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Egypt salary tax brackets 2026: how the progressive tiers work

The 2026 Egyptian salary tax brackets explained: the EGP 20,000 exemption, the 0% to 27.5% bands, the tier system above EGP 600,000, and a worked example.

Last reviewed: 30 Oct 2026 · Laws covered: Income Tax Law 91/2005 · Law 30/2023 · Law 7/2024

In 2026 Egyptian salary tax is charged on annual net taxable income in progressive bands that start at 0% on the first EGP 40,000 and rise to 25% on the slice between EGP 400,000 and EGP 600,000, after a personal exemption of EGP 20,000 a year. Above EGP 600,000 the lower bands fall away one by one, and anyone with more than EGP 1,200,000 pays a flat 27.5% on the whole amount. These figures come from Law 7/2024, in force since 1 March 2024, and have not changed for 2025 or 2026.

How the brackets work

Egypt taxes salaries under Income Tax Law 91/2005. The tax is called "tax on salaries and the like" (ضريبة المرتبات وما في حكمها), and most people in payroll still call it by its older name, ضريبة كسب العمل. The employer calculates it, deducts it from pay every month and sends it to the Egyptian Tax Authority (ETA).

The tax is worked out on an annual figure, even though it is deducted monthly. Three steps get you from gross pay to the number the brackets apply to:

  1. Start with the annual taxable gross salary (basic pay plus taxable allowances, bonuses and benefits).
  2. Deduct the employee's share of social insurance (11% of the insurable wage) and the annual personal exemption of EGP 20,000.
  3. Round the result down to the nearest EGP 10. This is the annual net taxable income.

The brackets are progressive: each band only taxes the slice of income that falls inside it. Earning EGP 1 over a threshold does not push your whole salary into a higher rate (with one important exception, the tier system, explained below).

The 2026 brackets (annual net taxable income up to EGP 600,000)

Annual net taxable income (EGP)Rate
0 to 40,0000%
40,000 to 55,00010%
55,000 to 70,00015%
70,000 to 200,00020%
200,000 to 400,00022.5%
400,000 to 600,00025%
0%10%20%30%0%0k–40k10%40k–55k15%55k–70k20%70k–200k22.5%200k–400k25%400k–600kAnnual net taxable income (EGP)
Bands for taxable income up to EGP 600,000 a year, after the EGP 20,000 personal exemption.

Remember the EGP 20,000 exemption sits in front of the table. An employee with no other deductions pays no tax until their annual taxable gross, net of social insurance, passes about EGP 60,000, which is EGP 5,000 a month.

The tier system above EGP 600,000

This is the part that confuses most people. Egypt does not simply add higher bands on top of the table. Instead, once annual net taxable income passes EGP 600,000 the lowest bands are removed one at a time, so that the first slices of income are taxed at a higher rate than before.

Annual net taxable income (EGP)How the bands apply
Up to 600,000Full table: 0%, 10%, 15%, 20%, 22.5%, 25%
600,000 to 700,000The 0% band disappears: the first 55,000 is taxed at 10%, then 15% to 70,000, 20% to 200,000, 22.5% to 400,000, 25% to 700,000
700,000 to 800,000The 0% and 10% bands disappear: the first 70,000 is taxed at 15%, then 20%, 22.5%, 25% to 800,000
800,000 to 900,000Starts at 20% on the first 200,000, then 22.5% to 400,000, 25% to 900,000
900,000 to 1,200,000Starts at 22.5% on the first 400,000, then 25% to 1,200,000
Above 1,200,000The whole amount is taxed at 27.5%
≤ 600k600k–700k700k–800k800k–900k900k–1.2m> 1.2m0%10%15%20%22.5%25%27.5%
Each row is an annual income range; the coloured cells are the bands that still apply to it.

Two practical consequences:

  • Within a tier the tax is still progressive, so the usual "only the slice is taxed" logic holds.
  • At each tier boundary the tax jumps. An employee whose annual net taxable income rises from EGP 599,990 to EGP 600,010 loses the 0% band on the first EGP 40,000 and pays about EGP 4,000 more tax for EGP 20 more income. Payroll systems and employees both need to know this when negotiating raises close to a boundary.

