The Land and Building Tax Act of 2019 (พ.ร.บ.ภาษีที่ดินและสิ่งปลูกสร้าง พ.ศ. 2562) replaced Thailand’s old House and Land Tax with an annual ownership-based property tax. The new tax is structurally similar to property taxes in many Western countries — based on appraised value, tiered by use, paid annually to local authorities. It is also much lower than the regime it replaced.
For foreign property owners, the practical effect is modest — typically THB 2,000–10,000 per year for a Phuket condo. The mechanics matter for budgeting and for understanding why the old 12.5% figure sometimes still cited online is wrong.
This article covers the rates, exemptions, payment mechanics, and the difference between the old and new regimes.
What the Act replaced
Before 2020, Thailand had two property-related annual taxes:
House and Land Tax (ภาษีโรงเรือนและที่ดิน) — 12.5% of annual rental value (actual or imputed) for property used commercially or for rental. Did not apply to owner-occupied residential property.
Local Development Tax — small annual tax on land based on assessed value.
Both were abolished by the Land and Building Tax Act 2019, effective 1 January 2020. The Act consolidates and broadens property taxation while reducing rates substantially.
The 12.5% figure that still appears in some older online sources and brokerage materials does not apply to anything in 2026. Don’t budget against it.
The new structure — Land and Building Tax Act 2019
The 2019 Act creates a single annual property tax on the appraised value of land and buildings. Rates differ by:
- Type of use (residential, agricultural, commercial/industrial, vacant)
- Value of the property
- Owner’s status (primary residence with Tabien Baan vs second home/investment)
The Treasury Department maintains the appraised value database — the same one used for transfer fee and withholding tax calculations. Appraised values typically run 30–50% below market value.
Rates by use category
Residential — primary residence (owner-occupier with Tabien Baan)
For a Thai-citizen or qualifying-foreigner primary residence with the owner’s name on the Tabien Baan (house registration) of the property:
| Owns land + building | Owns building only (e.g. on leased land) |
|---|---|
| First THB 50M exempt | First THB 10M exempt |
| 0.03–0.10% on value above the exemption | 0.03–0.10% on value above |
For most foreign owners, this category does not apply because foreign owners typically don’t establish Tabien Baan registration on their condo unit (the yellow book is conceptually for residence registration, not just ownership). Thai-citizen primary-residence owners benefit from the substantial exemption.
Residential — second home / additional residence / rental property
This is the typical foreign-owner band. Most foreign-owned Phuket condos used as holiday homes or rentals fall here. No exemption — tax applies from the first baht.
| Appraised value | Rate |
|---|---|
| Up to THB 50M | 0.02% |
| THB 50M–75M | 0.03% |
| THB 75M–100M | 0.05% |
| THB 100M+ | 0.10% |
For a typical Phuket condo at THB 6M appraised value (sale price often higher; appraised typically 30–50% below sale): annual tax = 0.02% × 6,000,000 = THB 1,200 per year.
For a THB 10M appraised condo: 0.02% × 10M = THB 2,000 per year.
For a THB 30M villa appraised value: 0.02% × 30M = THB 6,000 per year.
The absolute amounts are small — a small-coffee-per-week level of tax. Budget THB 1,000–10,000 per year for most foreign-owner residential property.
Agricultural
Rates capped at 0.15%, with substantial first-baht exemptions for genuine agricultural land. Rarely relevant for foreign owners (foreigners can’t own agricultural land directly).
Commercial / industrial
Rates capped at 1.2%. Applies to property used for commercial activity — hotels, offices, factories, retail. Higher than residential. For foreign-owned properties operated as registered hotels (rare in residential foreign ownership), the commercial rate applies.
Vacant or unused
A penalty rate of 0.3% from the first baht, rising 0.3% every 3 years the property remains unused, to a 3% ceiling. Designed to discourage land-banking.
For foreign condo owners, “vacant” means the unit isn’t being actively used — even occasional personal use or rental keeps the property out of the vacant category. Verify with your Thai accountant if the property has been completely unused for a year.
