Egypt’s Personal Income Tax in 2026
Personal Income Tax in Egypt is governed by Income Tax Law No. 91 of 2005, and 2025 returns must be filed by 31 March. The Egyptian tax system continues to apply a progressive tax structure, with salaries and their related components constituting the primary source of taxable income for individuals. In this context, the legislator has placed particular emphasis on the tax treatment of income earned by natural persons, with the aim of ensuring consistency, legal certainty, and equitable application of the law.
A sound understanding of Egypt’s taxation framework—including personal income tax and social insurance obligations—is therefore essential for both individuals and businesses seeking to achieve effective compliance. The following overview outlines the key components of the Egyptian tax system in respect of natural person’s income and highlights the principal considerations that taxpayers should take into account when preparing their returns and managing their ongoing tax obligations.
Taxation of Personal Income
Under the Egyptian personal income tax regime, certain sources of income, including pensions, end-of-service gratuities, and specific allowances, are exempt from income tax. In addition, the legislator has updated the personal tax exemption threshold to EGP 20,000. Income derived from self-employment or business activities is subject to taxation in accordance with the applicable progressive income tax brackets.
| Tax rate |
Net income that doesn’t exceed 600,000 EGP |
Over 600,000 EGP up to 700,000 EGP |
Over 700,000 EGP up to 800,000 EGP |
Over 800,000 EGP up to 900,000 EGP |
Over 900,000 EGP up to 1,200,000 EGP |
Over 1,200,000 EGP |
| 0% |
1 EGP up to 40,000 EGP |
– |
– |
– |
– |
– |
| 10% |
Over 40,000 EGP up to 55,000 EGP |
1 EGP up to 55,000 EGP |
– |
– |
– |
– |
| 15% |
Over 55,000 EGP up to 70,000 EGP |
Over 55,000 EGP up to 70,000 EGP |
1 EGP up to 70,000 EGP |
– |
– |
– |
| 20% |
Over 70,000 EGP up to 200,000 EGP |
Over 70,000 EGP up to 200,000 EGP |
Over 70,000 EGP up to 200,000 EGP |
1 EGP up to 200,000 EGP |
– |
– |
| 22.50% |
Over 200,000 EGP up to 400,000 EGP |
Over 200,000 EGP up to 400,000 EGP |
Over 200,000 EGP up to 400,000 EGP |
Over 200,000 EGP up to 400,000 EGP |
1 EGP up to 400,000 EGP |
– |
| 25% |
Over 400,000 EGP up to 600,000 EGP |
Over 400,000 EGP up to 700,000 EGP |
Over 400,000 EGP up to 800,000 EGP |
Over 400,000 EGP up to 900,000 EGP |
Over 400,000 EGP up to 1,200,000 EGP |
1 EGP up to 1,200,000 EGP |
| 27.50% |
– |
– |
– |
– |
– |
Over 1,200,000 EGP |
Personal Income Tax in Egypt – Quick Calculator
Estimate annual salary tax based on the current progressive brackets and the EGP 20,000 personal exemption.
Include basic salary and taxable cash allowances before income tax.
*Effective rate is calculated as annual tax ÷ annual gross income.
Current brackets
After applying the EGP 20,000 personal exemption, the following progressive brackets apply:
| Net taxable band (EGP) |
Rate |
| 0 – 40,000 |
0% |
| 40,001 – 55,000 |
10% |
| 55,001 – 70,000 |
15% |
| 70,001 – 200,000 |
20% |
| 200,001 – 400,000 |
22.5% |
| 400,001 – 1,200,000 |
25% |
| > 1,200,000 |
27.5% |
Note: This calculator is for illustration and educational purposes only and does not constitute tax or legal advice.
Employment Income: including salaries and bonuses, is subject to income tax for both residents and non-residents, regardless of where the remuneration is received, and is taxed at progressive rates ranging from 10% to 27.5% depending on the level of income.
Equity compensation: may be subject to taxation upon realization, generally calculated as the difference between the fair market value of the shares and the price paid by the employee.
Capital Gains: Profits from share sales, whether listed or unlisted, are subject to capital gains tax, influenced by residency status and share type.
Returns Received from Funds: Gains from funds received by individuals are taxed at a flat rate.
Dividend and Bunds Interest Income: Dividends distributed by Egyptian companies and interest income earned from local banks are subject to withholding tax, with applicable rates differing based on the recipient’s residency status.
Rental Income: Taxable income from real estate rentals is determined after deducting a specified percentage from the actual rental value.
Understanding these tax regulations is crucial for accurate tax reporting and compliance.
Social Security Contributions
Egypt mandates social security and social insurance contributions for both employers and employees to provide comprehensive benefit coverage. Here’s a summary of the contribution rates and other relevant details:
Aging, Disability, and Death Insurance: Contributions total 21% (9% by employees and 12% by employers).
Health Insurance and Injuries and Unemployment: Health insurance contributions amount to a total of 4.25%, borne at 1% by the employee and 3.25% by the employer, while employers are additionally required to contribute between 1.5% and 2% for work injury insurance and 1% toward unemployment benefits.
End of Service Bonus: Contributions total 2% (1% each by employees and employers).
Insurable Salary: Monthly salary thresholds range from EGP 1200 to EGP 8100, adjusted annually based on inflation rates.
Exempted Allowances: Certain allowances, like meals and housing, are excluded from the insurable salary calculation, capped at 30% of the total.
Compliance with these regulations is essential to ensure proper benefit coverage and adherence to legal requirements for both employers and employees.
Frequently Asked Questions
What is personal income tax in Egypt?
+
Personal income tax in Egypt is a progressive tax on income earned by natural persons under Income Tax Law No. 91 of 2005.
It applies mainly to employment income (salaries, wages, bonuses and similar benefits) and certain other income sources,
with higher income levels taxed at higher rates.
Who must file personal income tax in Egypt?
+
Any natural person with taxable income in Egypt must file an annual return, including employees, professionals and business
owners whose income exceeds the exempt threshold. Both residents and non-residents with Egyptian-source income can be liable,
depending on where the work is performed and where the income arises.
What are the income tax brackets in Egypt?
+
Egypt uses progressive bands. After the personal exemption, income is taxed in rising brackets, with lower bands taxed at
lower rates and higher bands at higher rates, up to a top marginal rate of 27.5%. Your total tax is calculated by applying
each rate only to the portion of income that falls within that band.
What is the deadline for tax returns in Egypt?
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For individuals, the deadline for filing the annual personal income tax return for a given fiscal year is generally
31 March of the following year. Missing this deadline can lead to penalties and interest, so taxpayers are encouraged to
prepare their documentation and submit early.
How is employment income taxed in Egypt?
+
Employment income, including salaries, bonuses, allowances and most cash benefits, is aggregated on an annual basis and
subject to personal income tax at the progressive rates. Employers usually withhold tax at source each month, but the
employee remains responsible for the accuracy of the annual tax position and return.
How are non residents taxed in Egypt?
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Non-residents are generally taxed in Egypt on income arising from Egyptian sources, such as work performed in Egypt or
services rendered to Egyptian entities. Their Egyptian-source employment income is subject to the same progressive personal
income tax rates, even if the salary is paid abroad.
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