Land and Building Owners Check Now! Update on Land and Building Tax for 2025: How Much Do You Have to Pay and How to File?

MAIN POINTS

• Land and Building Tax or “Land Tax” is an annual tax calculated based on the value of land and buildings, divided into 4 main categories: residential land tax, commercial land tax, agricultural land tax, and vacant land tax. Each category has its own conditions and tax rates.
• The tax rates vary according to the usage, ranging from 0.01% to 3% of the value of land and buildings.
  Those liable for land and building tax include the owners of land or buildings and those who occupy or benefit from land or buildings that are state property. Local administrative organizations are responsible for assessing and sending tax assessment forms to taxpayers by February each year, and taxes must be paid by April 30 of that year.

In our daily lives, we all have taxes to pay regularly, such as value-added tax and income tax. However, for those who own land, houses, condos, or other buildings, they also have to pay additional land and building taxes.

Many may still wonder how much land tax they need to pay or what tax rates need to be updated. This article from AP Thai will guide everyone to understand the details about land and building tax for 2025, including tax rates, calculations, and tax exemptions. Let’s take a look at what you need to know.

What is Land and Building Tax?

Land and Building Tax, commonly referred to as “Land Tax”, is an annual tax calculated based on the value of land and buildings. Local administrative organizations manage the collection of this tax, which has been in effect since March 13, 2019, and the first tax collection started on January 1, 2020.

How is Land and Building Tax Calculated?

Land or buildings that can be inhabited or utilized, such as houses, buildings, condos, and warehouses, are all subject to tax. The calculation is based on the value of the land and buildings, divided into 3 categories:

• Land: Using the assessed value of the land.
• Buildings: Using the assessed value of the buildings.
• Condominium units: Using the assessed value of the condominium units.

Local administrative organizations will announce the assessed value and tax rates collected each year, which will be the same as the assessed value from the Land Department.

What Types of Land and Building Tax Are There?

Land and building tax is divided into 4 types: residential land tax, commercial land tax, agricultural land tax, and vacant land tax. Each type is determined based on the usage of the land and buildings, with different conditions and tax rates. Let’s see what type your land and buildings fall into.

Type 1: Residential Land

Residential land is land or buildings used for habitation, such as land or buildings where the owner resides. There must be documentation proving ownership and a house registration, including other houses that the owner is named on the title deed but not on the house registration, which must also pay residential tax.

Residential land and buildings are divided into 3 forms: land owner with buildings, building owner only (e.g., condo, unit), and owner of land and buildings of more than 2 units. Each type has different tax rates.

1. Individual owners of a single land and building have the following tax rates:

2. Individual owners of a single building have the following tax rates:

3. Individual owners of 2 or more land or buildings have the following tax rates:

Type 2: Commercial Land

Commercial land is land and buildings used for income-generating purposes, such as offices, restaurants, hotels, etc. The tax rates are as follows:

Type 3: Agricultural Land

Agricultural land is used for various agricultural purposes as specified, such as farming, gardening, rice cultivation, livestock, or aquaculture, including forestry, salt farming, and economic insect farming, with the purpose of consumption, sale, or use on farms.

For agricultural land or other buildings used for agriculture, if it is a company, it must register for agricultural activities, and if it is an individual, they must register as a farmer.

1. Individuals have the following tax rates:

2. Legal Entities have the following tax rates:

Type 4: Vacant Land

For vacant land or abandoned buildings that are not utilized to their full potential, or land that can be used but is left vacant throughout the year, taxes must also be paid.

Vacant land is land that is not utilized or is abandoned, with the following tax rates:

Note: If vacant land is left unused for more than 3 consecutive years, the tax rate will increase by an additional 0.3% for every 3 years, with a maximum tax ceiling of no more than 3%.