How Income Tax Works in Egypt (2026)
Egypt taxes salaries under Law 7/2024. Taxable income = annual gross − EGP 20,000 personal exemption − your 11% social insurance contribution. Then 7 progressive brackets from 0% to 27.5%. Above EGP 600,000 net income, Law 7/2024 progressively withdraws the lower brackets (alternative columns).
The brackets (annual taxable income)
| Annual taxable (EGP) | Rate |
|---|---|
| 0 – 40,000 | 0% |
| 40,001 – 55,000 | 10% |
| 55,001 – 70,000 | 15% |
| 70,001 – 200,000 | 20% |
| 200,001 – 400,000 | 22.5% |
| 400,001 – 1,200,000 | 25% |
| Above 1,200,000 | 27.5% |
Social insurance
Employees pay 11% (employer 18.75%) on insurable salary between EGP 2,700 and EGP 16,700/month for 2026 — deducted before tax.
Worked example
Monthly salary of EGP 30,000: annual = 360,000. SI = 11% × 16,700 × 12 = EGP 22,044. Taxable = 360,000 − 20,000 − 22,044 = EGP 317,956. Tax = 29,750 + 22.5% × 117,956 = EGP 56,290/year (≈EGP 4,691/month).
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Another worked example
Monthly salary of EGP 25,000 (EGP 300,000/year): SI = 11% × 16,700 (capped) = EGP 1,837/mo (EGP 22,044/yr). Taxable = 300,000 − 20,000 − 22,044 = EGP 257,956. Tax = 1,500 + 2,250 + 20% × 157,956 = EGP 35,341.20/year (≈EGP 2,945/mo). Take-home = 25,000 − 1,837 − 2,945 = EGP 20,218/month.
Reading your Egyptian payslip
Three lines to check: social insurance 11% — verify it's on the insurable band (max EGP 16,700/month), not your full salary; the EGP 20,000 personal exemption — it should reduce your taxable income before brackets; and income tax. If you earn above EGP 600,000/year net, your tax line should reflect the Law 7/2024 alternative columns (higher effective rates), not the standard 7-band table. Bonuses and variable pay are taxed in the month they're paid.
Common mistakes
1. Standard brackets above EGP 600,000. Law 7/2024 withdraws the lower brackets progressively — high earners pay more.
2. Social insurance on the full salary. 11% applies to the EGP 2,700–16,700/month band only.
3. Forgetting the EGP 20,000 personal exemption. It comes off before the brackets, every year.
What counts as taxable income in Egypt
Egypt taxes salaries, wages, bonuses, commissions, overtime, allowances, and benefits in kind — essentially everything the employer pays or provides, valued at cost or market rates. The EGP 20,000 personal exemption and 11% social insurance come off this total. Exempt: genuine business-expense reimbursements and employer SI contributions. Variable pay (bonuses, profit shares) is taxed in the month paid, which can push that month's withholding into a higher effective rate — the annual reconciliation sorts it out.
Sources & verification
Figures compiled from: Egyptian Tax Authority (ETA) · National Organization for Social Insurance (NOSI).
Last verified: 23 October 2026. This guide is an estimate, not tax advice.