What is the first home tax? Can it be deducted?
Last updated: 2 Aug 2025
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What is a first-home tax deduction?
The first-home tax deduction is the use of interest from a first-home loan, excluding the principal, to reduce taxes based on the interest paid, up to a maximum of 100,000 baht per year, as stipulated by law.
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Things to Know Before Applying for a Home Tax Deduction
Before filing your first-home tax return, it's important to understand basic details, such as how much interest is deductible, whether a joint home loan is deductible, etc. Therefore, in this section, we'll explore some essential information about first-home tax deductions:
1. First-home tax deduction up to 100,000 baht
First-home tax deductions are available up to 100,000 baht, as stipulated by law. These deductions can be divided into two categories: the actual first-home tax deduction and the full first-home tax deduction. Details are as follows:
The first-home tax deduction is a tax deduction if the interest amount does not exceed 100,000 baht. For example: Paying 6,000 baht per month in interest on a home loan over a year equals 72,000 baht in interest, which does not exceed 100,000 baht. Therefore, the 72,000 baht can be deducted from your taxes.
Full first-home tax deduction: This is applicable if the interest amount exceeds 100,000 baht. For example, paying 10,000 baht per month in interest on a home loan over a year equals 120,000 baht, exceeding the maximum amount specified. Therefore, the full 120,000 baht can only be deducted from your taxes by 100,000 baht.
2. Joint home loan deductions are also available for first-home tax purposes.
Joint home loans are also eligible for first-home tax deductions, and both the borrower and the co-borrower can apply, provided they meet the same first-home tax deduction amount. For example, if the annual interest payment on a home loan is 120,000 baht, the borrower's tax deduction is equal to the borrower's. Co-borrowers must pay 5,000 baht in interest per month, totaling 60,000 baht in interest over the course of one year. However, the maximum first-home tax deduction is 100,000 baht. Therefore, each borrower and co-borrower are entitled to a tax deduction of 50,000 baht, and the total combined amount cannot exceed 100,000 baht, as stipulated by law.
3. Multiple homes can also be eligible for a first-home tax deduction.
Those with multiple homes can also qualify for a first-home tax deduction. The first home loan tax deduction is capped at 100,000 baht. For example, if the first home loan requires 5,000 baht in interest per month for one year, this would amount to 60,000 baht in interest. If the second home loan requires 10,000 baht in interest per month for one year, this would amount to 120,000 baht in interest. The combined interest on both homes would total 180,000 baht, but only 100,000 baht could be deducted from your tax, as stipulated by law.
4. Home Loan Interest Must Come From Legal Sources
For first home loan interest, it must come from legal sources, such as banks, cooperatives, life insurance companies, employer-sponsored welfare funds, or securities companies. This is because the Revenue Department requires that interest be borrowed from domestic businesses to ensure proper legal verification of the source and details.
___________________________________________
First Home Loan Tax Deduction Criteria
The Revenue Department has established the following tax deduction criteria for first-home loans under Section 47(1) (c) of the Revenue Code:
- Interest on loans borrowed from UK businesses must be borrowed from businesses in Thailand, including banks, cooperatives, life insurance companies, employers with regulations regarding employee welfare funds, and the Secondary Mortgage Corporation under the Secondary Mortgage Corporation Act.
- Loan collateral: This is a loan that requires a mortgage on a house, condominium, or house with land as collateral, with the mortgage term corresponding to the loan term.
- Loan interest must be in accordance with the loan agreement. This must be interest from a loan agreement for the purchase or lease of a house, condominium, or house with land.
- Owners of more than one residence can claim a first-home tax deduction. Owners of more than one residence can claim the tax deduction as usual, but the maximum deduction is 100,000 baht, subject to the conditions stipulated by law.
- Borrowers with co-borrowers can claim a first-home tax deduction. Borrowers with co-borrowers can apply for tax deductions, but the deduction amount must be shared equally. The maximum deduction is 100,000 baht, subject to the conditions stipulated by law.
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How to Calculate First Home Tax
The first home tax deduction varies for each individual. Therefore, this section will introduce how to calculate first home tax to determine the amount of the deduction for home interest.
First, before calculating first home tax, it is important to understand that the first home tax calculation method excludes the principal and only uses the interest portion. Furthermore, the first home tax deduction is limited to a maximum of 100,000 baht. For example:
Example 1
A pays a monthly mortgage installment of 15,000 baht, divided into 10,000 baht of principal and 5,000 baht of interest. This means that over the course of one year, A will pay a total of 60,000 baht in interest. This means that A can deduct the interest amount from his taxes by a total of 60,000 baht, as it does not exceed the maximum amount stipulated by law.
