Jordan Personal Income Tax Guide 2026

Overview — Income and Sales Tax Department (ISTD)

The Income and Sales Tax Department (ISTD) administers all income tax in Jordan under the Income Tax Law (No. 34 of 2014 as amended). Jordanian tax residents are taxed on worldwide income; non-residents are taxed only on Jordanian-source income. Tax residency is determined by physical presence of 183+ days in a calendar year. Employees have tax withheld at source by their employer. Self-employed individuals and business owners must file annual tax returns through the ISTD online portal.

IIT Tax Brackets 2026

Jordan applies a progressive annual bracket system with a JOD 6,000 threshold. For 2026, the annual brackets are as follows:

• 0% — on the first JOD 6,000 of annual income
• 5% — on the next JOD 6,000 (JOD 6,001–12,000)
• 10% — on the next JOD 12,000 (JOD 12,001–24,000)
• 20% — on the next JOD 36,000 (JOD 24,001–60,000)
• 30% — on income above JOD 60,000

These brackets mean that a taxpayer earning JOD 100,000/year pays zero tax on the first JOD 6,000, then JOD 300 on the 5% bracket, JOD 1,200 on the 10% bracket, JOD 7,200 on the 20% bracket, and JOD 12,000 on the portion above JOD 60,000 — total tax of approximately JOD 20,700, an effective rate of ~20.7%.

Personal Reliefs and Deductions

Jordanian tax residents are entitled to several reliefs and deductions against their taxable income. Key personal reliefs include a basic exemption of JOD 6,000 per individual. Additional deductions are available for dependants, life insurance premiums (up to specified limits), contributions to registered pension schemes, and charitable donations to approved organisations (up to 25% of taxable income). Medical expenses and education costs may also be deductible under specific conditions. These deductions must be claimed in the annual tax return with supporting documentation.

Employee Withholding (WHT on Salaries)

Employers are required to withhold income tax from employee salaries under the payroll withholding system. The employer calculates monthly tax based on the annualised gross salary, applies the progressive brackets, deducts the JOD 6,000 threshold, and remits the tax to ISTD by the 15th of the following month. Employees receive an annual tax statement summarising total tax deducted. Employers must register for payroll withholding with ISTD and file monthly returns. Failure to remit attracts penalties of up to 25% of the unpaid tax plus interest.

Filing Requirements

All individuals with income subject to tax must file an annual tax return through the ISTD online portal by 30 April of the following year. Employees whose tax is fully withheld still file a simplified return to confirm their income and claim deductions. Self-employed individuals must file a detailed return with business income, expenses, and instalment tax paid. Late filing attracts a penalty of JOD 100–500 depending on the delay, plus interest on unpaid tax.

FAQs

Do I need to file an annual return if I am a salaried employee?

Yes, all employees must file an annual tax return via the ISTD online portal by 30 April, even if tax was fully withheld at source.

Are bonuses and allowances taxable?

Yes, all cash payments including bonuses, commissions, housing allowances, and other benefits are taxable as employment income.

Can married couples file jointly?

No, Jordan requires each individual to file separately. There is no joint filing for married couples.

What is the penalty for non-compliance?

Late filing attracts penalties of JOD 100–500. Late payment attracts interest. Evasion can result in penalties of up to 100% of the tax evaded plus criminal prosecution.

Disclaimer

This guide provides general information about Jordanian personal income tax for the 2026 tax year. Tax laws, rates, and regulations may change. Always consult with a qualified Jordanian tax advisor or the Income and Sales Tax Department for advice specific to your situation. InvestmentKit does not provide tax advice.