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How Egypt's salary tax law changed: from Law 91/2005 to today
A short history of Egyptian salary tax: Law 91/2005, the 2020 bracket reform, the 2023 and 2024 increases to the personal exemption, and what has not changed since.
Last reviewed: 30 Oct 2026 · Laws covered: Income Tax Law 91/2005 · Law 26/2020 · Law 30/2023 · Law 7/2024 · Law 5/2025
Egyptian salary tax still runs on Income Tax Law 91/2005, but the brackets and the personal exemption have been rewritten several times: a full restructuring in 2020, a higher exemption and a new top rate in 2023, and the current figures from Law 7/2024, in force since 1 March 2024. The 2025 and 2026 amendments to the tax code dealt with other taxes and left salary tax as it was.
Why the history matters for payroll
Payroll runs on annual figures. A tax law that changes mid-year, as the 2023 and 2024 amendments did, means two sets of rules inside one tax year and a careful annual settlement. Knowing which law applied to which months is also what lets you check an old payslip, answer an employee's question, or reconcile a tax inspection.
The milestones
| Law | In force | What changed for salaries |
|---|---|---|
| Law 91/2005 | July 2005 | The modern income tax law. Salary tax on a progressive scale with a personal exemption of EGP 4,000 (raised to 7,000 in 2014 and 8,000 in 2019). Top rate 20%, later 22.5%. |
| Law 26/2020 | May 2020 | Rewrote the brackets: 0% on the first EGP 15,000, then 2.5%, 10%, 15%, 20%, 22.5% and 25%, with the tier system that removes the lower bands as income rises. Personal exemption EGP 9,000. |
| Law 30/2023 | June 2023 | Personal exemption raised to EGP 15,000. The 0% band widened to EGP 21,000 and the other bands moved up; a new top rate of 27.5% on income above EGP 1,200,000. |
| Law 7/2024 | 1 March 2024 | Personal exemption raised to EGP 20,000. The 0% band widened to EGP 40,000, then 10% to 55,000, 15% to 70,000, 20% to 200,000, 22.5% to 400,000, 25% to 600,000; 27.5% above 1,200,000. These are the figures used in 2025 and 2026. |
| Law 5/2025 and related laws | February 2025 | The "tax facilities" package: a simplified regime for small businesses, penalty relief and procedural changes. No change to salary brackets or the exemption. |
The 2024 figures took effect from 1 March 2024, so the 2024 tax year was settled in two parts: January–February under Law 30/2023 and March–December under Law 7/2024. From 1 January 2025 a single set of rules applies to the whole year.
What the 2020 reform introduced
Before 2020 the lower bands applied to everyone. Law 26/2020 introduced the tier system that is still in force: as annual taxable income passes EGP 600,000, 700,000, 800,000, 900,000 and 1,200,000, the lowest band falls away each time, so a high earner does not benefit from the 0% or 10% slices at all. The practical effect is a small jump in tax at each threshold, which is why net-to-gross calculations can land in a gap at those points.
How much the exemption moved
| Year | Personal exemption (annual) |
|---|---|
| 2005 | EGP 4,000 |
| 2014 | EGP 7,000 |
| 2019 | EGP 8,000 |
| 2020 | EGP 9,000 |
| 2023 | EGP 15,000 |
| 2024 onwards | EGP 20,000 |
The exemption is deducted from annual taxable gross after the employee's social insurance share. Because it has grown faster than the lower brackets, an employee earning around the minimum wage pays little or no salary tax today, which was not true a decade ago.
Gross EGP 10,000 a month, fully insured, 2026 rules. Annual gross 120,000 − employee insurance 13,200 − exemption 20,000 = 86,800 taxable. Tax: 0% on 40,000, 10% on 15,000 (1,500), 15% on 15,000 (2,250), 20% on 16,800 (3,360) = EGP 7,110 a year, EGP 592.50 a month. Under the 2023 rules (exemption 15,000, 0% band to 21,000) the same salary paid roughly EGP 11,000 a year.
What did not change
- The tax base: taxable gross minus the employee's social insurance contribution minus the exemption, rounded down to the nearest EGP 10.
- The employer's role: withhold the tax every month, remit it, file the quarterly declaration and the annual settlement.
- The exemptions in Article 13 (social insurance contributions, certain in-kind benefits, pension and insurance premiums within limits).
Looking ahead
Egypt's tax policy document for 2024–2030 signals a preference for widening the base rather than raising rates on salaries, and the amendments of 2025 and 2026 followed that line. Any change usually arrives through a law published in the Official Gazette with an effective date at the start of a month; SalaryEG stores the rules each saved payroll run was calculated under, so a change in the law never alters a past run.
Frequently asked questions
Did the 2025 tax facilities laws change salary tax?
No. Laws 5, 6 and 7 of 2025 covered small-business taxation, penalties and procedures. Salary brackets and the EGP 20,000 exemption stayed as set by Law 7/2024.
Which rules apply to a payment for an earlier year?
The rules of the year the income relates to, for salary accrued in that year; a late payment of 2024 salary is settled under 2024 rules. Keep the old payslips and the annual settlement for that year.
Where can I read the law itself?
The consolidated text of Law 91/2005 and its amendments is published by the Egyptian Tax Authority and in the Official Gazette; the Big Four tax summaries for Egypt track each amendment in English.
Sources
- Income Tax Law 91/2005 and amendments (Egyptian Tax Authority, eta.gov.eg)
- Law 26/2020 amending Law 91/2005 (Official Gazette, May 2020)
- Law 30/2023 amending Law 91/2005 (Official Gazette, June 2023)
- Law 7/2024 amending Law 91/2005 (Official Gazette, February 2024)
- Law 5/2025 on tax facilities (Official Gazette, February 2025)
- PwC Worldwide Tax Summaries, Egypt: individual taxes on personal income
General information, not legal or tax advice. Rules change; check the official sources and your adviser for your situation.