Land and Building Tax in Thailand: What New Homeowners Pay

Your New House Is Finished, So Why Did a Land and Building Tax Bill Arrive

Many homeowners in Korat and Roi Et finish building their house, and a few months later a land and building tax bill arrives from the local tesaban or Or Bor Tor (local administrative organization, or SAO). Most are confused, since they just spent everything on construction. The truth is that every house with a house registration book (tabien baan) sitting on titled land automatically enters the land and building tax system, no matter what year it was finished. This is not a penalty, it is simply how Thai property tax works.

Once construction finishes and a new house registration number is issued, the local SAO records it through that registration. Staff then survey the property and add the structure to the assessment roll. This process usually takes several months to a year before the first tax bill goes out. So homeowners rarely receive a bill in the same year the house is completed.

Families who finish a weekend house in Khao Yai or Pak Chong run into this often. Nothing arrives in year one, then in year two an envelope from the SAO shows up, sometimes mailed to their Bangkok address instead. Some assume it is a penalty or a backdated charge. It is actually just the normal annual assessment cycle.

What Land and Building Tax Is Actually Calculated From, Not What You Paid to Build

The tax base is the government appraised value of the land and building, set by the Treasury Department, not what the homeowner actually paid a contractor or a market sale price. Many homeowners confuse the two and worry their tax bill will match their construction cost.

The Treasury Department’s appraised value is based mainly on land location and building type, not the materials or specifications used in an individual house. Homeowners can check their own appraised value through the Treasury Department’s online system or by asking the local Treasury office. That figure becomes the starting base for every year’s tax calculation.

A house in Korat built for approximately 3 million baht might have an appraised value of only approximately 1.5 to 2 million baht, since appraised values usually run below actual construction cost or market price. As a result, the tax actually owed is often far lower than homeowners fear.

How Much Exemption Does a Primary Residence Get from Land and Building Tax

The law exempts a primary residence from this tax, on the condition that the owner is a natural person, owns both the land and the house on the same title, and is listed in that house’s registration book as of January 1 of the tax year. If the appraised value is approximately 50 million baht or less, the exemption covers the full amount.

For the portion above 50 million baht, tax applies on a stepped scale. The portion up to 25 million baht is taxed at approximately 0.03 percent, the portion from 25 to 50 million baht at approximately 0.05 percent, and anything above 50 million baht at approximately 0.10 percent.

For most houses in Korat, Roi Et, and the wider Isan region, the appraised value never comes close to 50 million baht. In practice, nearly every primary residence in these areas is fully exempt from land and building tax. Owners who build a primary residence for a few million baht typically pay nothing at all, as long as their name is correctly listed in the house registration book.

How the Tax Rate Differs Between a Primary Residence and a Second Home

A second home, or any house where the owner is not listed in the house registration book, does not get the 50 million baht exemption a primary residence gets. Tax applies from the very first baht of the appraised value. This is the single biggest difference between the two categories.

The rate for a second home is also stepped. Value up to 50 million baht is taxed at approximately 0.02 percent, the 50 to 75 million baht range at approximately 0.03 percent, and the 75 to 100 million baht range at approximately 0.05 percent. These rates are lower than the top bracket for a primary residence’s excess value, but there is no starting exemption at all.

A Bangkok resident who buys a weekend house in Khao Yai or Pak Chong as a second home, with an appraised value of approximately 3 million baht, would owe approximately 600 baht a year at the 0.02 percent rate. A similarly valued primary residence in Korat would owe nothing, since it falls under the exemption. This gap means second-home owners need to budget for this tax every single year.

Payment Deadlines for Land and Building Tax, and Who Collects It

Land and building tax is collected by the local administrative organization where the property sits, the tesaban or Or Bor Tor covering Korat, Roi Et, Khao Yai, and Pak Chong, not the Revenue Department or any central agency. Homeowners deal directly with their local SAO.

Normally, tax is due within April each year, paid at the local SAO office using the assessment notice, form Por Dor Sor 6. For the 2026 tax year, however, the Ministry of Interior announced an extension of the collection period through September 2026, with payment allowed in three installments. Homeowners should confirm the exact deadline with their local SAO each year, since this can change.

Owners of a newly built house should check with the local SAO every year to confirm their structure has been added to the assessment roll. This matters most for weekend houses in Khao Yai, where the owner’s primary address is in Bangkok and a mailed notice can go astray. Not receiving a bill does not mean nothing is owed, so owners should follow up themselves.

Planning for This Tax from the Day You Decide to Build

Land and building tax is a long-term cost that should be part of a homeowner’s budget planning from the start, not an afterthought once construction is paid for. Even though the actual amount owed across most of Isan is low because primary residences are usually exempt, second-home owners need to set aside money for this every year.

The OBILIS team, who builds houses across Korat, Khao Yai, Pak Chong, and Roi Et, generally advises homeowners to have their land title deed (chanote) and house registration book ready as the house nears completion. That way, the primary-residence exemption can be filed with the local SAO as soon as the house registration is issued. Preparing these documents early avoids scrambling when the first tax bill arrives.

If you want a figure for the house you actually have in mind, try the budget planner first, or contact us for an estimate based on your real plan and land.

Understanding land and building tax from the outset means a homeowner is not caught off guard when the bill arrives a few months after handover, and can plan cash flow more accurately after construction. This especially applies to families who buy land and build a second home in Khao Yai or Pak Chong for weekend use. Foreigners generally cannot own land outright in Thailand, so a foreign buyer building a second home here typically owns the house structure while a Thai national or a leasehold arrangement holds the land, which affects who is legally responsible for this tax.

Related reading: Construction Loan on Your Own Land in Thailand: What Banks Check | House Registration Number After Construction in Thailand: How Many Days Does It Take | Land Title Deed Types in Thailand: Chanote, Nor Sor 3, and Nor Sor 4 Explained Before You Buy Land in Isaan

Frequently Asked Questions

Does a Newly Built House Owe Land and Building Tax Right Away

No, not in the year construction finishes. The local SAO needs time to survey and add a new structure to the property assessment roll first. Generally, a homeowner starts receiving tax bills the year after the house is completed and registered with a house registration book.

Does a Primary Residence Worth Approximately 50 Million Baht or Less Owe Land and Building Tax

If it meets the full primary-residence conditions, meaning the owner is a natural person, owns both land and house, and is listed in the house registration book, an appraised value of approximately 50 million baht or less is fully exempt from land and building tax.

How Does a Second Home in Khao Yai or Pak Chong Pay Tax Differently from a Primary Residence

A second home gets no 50 million baht exemption and owes tax from the very first baht of appraised value, at approximately 0.02 to 0.05 percent depending on the value bracket. A similarly valued primary residence usually owes nothing at all, since it falls under the legal exemption.