Worked example: EGP 15,000 a month

Monthly gross EGP 15,000, made up of a basic wage plus allowances of 30% of basic, so social insurance is calculated on the basic wage of EGP 11,538.46 (the common Egyptian practice; the law's definition of the insurable wage is wider).

  • Employee social insurance: 11% × 11,538.46 = EGP 1,269.23 a month, EGP 15,230.76 a year.
  • Annual taxable gross: 15,000 × 12 = EGP 180,000.
  • Annual net taxable income: 180,000 − 15,230.76 − 20,000 = 144,769.24, rounded down to EGP 144,760.
  • Tax by band: 0% on 40,000 = 0; 10% on 15,000 = 1,500; 15% on 15,000 = 2,250; 20% on 74,760 = 14,952.
  • Annual tax: EGP 18,702. Monthly tax: 18,702 ÷ 12 = EGP 1,558.50.
  • Net pay after insurance, tax and the 0.05% Martyrs' Fund deduction (EGP 7.50): EGP 12,164.77.

The effective tax rate is 10.4% of gross, even though the top band this employee touches is 20%.

Try it in the calculator

A higher earner: monthly gross EGP 60,000 with the same 30% allowance split. Social insurance is capped at the 2026 maximum insurable wage of EGP 16,700, so the employee pays EGP 1,837 a month (EGP 22,044 a year).

  • Annual net taxable income: 720,000 − 22,044 − 20,000 = EGP 677,950 (already a multiple of 10).
  • This is in the 600,000 to 700,000 tier, so the 0% band is gone: 10% on 55,000 = 5,500; 15% on 15,000 = 2,250; 20% on 130,000 = 26,000; 22.5% on 200,000 = 45,000; 25% on 277,950 = 69,487.50.
  • Annual tax EGP 148,237.50; monthly tax EGP 12,353.13; net pay EGP 45,779.87.

Common mistakes

  • Applying the brackets to monthly figures. The bands are annual. Multiply the monthly taxable pay by 12 (or use actual year-to-date figures), compute the annual tax, then divide by 12.
  • Forgetting the exemption or applying it monthly without rounding. The EGP 20,000 is an annual amount; the round-down to EGP 10 happens on the annual figure, not the monthly one.
  • Treating the tiers as extra bands. Above EGP 600,000 the lower bands are removed, not added to. Software that simply extends the table will under-withhold.
  • Deducting the wrong insurance. Only the employee's 11% share reduces taxable income. The employer's 18.75% is a cost to the company and never touches the employee's tax base.
  • Assuming the 27.5% rate is marginal. Above EGP 1,200,000 it applies to the entire net taxable income, not just the excess.

FAQ

Did the salary tax brackets change in 2025 or 2026?

No. The current table was introduced by Law 7/2024 with effect from 1 March 2024. The 2025 "tax facilities" laws (Laws 5, 6 and 7 of 2025) and Law 151/2026 dealt with dispute settlement, small enterprises, procedures, capital gains and dividends; none of the published summaries report a change to the salary brackets or the EGP 20,000 exemption. SalaryEG applies the current figures automatically.

Is the EGP 40,000 band the same as the EGP 20,000 exemption?

No, they are different things that stack. The exemption is deducted first, then the first EGP 40,000 of what is left is taxed at 0%. In practice a salary of about EGP 5,000 a month pays no tax.

Does a non-Egyptian employee use the same brackets?

Yes. Since Law 11/2013 non-resident employees working in Egypt are taxed on their Egyptian-source salary with the same progressive table; the old flat 10% rate for non-residents no longer applies.

What if the employee has a second employer?

Amounts paid to a resident by someone other than the original (principal) employer are taxed separately at a flat 10% with no deductions or exemption, under Article 11 of the law. The principal employer applies the full brackets.

Sources

General information, not legal or tax advice. Rules change; check the official sources and your adviser for your situation.