Egypt operates a progressive income tax system with 7 tax brackets ranging from 0% to 27.5% under Income Tax Law No. 91 of 2005. The system includes an annual exemption of EGP 20,000 (≈$400), which applies to both residents and non-residents.
Key components of Egypt's tax system:
Note on the brackets and our figures: the 0-27.5% schedule above applies to net taxable income up to EGP 600,000; above that, Law 7 of 2024 withdraws the lower-rate slices step by step. The schedule comes from secondary reproductions of the law (the Official Gazette text could not be independently confirmed), so check the current ETA tables. Stamp duty and health-insurance contributions are not included in our figures. Dollar figures use about 50 EGP per USD (a secondary-source reference rate of 5 October 2026 is about 52).
Egypt's remittance revolution (2024-2025):
Egyptians working abroad sent a record $41.5 billion in remittances in 2025—a 40.5% surge from 2024's $29.6B (Central Bank of Egypt figures as reported). This surge followed the Central Bank of Egypt's March 2024 reforms: the pound was floated and lost over a third of its dollar value (EGP moved from ~31 to ~50 per USD) alongside a 6-percentage-point interest rate hike. The reforms closed the gap between the official and parallel exchange rates, which encouraged more transfers through formal banking channels instead of informal ones such as hawala. Remittances are now among Egypt's largest and most stable sources of foreign currency.
Suez Canal Economic Zone (SCZone) boom:
SCZone attracted $4.6 billion in investments over 18 months (2024-2025), targeting logistics, green hydrogen, and manufacturing. Tax benefits: 50% corporate tax reduction for 7 years, 0% customs on materials, 0% VAT on procurement, full profit repatriation. However, employee income tax (PAYE) is still 0-27.5%—SCZone incentives help companies, not workers' salaries. Foreign employees capped at 10% of workforce.
Who pays tax in Egypt: Residents pay tax on income earned in Egypt, and on income earned abroad if their centre of commercial, industrial or professional activities is in Egypt. Non-residents pay tax on Egypt-source income only. Both get EGP 20,000 annual exemption.
Official source: Egyptian Tax Authority (ETA) and PWC Egypt Tax Summary.
Note: These are marginal rates — you only pay the higher rate on income within each bracket.
Source: Egyptian Tax Authority (ETA)
CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools.Learn more about our affiliate partnerships
★ 4.8Trustpilot · 1,625 reviews
US citizen living in Egypt? Get expert help with your US tax filing from abroad.
⚠Not the cheapest option — best for complex situations and expats who want a dedicated CPA.
US Citizens: File Your US Taxes →★ 4.7Trustpilot · 8,728 reviews
Working as a contractor in Egypt? Deel handles compliance, payroll, and international payments.
⚠For employers and companies only — not for individual freelancers or employees.
Get Paid as a Contractor →Interested in reaching this audience? Advertise on CountryTaxCalc →
Egypt uses a progressive income tax system with 7 brackets from 0% to 27.5% under Income Tax Law No. 91 of 2005. Everyone gets an EGP 20,000 annual exemption (both residents and non-residents). Net income up to EGP 40,000/year (after the exemption and employee social insurance) is tax-free, then rates rise progressively. Social insurance (11% employee) is deducted from gross salary and also reduces the income that is taxed. Employers withhold both income tax and social insurance monthly. The Egyptian Tax Authority (ETA) administers the system. Tax year runs January 1 - December 31.
The EGP 20,000 annual salary tax exemption (≈$400 USD) is deducted from gross income BEFORE calculating tax. Example: EGP 100,000 gross salary minus EGP 11,000 employee social insurance minus the EGP 20,000 exemption = EGP 69,000 taxable income. The first EGP 40,000 is tax-free (0% bracket), then 10% on EGP 15,000 (EGP 1,500) and 15% on EGP 14,000 (EGP 2,100), so income tax is EGP 3,600. This exemption applies to BOTH residents and non-residents—unusual compared to most countries that reserve exemptions for residents only. Updated by legislator in recent years to EGP 20,000 from previous lower amounts.
Egypt's social insurance is mandatory: 11% employee contribution + 18.75% employer contribution = 29.75% total. CRITICAL: contributions are CAPPED—calculated on maximum EGP 16,700/month salary (EGP 200,400/year) as of January 2026. These caps increase 15% annually through 2027 (started 2021). Example: EGP 20,000/month gross salary pays 11% on EGP 16,700 = EGP 1,837 employee contribution (not 11% of full EGP 20,000). Minimum salary for contributions: EGP 2,700/month. Social insurance covers pensions, unemployment, sickness, work injury. Health insurance (1% employee + 3.25% employer) is separate and uncapped.
Egypt's diaspora remittances rose from $29.6B (2024) to $41.5B (2025), according to Central Bank of Egypt figures as reported. The increase followed the CBE's March 2024 reforms: (1) the pound was floated and lost over a third of its dollar value (EGP moved from ~31 to ~50 per USD), closing the gap between the official and parallel exchange rates, (2) a 6-percentage-point interest rate hike, making formal banking more attractive, and (3) a push to bring informal transfers (hawala) into the banking system. With the black-market premium gone, there was less reason for senders to use unofficial channels. The weaker EGP also made Egyptian assets cheaper for diaspora (real estate, investments), supporting formal transfers. Many Egyptians abroad earn in USD, EUR or Gulf currencies, which go further against the weaker EGP.