The 2026 reset — first full-rate year
In 2020, 2021, 2022, and some subsequent years, Cabinet decrees granted partial reductions (typically 90% off) of the Land and Building Tax as a pandemic-era and post-pandemic stimulus. The reductions were granted year-by-year and not extended automatically.
As of early 2026, no Cabinet decree extending the reduction is in force. Multiple practitioners (Lex Bangkok, FRANK Legal & Tax, Dansiam) flag 2026 as the first “full-rate” year of the Act’s operation. This means the rates above apply at 100% — the small absolute amounts get a bit larger relative to the past few years’ invoices.
Verify locally before final figures: in some areas, additional reductions or exemptions may apply by local-authority discretion.
Payment mechanics
Notice and due date
Notices from the local administrative authority (municipal tessaban or sub-district Or Bor Tor) arrive in the first quarter of the year, typically January–March. Due date is April of the same year.
For a Phuket condo, the notice goes to the registered owner’s mailing address (which may be the property itself, the juristic person, or the owner’s recorded address). Foreign owners spending part of the year abroad sometimes miss the notice — the juristic person typically forwards or holds it.
How to pay
Payment options:
- In person at the local tessaban or Or Bor Tor office
- Via authorized banks (the notice specifies which banks accept payment for that locality)
- Online via local-authority payment systems (varies by area)
- Via the juristic person, if they offer the service for the building (some do, often for a small fee)
Bring or reference the tax notice. Payment is by cash, bank transfer, or cheque depending on the authority’s options.
Penalties for late payment
- Surcharge of 1% per month (capped) on unpaid balance
- After extended non-payment, the unpaid tax becomes a lien on the property
- After further extended non-payment (typically 3+ years), the local authority can initiate enforcement action
For most foreign owners, the small absolute amounts make compliance straightforward. The penalty regime is meaningful in principle but rarely triggers for residential property in practice.
What’s not the Land and Building Tax
Several other costs of property ownership in Thailand sometimes get confused with the L&B Tax:
Common Area Maintenance (CAM) — paid to the juristic person, not a tax. THB 50–80/sqm/month for standard projects, higher for branded.
Sinking fund contributions — capital reserve, not a tax. One-off at purchase plus occasional top-ups.
Utility bills — not taxes.
Land Office transfer fee, SBT/Stamp Duty, WHT — transaction taxes paid at the Land Office on transfer day, not annual.
Rental income tax — separate, on rental income. See Rental income tax for foreign property owners in Thailand.
The Land and Building Tax is the only annual government tax on property ownership.
Comparison — Thailand vs other jurisdictions
For foreign buyers comparing Thailand to other markets:
- Thailand: ~0.02% of appraised value annually for typical foreign-owned residential = effectively 0.01% of market value
- United States: 0.5%–2.5% of market value annually depending on state and locality
- United Kingdom: Council tax, varies; typically £1,000–3,000/year on a £500k property
- France: Taxe foncière + taxe d’habitation; ~1% of market value annually combined
- Spain: IBI annual tax ~0.4%–1.1% of cadastral value
- Singapore: 0%–32% on owner-occupied with substantial primary-residence exemption; 11%–36% on non-owner-occupied
Thailand’s annual property tax is dramatically lower than most Western jurisdictions. The trade-off is that Thailand collects more at the transaction level (transfer fee, SBT, WHT) and through rental income tax.
What this means for buyers in 2026
Three rules:
-
Budget THB 1,000–10,000 per year for most foreign-owner residential property. The L&B Tax is a small line item, not a major holding cost.
-
Confirm the notice arrives. Make sure the juristic person or your property manager forwards the annual notice. Don’t let it lapse and accumulate penalties.
-
Don’t budget against the old 12.5%. The pre-2019 House and Land Tax is abolished. Any source citing 12.5% as the current rate is wrong.
For broader tax context: Taxes and fees when buying property in Thailand — full 2026 breakdown. For rental income tax (the bigger annual tax for landlords): Rental income tax for foreign property owners in Thailand. For transaction taxes (the bigger one-time tax): Property transfer fees in Thailand — the 2% rule and the Thai-only stimulus and Withholding tax on property sale in Thailand — how the Land Office calculates it.