Insights
Egypt Salary Income Tax 2026: Brackets, Exemption and Payroll Withholding
Insights · By Chen ChunJie · Updated 25 October 2026
In Egypt, salary tax is withheld by the employer every month. Each employee gets a personal exemption of EGP 20,000 a year, and the first EGP 40,000 of taxable income is taxed at 0%. Rates then rise from 10% to 27.5%, and for annual taxable income above EGP 600,000 the lower bands fall away step by step. Employee social insurance at 11% is deducted before tax. On a monthly salary of EGP 20,000, salary tax is about EGP 2,445 a month.
Last reviewed in October 2026 against Income Tax Law 91 of 2005 as amended by Law 7 of 2024, Social Insurance Law 148 of 2019 and the 2026 insurable wage limits. General information, not tax advice.
Salary tax brackets in Egypt for 2026
The brackets below apply to annual taxable salary, after employee social insurance and the EGP 20,000 personal exemption have been deducted. They have applied to employment income since March 2024.
| Annual taxable income (EGP) | Rate |
|---|---|
| Up to 40,000 | 0% |
| 40,001 to 55,000 | 10% |
| 55,001 to 70,000 | 15% |
| 70,001 to 200,000 | 20% |
| 200,001 to 400,000 | 22.5% |
| 400,001 to 1,200,000 | 25% |
| Above 1,200,000 | 27.5% |
How the lower bands fall away for high earners
Above EGP 600,000 of annual taxable income, the benefit of the lower bands is withdrawn in steps:
| Annual taxable income (EGP) | How it is taxed |
|---|---|
| 600,001 to 700,000 | No 0% band: the first EGP 55,000 is taxed at 10%, then the normal bands apply |
| 700,001 to 800,000 | The first EGP 70,000 is taxed at 15% |
| 800,001 to 900,000 | The first EGP 200,000 is taxed at 20% |
| 900,001 to 1,200,000 | The first EGP 400,000 is taxed at 22.5% |
| Above 1,200,000 | The first EGP 1,200,000 is taxed at 25%, and the rest at 27.5% |
From gross salary to tax: a worked example
An employee in Egypt earns EGP 20,000 a month (EGP 240,000 a year), with no other income.
| Step | Annual amount (EGP) |
|---|---|
| Gross salary | 240,000 |
| Less employee social insurance: 11% of the capped insurable wage of EGP 16,700 a month | – 22,044 |
| Less personal exemption | – 20,000 |
| Taxable income, rounded down to the nearest EGP 10 | 197,950 |
| Tax: 0% on 40,000, 10% on 15,000, 15% on 15,000, 20% on 127,950 | 29,340 |
| Monthly salary tax withheld | about 2,445 |
After salary tax, social insurance of EGP 1,837 and the 0.05% Martyrs Fund deduction of EGP 10, net pay is about EGP 15,708 a month. Run your own figures in the Egypt salary calculator.
What the employer must do
- Register as an employer with the Egyptian Tax Authority and the National Organization for Social Insurance before the first hire.
- Calculate salary tax every month on an annualised basis and withhold it from pay.
- Remit the tax and social insurance in the following month, as the authorities’ schedules require.
- File the periodic and annual salary tax returns. The annual return reconciling all withholding is due by 31 March.
- Keep payroll records and give employees payslips showing gross pay, deductions and net pay.
Already have an Egyptian company? Our Egypt payroll service handles withholding and filings. Hiring without one? Our Egypt employer of record becomes the employer and does this for you.
Who is taxed in Egypt
- Tax residents include individuals who have a permanent home in Egypt or who are present in Egypt for more than 183 days in a 12-month period.
- Salary for work performed in Egypt is taxable in Egypt whether the employee is resident or not, and the same brackets apply.
- Foreign employees may also be taxed at home. Relief depends on the specific tax treaty, the employee’s residence and who bears the cost of the salary, so check each case rather than assuming an exemption.
Hiring a foreign national? Work permit and residence rules come first. See Expat Employment in Egypt.
FAQ: salary tax in Egypt
What is the personal tax exemption in Egypt?
EGP 20,000 a year for each employee, on top of the 0% band that covers the first EGP 40,000 of taxable income.
What is the top income tax rate in Egypt?
27.5%, on annual taxable income above EGP 1,200,000. At that level the first EGP 1,200,000 is taxed at 25%.
Is social insurance deducted before income tax?
Yes. The employee’s 11% social insurance contribution on the insurable wage is deducted before salary tax is calculated.
Who withholds salary tax in Egypt?
The employer, every month. It remits the tax to the Egyptian Tax Authority and reconciles it in the annual return due by 31 March.
How much does an employer pay on top of salary?
Mainly employer social insurance of 18.75% on the insurable wage, capped at EGP 3,131.25 a month in 2026. See the Egypt employment law guide for the full list.
Hiring in Egypt before you have a company?
Tell us about the role and salary. We confirm the employment structure and send a cost breakdown covering salary, social insurance, tax and benefits before an offer is made.
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Routes, contracts, pay, leave and termination in 2026.
Gross to net and employer cost for any salary.