Example 2
B pays a monthly mortgage installment of 25,000 baht, divided into 15,000 baht of principal and 10,000 baht of interest. This means that over the course of one year, B will pay a total of 120,000 baht in interest. B can also deduct this amount from his taxes, but only 100,000 baht, as the interest he pays exceeds the maximum amount stipulated by law.
___________________________________________
Preparing for Home Purchase Tax Deductions
Regarding filing for first-home tax deductions, including land and building taxes, before filing It's important to prepare your home loan interest tax deduction documents to ensure a smooth tax filing process. Here's how to prepare before applying for the first home tax deduction:
1. Consider the eligible home type.
Eligible homes include all types of residences, including townhomes, detached houses, houses with land, and condominiums. They can be new or secondhand, and can be purchased with cash or installments. However, the purchase price must not exceed 3 million baht and the transfer of ownership must be registered within the specified timeframe.
2. Prepare important documents. There are four important documents to prepare for the tax deduction interest deduction:
- Real estate purchase certificate certifying the first home
- Certificate of payment for the property
- Copy of the real estate sales contract, land purchase contract, or T.D. 13, bearing the Garuda emblem
- Copy of the loan agreement (if borrowing from a financial institution)
3. Consider the benefits you will receive.
Borrowers must thoroughly research the benefits you will receive. The first-home purchase benefit is a 20% tax deduction on the first home's price, which can be averaged over five years. For example, if a borrower purchases a first home for 2,500,000 baht, they will receive a 20% tax deduction, equivalent to 500,000 baht. This averaged amount over five years equals a 100,000 baht annual tax deduction.
4. Filing Taxes
The first-home tax deduction process can be easily filed online. Simply submit the personal income tax form (Por. Ngor. Dor. 90). On page 5 (Tax Calculation), fill in the fields for the income paid for the purchase of real estate (income earner), the property value, and the first home payment amount as specified in the land purchase agreement (Tor. Dor. 13). The system will automatically calculate the amount. Alternatively, if the borrower submits a regular document, they can simply fill in the fields mentioned above.
For the first-home tax deduction, This is a tax deduction for first-home loan interest, excluding the principal, based on the interest paid. The deduction is capped at a maximum of 100,000 baht per year, subject to legal conditions. Therefore, anyone purchasing a first-home and applying for a first-home tax deduction should thoroughly study the various conditions, calculate home loan interest, and determine the tax deduction amount. This includes preparing all necessary documents and filing procedures to ensure accuracy and a smooth first-home tax deduction process.
___________________________________________
Source: K-Property
The first-home tax deduction is the use of interest from a first-home loan, excluding the principal, to reduce taxes based on the interest paid, up to a maximum of 100,000 baht per year, as stipulated by law.
___________________________________________
Things to Know Before Applying for a Home Tax Deduction
Before filing your first-home tax return, it's important to understand basic details, such as how much interest is deductible, whether a joint home loan is deductible, etc. Therefore, in this section, we'll explore some essential information about first-home tax deductions:
1. First-home tax deduction up to 100,000 baht
First-home tax deductions are available up to 100,000 baht, as stipulated by law. These deductions can be divided into two categories: the actual first-home tax deduction and the full first-home tax deduction. Details are as follows:
The first-home tax deduction is a tax deduction if the interest amount does not exceed 100,000 baht. For example: Paying 6,000 baht per month in interest on a home loan over a year equals 72,000 baht in interest, which does not exceed 100,000 baht. Therefore, the 72,000 baht can be deducted from your taxes.
Full first-home tax deduction: This is applicable if the interest amount exceeds 100,000 baht. For example, paying 10,000 baht per month in interest on a home loan over a year equals 120,000 baht, exceeding the maximum amount specified. Therefore, the full 120,000 baht can only be deducted from your taxes by 100,000 baht.
2. Joint home loan deductions are also available for first-home tax purposes.
Joint home loans are also eligible for first-home tax deductions, and both the borrower and the co-borrower can apply, provided they meet the same first-home tax deduction amount. For example, if the annual interest payment on a home loan is 120,000 baht, the borrower's tax deduction is equal to the borrower's. Co-borrowers must pay 5,000 baht in interest per month, totaling 60,000 baht in interest over the course of one year. However, the maximum first-home tax deduction is 100,000 baht. Therefore, each borrower and co-borrower are entitled to a tax deduction of 50,000 baht, and the total combined amount cannot exceed 100,000 baht, as stipulated by law.
3. Multiple homes can also be eligible for a first-home tax deduction.
Those with multiple homes can also qualify for a first-home tax deduction. The first home loan tax deduction is capped at 100,000 baht. For example, if the first home loan requires 5,000 baht in interest per month for one year, this would amount to 60,000 baht in interest. If the second home loan requires 10,000 baht in interest per month for one year, this would amount to 120,000 baht in interest. The combined interest on both homes would total 180,000 baht, but only 100,000 baht could be deducted from your tax, as stipulated by law.
