The CM11 armoured vehicle carrying five soldiers was returning to camp in southern Pingtung county around after completing the firing test when it slipped from a bridge and fell upside down into the Wangsha river, the army said.
The driver managed to escape but four others were trapped inside the vehicle and showed no signs of life when they were rescued.
They were rushed to hospital but emergency treatment failed to revive them, said Alfonso Yang, a spokesman for the Eighth Army Command, the regiment the soldiers belonged to.
The accident happened just days before the military is due to stage annual live-fire wargames codenamed "Han Kuang 32" (Han Glory), also in Pingtung county next week, the island's main yearly drill.
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