates and how are they calculated?
The law sets only ceiling rates: agricultural use not exceeding 0.15% of the tax base, residential not exceeding 0.3%, and other use and vacant property not exceeding 1.2%. The rate actually collected is set separately by royal decree and may not exceed these ceilings; it is usually lower and may be adjusted year to year, so it must be worked out case by case under that year’s rules (Section 37).
When is it due, and what happens if it is late?
The local administrative organization sends a notice of assessment within February, and the taxpayer must pay in full within April. Late payment carries a penalty of 40% of the tax in arrears (reduced to 10% if paid before the warning notice, or 20% if paid within the period stated in the warning notice), plus a surcharge of 1% per month. Prolonged arrears can lead to seizure and public auction, and transfer registration of the property cannot be carried out while the tax remains unpaid (Sections 44, 46, 59, 62, 68, 69, 70).
What exemptions or reductions are available?
Section 8 lists 12 categories of exempt property, such as state land used for public service, embassy and consulate premises, religious property, public cemeteries, and condominium common property. Land used by a natural person for agriculture also has a tax-base exemption of not more than 50 million baht, and a royal decree may further reduce tax by up to 90% of the amount payable (Sections 8, 40, 55).