How Much is the Land and Building Tax?

Land and Building Tax

Land and Building Tax is a tax collected from owners or possessors of land and buildings, which replaced the former House and Land Tax and Local Development Tax. It came into effect on March 13, 2019, and collection began on January 1, 2020.

Types of Land and Building Tax

Land and Building Tax is divided into 4 main categories based on usage characteristics: agricultural land, residential land, commercial land, and vacant or unutilized land. Each category has different tax rates and collection conditions.

1. Agricultural Land Tax

Land or buildings used for agricultural purposes, such as rice farming, field cultivation, orchards, livestock farming, aquaculture, and other activities as prescribed by the Ministry of Finance. Divided into 2 subcategories:

1.1 Individual Owner Registered as a Farmer must pay Land and Building Tax as follows: Property Value and Tax Rate

Tax Rate by Agricultural Property Value

*Note: Individual owners will receive tax exemption for land valued up to 50 million baht, while juristic persons will not receive this exemption.

1.2 Juristic Person Owner which must be registered as a juristic person

Tax Rate by Land and Building Value

2. Residential Land Tax

Tax collected from land or buildings used as primary residences where the owner's name is registered in the house registration, such as detached houses, townhouses, condominiums, and residential units. Tax exemption applies to the first 50 million baht value, with excess amounts taxed at prescribed rates. Second properties onward are taxed at standard rates. Classification by section as follows:

2.1 Individual Owner of a Single Property (Section 3(2)(a))

Land and Building Value and Tax Rate

2.2 Individual Owner of Building Only Without Land (Section 3(2)(b))

Land and Building Value and Tax Rate

2.3 Individual Owner of 2 or More Properties (Section 3(2)(c))

Land and Building Value and Tax Rate

3. Commercial Land Tax

Land or buildings used for commercial, industrial, or other income-generating purposes, such as hotels, shops, office buildings, and factories. Higher tax rates apply compared to other usage types to encourage optimal land utilization.

Land and Building Value and Tax Rate

4. Vacant or Unutilized Land and Building Tax

Land not being utilized appropriately according to its condition, or left vacant and unutilized, will be taxed at the highest rate to encourage landowners to put their land to productive use.

Buildings not being utilized appropriately, left vacant and not generating benefits, are also subject to land tax.

Land and Building Value and Tax Rate

*Important Condition: If land is left vacant for more than 3 consecutive years, the tax rate will increase by 0.3% every 3 years, but the total must not exceed 3%.

However, land under preparation for utilization or under construction, including land or buildings where rights to utilize are restricted by law or are under court consideration, will be exempt and not classified as vacant land.

Who is Liable to Pay Land and Building Tax

Determination of who is liable to pay Land and Building Tax is based on ownership rights as specified in the land title deed or rights documents. Divided into 2 main groups:

Owner of Property Rights in land or buildings, including those who possess or utilize land or buildings that are privately owned.

Those who Possess or Utilize Land or Buildings that are state property, such as lessees of treasury land or those authorized to utilize state land.

When Does Land and Building Tax Payment Begin

Those holding land or buildings as of January 1 of any year are liable to pay tax for that year. Local administrative organizations will send tax assessment forms to taxpayers by February, and taxpayers must pay by April of each year. Late payment will incur a surcharge of 1% per month.

How to Calculate Land and Building Tax

Calculating Land and Building Tax involves 3 calculation formulas depending on the nature of the property held: vacant land, land with buildings, and condominium units. A progressive calculation method based on tax base value at each tier is used, with details as follows:

1. Calculating Tax for Land Without Buildings

Formula: Calculation for land without buildings = Land Value x Tax Rate = Tax Payable

2. Calculating Tax for Land and Buildings

Formula: Calculation for land and buildings = (Land Value + Building Value) x Tax Rate = Tax Payable

3. Calculating Tax for Condominium Units

Formula: Calculation for condominium units = Condominium Unit Value x Tax Rate = Tax Payable

Payment Locations

Municipality Pay at the Municipal Office
SAO (Subdistrict Administrative Organization) Pay at the Subdistrict Administrative Organization Office
Bangkok Pay at the District Office
Pattaya City Pay at Pattaya City Hall