Lebanon Personal Tax Guide 2026

Lebanon levies a progressive personal income tax (IIT) with rates ranging from 2% to 25%. Brackets are set in LBP but are commonly calculated on a USD-equivalent basis in practice.

IIT Brackets 2026

The progressive rates apply to taxable income after deductions:

2% — on first LBP 6 million (~USD 400)
4% — on LBP 6 million to 15 million
7% — on LBP 15 million to 30 million
11% — on LBP 30 million to 60 million
15% — on LBP 60 million to 120 million
20% — on LBP 120 million to 200 million
25% — on income above LBP 200 million

USD-Based Calculation

Due to the severe depreciation of the LBP since 2019, many employers and tax practitioners calculate IIT using an implicit USD exchange rate. The official brackets are adjusted irregularly and often lag behind market rates, creating a de facto lower effective tax burden for USD-denominated income.

Taxable Income

Employment income, business profits, and professional fees are taxable. Certain categories such as agricultural income and some capital gains may be exempt or subject to separate treatment.

Deductions and Allowances

Limited personal deductions are available, including contributions to the National Social Security Fund (NSSF), life insurance premiums, and certain mortgage interest payments. The standard personal allowance is modest relative to the bracket structure.

Payroll Tax

Employees face a separate graduated payroll tax of 3–5% on a portion of salary. This is withheld at source by employers.