Land and Building Tax for 2025: Latest Updates for Property Owners to Know

Land and Building Tax 2025 is a local tax that property owners must pay annually. This tax applies to those who possess land, houses, buildings, or condos as of January 1st each year. In 2025, there are some changes in details and tax rates from the previous year that property holders should closely monitor.

What is Land Tax and Who Must Pay It?

The land and building tax is levied on the owners of land or buildings, including those who have the right to possess such properties. If multiple individuals co-own a property, they are collectively responsible for paying the tax based on their share of possession.

According to the Revenue Department, it is clearly stated that “taxpayers for land and building tax are the owners of the land or buildings, or those who possess or benefit from the land or buildings that are state property. This can be individuals or legal entities. Whoever owns or possesses land or buildings on January 1st of any year is liable for tax for that year.”

If the landowner and the owner of the building on that land are different individuals, the landowner pays tax only on the value of the land, while the building owner pays tax only on the value of the building.

We recommend keeping up with updates on tax laws for the clearest understanding.

Classification of Land Use

Taxes are determined based on the type of property use, which is divided into four categories:

Residential – such as single houses, townhomes, and condos used as primary or secondary residences.

Agricultural – such as land for gardening, farming, or livestock.

Others – commercial properties that generate income, such as office buildings, shops, or rental rooms.

Vacant land – land that is not utilized legally on a continuous basis.

Tax Rates for 2025

In 2025, tax rates depend on the property value and usage. For residential properties, if it is the first house and valued at no more than 50 million baht, it will be exempt from tax. If the value exceeds this, the tax will start at a minimum rate of approximately 0.02% and increase according to value.

Condos held as buildings only will be exempt if valued at no more than 10 million baht. For the second property and beyond, tax will start from a value of less than 50 million baht as well, but the tax rate will be higher than for the first property.

Properties used for commercial purposes will be taxed at a starting rate higher than residential properties, beginning at approximately 0.3%, and may increase if the value exceeds one hundred million baht.

Vacant land that is not utilized continuously will see tax rates increase every three years, with a maximum of 3% of the value.

In terms of tax payment, there may be differences between individuals and legal entities. It is advisable to check additional information according to announcements from the Ministry of Interior and relevant agencies for the most accurate and complete information.

How to Calculate the Tax Due

Tax calculation can be easily done using the formula:

Property Value × Tax Rate by Type

For example, if you have a residential house valued at 6 million baht (including land and building) and it is the only house, the tax rate is 0.02%, resulting in an annual tax of 1,200 baht.

In the case of commercial land valued at 20 million baht, the tax would be approximately 60,000 baht per year (at a rate of 0.3%).

Deadline for Filing and Paying Taxes

Local administrative organizations will send tax assessment letters by February each year. Taxpayers must pay by April 30, 2025, or according to any additional specified deadlines. If full payment cannot be made by the due date, installment payments may be requested (subject to local discretion).

For 2025, in some areas affected by disasters, such as flooding, the tax payment deadline may be extended to June or July.

What Happens If You Don’t Pay?

If taxes are not paid by the deadline, penalties and interest will be charged, with penalties ranging from 10% to 40% of the tax amount, plus an additional 1% interest per month. If neglected continuously, officials may take legal action or seize property to settle the tax.

Tax Deductions You Should Know

Some property owners may be eligible for tax deductions, such as:

• Single house valued at no more than 50 million baht (or condo no more than 10 million baht).
• Properties inherited before March 13, 2019, can receive a tax reduction of up to 90%.
• Properties under development, such as housing projects or condos not yet for sale, can receive a tax reduction of up to 90% within three years.
• Properties used for public benefit, such as schools, temples, or certain types of healthcare facilities, may be exempt.

Conclusion

Preparing for land tax in 2025 is not something to overlook, especially for homeowners, building owners, or landowners who may bear more responsibility than expected. Check your properties clearly to see which category they fall into and plan to pay taxes on time to avoid future penalty issues.

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