Taiwan is a young orogenic belt with complex spatial distributions of deformation and earthquakes. We have constructed a three-dimensional finite element model to explore how the interplays between lithospheric struc- ture and plate boundary processes control the distribution of stress and strain rates in the Taiwan region. The model assumes a liberalized power-law rheology and incorporates main lithospheric structures; the model domain is loaded by the present-day crustal velocity applied at its bound- aries. The model successfully reproduces the main features of the GPS-measured strain rate patterns and the earth- quake-indicated stress states in the Taiwan region. The best fitting model requires the viscosity of the lower crust to be two orders of magnitude lower than that of the upper crust and lithospheric mantle. The calculated deviatoric stress is high in regions of thrust faulting and low in regions of extensional and strike-slip faulting, consistent with the spatial pattern of seismic intensity in Taiwan.