Egypt Personal Income Tax Guide 2026

Overview — Income Tax Under Law 91/2005

Egyptian personal income tax is governed by Law No. 91 of 2005 (the Income Tax Law). The Egyptian Tax Authority (ETA, مصلحة الضرائب) administers all income taxes. Tax residents are taxed on their worldwide income, while non-residents are taxed only on Egyptian-source income. The tax year runs from 1 January to 31 December. Employers withhold tax at source on salaries and wages under a monthly PAYE-like system (tax card system). Self-employed individuals and business owners file annual returns. Egypt has a progressive rate structure with six brackets and a significant personal allowance.

Tax residency is determined by physical presence (183+ days in a calendar year) or having a permanent home in Egypt that constitutes a centre of vital interests. Egyptian nationals working abroad may still be considered resident depending on their ties to Egypt.

Personal Allowance — EGP 45,000 (Exempt Threshold)

For the 2026 tax year, the first EGP 45,000 of annual income is exempt from personal income tax. This is a general personal allowance available to all resident individuals, regardless of age, marital status, or number of dependents. The allowance means that any individual earning up to EGP 45,000 per year pays zero income tax. This threshold was increased from previous years as part of ongoing tax reforms under the government's economic programme. The allowance applies to the aggregate annual income from all sources.

Progressive IIT Brackets — 2026 Tax Year

Income above the EGP 45,000 personal allowance is taxed at progressive rates across six brackets:

• EGP 0 – 45,000: 0% (exempt — covered by personal allowance)
• EGP 45,001 – 60,000: 10%
• EGP 60,001 – 200,000: 15%
• EGP 200,001 – 400,000: 20%
• EGP 400,001 – 800,000: 22.5%
• Over EGP 800,000: 25%

Each bracket applies only to the portion of income falling within that range. For example, an individual earning EGP 250,000 pays: 0% on the first EGP 45,000, 10% on the next EGP 15,000 (EGP 45k–60k), 15% on the next EGP 140,000 (EGP 60k–200k), and 20% on the remaining EGP 50,000 (EGP 200k–250k). The marginal rate reaches 25% only for income above EGP 800,000.

Wages and Salaries Tax — Monthly Withholding

Employers are required to withhold income tax from employee salaries on a monthly basis using the tax card system (بطاقة ضريبية). Each employee has a tax card filed with the employer that records their personal allowance and applicable bracket. The employer calculates the monthly tax by applying the annual progressive rates on a pro-rata basis. Key features:

• Tax is withheld monthly and remitted to the ETA by the 15th of the following month
• The employer provides an annual tax certificate (شهادة ضريبية) summarising total salary, deductions, and tax withheld
• Employees earning below EGP 45,000 annually have no tax withheld
• End-of-service benefits and bonuses are taxable in the year received

Social Insurance Deductions

Social insurance contributions are mandatory for most employees and are deducted from gross salary before income tax is calculated (tax-deductible). The 2026 contribution rates are:

• Employee contribution: 11% of gross salary (9% pension + 2% insurance/health) — subject to a monthly cap on insurable earnings
• Employer contribution: 18.75% of gross salary (paid on top of salary)

The pension contribution (9%) goes to the Government Pension Fund and provides retirement, disability, and survivor benefits. The 2% health insurance contribution funds access to public healthcare. The insurable earnings cap is adjusted periodically by the government and typically ranges between EGP 10,000–15,000 per month.

Filing Requirements

Individuals with wage and salary income only generally do not need to file an independent tax return — the employer's monthly withholding and annual certificate serve as the primary compliance mechanism. However, individuals with additional income sources (business income, rental income, investment income) must file an annual tax return by 31 March of the following year. Key points:

• Annual tax returns are filed at the local tax office (مأمورية ضرائب) based on the taxpayer's place of residence
• Self-employed individuals (مهن حرة) must file regardless of income level
• Late filing penalties range from EGP 500 to EGP 3,000 per month, capped at EGP 30,000
• The ETA has been moving toward electronic filing through its online portal

Tax Treaties and Foreign Income

Egypt has an extensive network of double taxation treaties, including with most EU countries, Arab states, China, India, and the United States. Tax residents may claim a foreign tax credit for income taxes paid abroad on foreign-source income, limited to the Egyptian tax attributable to that income. Treaty provisions may reduce or eliminate Egyptian tax on certain types of income such as dividends, interest, and royalties.

FAQs

Do I need to file a tax return if I only have salary income?

Generally no, if your employer withholds the correct amount of tax through the monthly tax card system. However, if you have multiple employers during the year, or additional income sources, you should file an annual return to ensure correct tax computation.

What happens if my employer does not deduct tax correctly?

The employer is liable for correct withholding. If insufficient tax is deducted, the ETA may assess the shortfall against the employer. The employee may still be ultimately liable for the correct tax amount. You should obtain your annual tax certificate and verify the calculations.

Are bonuses and profit shares taxable?

Yes, bonuses, commissions, profit shares, and other employment-related benefits are taxable as part of employment income in the year they are received.

Can married couples file jointly?

Egypt does not have joint filing. Each individual files separately and is entitled to their own EGP 45,000 personal allowance, regardless of marital status.

Disclaimer

This guide provides general information about Egyptian personal income tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Egyptian tax advisor or the Egyptian Tax Authority (ETA) directly for advice specific to your situation. InvestmentKit does not provide tax advice.