4. Home Loan Interest Must Come From Legal Sources
For first home loan interest, it must come from legal sources, such as banks, cooperatives, life insurance companies, employer-sponsored welfare funds, or securities companies. This is because the Revenue Department requires that interest be borrowed from domestic businesses to ensure proper legal verification of the source and details.
___________________________________________
First Home Loan Tax Deduction Criteria
The Revenue Department has established the following tax deduction criteria for first-home loans under Section 47(1) (c) of the Revenue Code:
- Interest on loans borrowed from UK businesses must be borrowed from businesses in Thailand, including banks, cooperatives, life insurance companies, employers with regulations regarding employee welfare funds, and the Secondary Mortgage Corporation under the Secondary Mortgage Corporation Act.
- Loan collateral: This is a loan that requires a mortgage on a house, condominium, or house with land as collateral, with the mortgage term corresponding to the loan term.
- Loan interest must be in accordance with the loan agreement. This must be interest from a loan agreement for the purchase or lease of a house, condominium, or house with land.
- Owners of more than one residence can claim a first-home tax deduction. Owners of more than one residence can claim the tax deduction as usual, but the maximum deduction is 100,000 baht, subject to the conditions stipulated by law.
- Borrowers with co-borrowers can claim a first-home tax deduction. Borrowers with co-borrowers can apply for tax deductions, but the deduction amount must be shared equally. The maximum deduction is 100,000 baht, subject to the conditions stipulated by law.
___________________________________________
How to Calculate First Home Tax
The first home tax deduction varies for each individual. Therefore, this section will introduce how to calculate first home tax to determine the amount of the deduction for home interest.
First, before calculating first home tax, it is important to understand that the first home tax calculation method excludes the principal and only uses the interest portion. Furthermore, the first home tax deduction is limited to a maximum of 100,000 baht. For example:
Example 1
A pays a monthly mortgage installment of 15,000 baht, divided into 10,000 baht of principal and 5,000 baht of interest. This means that over the course of one year, A will pay a total of 60,000 baht in interest. This means that A can deduct the interest amount from his taxes by a total of 60,000 baht, as it does not exceed the maximum amount stipulated by law.
Example 2
B pays a monthly mortgage installment of 25,000 baht, divided into 15,000 baht of principal and 10,000 baht of interest. This means that over the course of one year, B will pay a total of 120,000 baht in interest. B can also deduct this amount from his taxes, but only 100,000 baht, as the interest he pays exceeds the maximum amount stipulated by law.
___________________________________________
Preparing for Home Purchase Tax Deductions
Regarding filing for first-home tax deductions, including land and building taxes, before filing It's important to prepare your home loan interest tax deduction documents to ensure a smooth tax filing process. Here's how to prepare before applying for the first home tax deduction:
1. Consider the eligible home type.
Eligible homes include all types of residences, including townhomes, detached houses, houses with land, and condominiums. They can be new or secondhand, and can be purchased with cash or installments. However, the purchase price must not exceed 3 million baht and the transfer of ownership must be registered within the specified timeframe.
2. Prepare important documents. There are four important documents to prepare for the tax deduction interest deduction:
- Real estate purchase certificate certifying the first home
- Certificate of payment for the property
- Copy of the real estate sales contract, land purchase contract, or T.D. 13, bearing the Garuda emblem
- Copy of the loan agreement (if borrowing from a financial institution)
3. Consider the benefits you will receive.
Borrowers must thoroughly research the benefits you will receive. The first-home purchase benefit is a 20% tax deduction on the first home's price, which can be averaged over five years. For example, if a borrower purchases a first home for 2,500,000 baht, they will receive a 20% tax deduction, equivalent to 500,000 baht. This averaged amount over five years equals a 100,000 baht annual tax deduction.
4. Filing Taxes
The first-home tax deduction process can be easily filed online. Simply submit the personal income tax form (Por. Ngor. Dor. 90). On page 5 (Tax Calculation), fill in the fields for the income paid for the purchase of real estate (income earner), the property value, and the first home payment amount as specified in the land purchase agreement (Tor. Dor. 13). The system will automatically calculate the amount. Alternatively, if the borrower submits a regular document, they can simply fill in the fields mentioned above.
For the first-home tax deduction, This is a tax deduction for first-home loan interest, excluding the principal, based on the interest paid. The deduction is capped at a maximum of 100,000 baht per year, subject to legal conditions. Therefore, anyone purchasing a first-home and applying for a first-home tax deduction should thoroughly study the various conditions, calculate home loan interest, and determine the tax deduction amount. This includes preparing all necessary documents and filing procedures to ensure accuracy and a smooth first-home tax deduction process.
___________________________________________
Source: K-Property