Yes, expats in Egypt pay income tax based on residency. Residents pay tax on income earned in Egypt, and on income earned abroad if their centre of commercial, industrial or professional activities is in Egypt; residency generally follows a normal place of residence in Egypt or more than 183 days a year there. Non-residents pay tax ONLY on Egypt-source income (such as pay for work performed in Egypt) at the same 0-27.5% progressive rates. Per PwC, the EGP 20,000 annual exemption is given to both residents and non-residents, though other sources describe it as a resident allowance, so confirm with the ETA. Social insurance applies to Egyptian citizens and most foreign nationals working in Egypt (11% employee). Foreigners working in Suez Canal Economic Zone (SCZone) benefit from 5-year residency permits but still pay standard income tax on salaries. No special tax rates for expats—same progressive system as locals.
SCZone offers CORPORATE tax incentives, NOT employee salary tax breaks: (1) 50% reduction in 22.5% corporate tax rate for first 7 years, (2) 0% customs tax on materials/tools, (3) 0% VAT on procurement (domestic or international), (4) Full profit repatriation, (5) 5-year residency permits for foreign investors (renewable). However, EMPLOYEE income tax remains 0-27.5%—SCZone incentives help companies, not workers' take-home pay. Labor-intensive projects using local components get partial reimbursement of employer's social insurance contributions (18.75% share). Foreign employees capped at 10% of workforce. SCZone attracted $4.6B investments in 2024-2025.
Egypt's private-sector minimum wage is EGP 7,000/month (≈$140 USD) since March 2025, set by the National Wages Council (the public-sector floor rises to EGP 8,000 from July 2026). Annual minimum: EGP 84,000/year. Tax implications: EGP 84,000 gross minus EGP 9,240 employee social insurance (11%, within the EGP 200,400 cap) minus the EGP 20,000 exemption = EGP 54,760 taxable. First EGP 40,000 is tax-free (0%), then 10% on EGP 14,760 = EGP 1,476 income tax. Total deductions with social insurance: EGP 10,716 (12.8%). Net take-home: EGP 73,284/year (EGP 6,107/month). Minimum wage workers pay relatively LOW tax due to generous 0% bracket and exemption.
The March 2024 EGP devaluation (from ~31 to ~50+ per USD) CRUSHED real purchasing power for salaried workers. Example: EGP 120,000/year salary was worth $3,870 USD in early 2024, but only $2,400 USD by late 2024 (38% loss in dollar terms). However, tax brackets and exemptions didn't adjust—still EGP 20,000 exemption, same EGP brackets. This means workers pay the SAME nominal tax on salaries worth LESS in real terms. Winners: diaspora earning USD/EUR sending remittances home (money goes 60%+ further), real estate buyers with foreign currency. Losers: local salaried workers, especially public sector employees with fixed EGP salaries.
Yes, but pay for work you perform while in Egypt is generally Egypt-source income taxed at 0-27.5%, even if your employer is a US company. Foreign income earned outside Egypt is taxed only if you are resident and your centre of commercial, industrial or professional activities is in Egypt. If you are non-resident and work outside Egypt, a US employer's salary is not Egypt-source, so there is no Egyptian tax. US citizens also owe US taxes—use Foreign Earned Income Exclusion (FEIE, up to $132,900 for 2026) or Foreign Tax Credit to avoid double taxation. Egypt-US tax treaty exists (1980 treaty, still valid) to prevent double taxation. Register with Egyptian Tax Authority if resident. Internet in Cairo/Alexandria is reliable (fiber/4G), making remote work feasible.
Egypt's main deduction is the EGP 20,000 annual exemption (automatic, deducted from gross income before tax calculation). The employee's 11% social insurance contribution is deducted from the income that is taxed, alongside the exemption. Other deductions: life and health insurance premiums, pension-entitlement premiums and employee contributions to private insurance funds, together capped at the lower of 15% of net income or EGP 10,000 a year, and donations to registered charities (up to 10% of net income). Housing allowances, transport allowances, and meal allowances provided by employers are generally taxable unless specifically exempted by law. Egypt's tax code offers fewer deductions than Western countries—most workers claim only the EGP 20,000 exemption.
Effective income tax rates vary significantly. EGP 100,000/year (≈$2,000): 3.6% effective income tax, ~14.6% total with social insurance. EGP 200,000/year (≈$4,000): 10.7% effective income tax, ~21.7% total. EGP 500,000/year (≈$10,000): 17.8% effective income tax, ~22.3% total (social capped at EGP 200,400 = EGP 22,044 max). Egypt's social insurance cap means high earners pay LOWER social insurance percentage than middle earners. Median Cairo salary is EGP 100,000-200,000/year, so most workers pay about 15-22% total deductions. Egypt's rates are LOWER than most European countries (30-45% effective) but HIGHER than Gulf states (0-10% effective).
For EMPLOYEES with single employer: employer withholds income tax and social insurance monthly—no annual filing required UNLESS you have other income sources (rental, business, investments). Self-employed and business owners must file annual returns by March 31 of following year. Filing method: online through Egyptian Tax Authority (ETA) portal (https://www.eta.gov.eg/) or paper submission at tax office. Employees with multiple jobs or foreign income must file and reconcile. Keep monthly payslips and annual tax certificate from employer. Late filing and late payment attract penalties and interest, so confirm current rates with the ETA. Egypt transitioned to e-filing in 2020-2021, though some taxpayers still file paper returns.
Cairo is one of Africa's most affordable capitals, but purchasing power eroded 40%+ after 2024 devaluation. After income tax and social insurance, net take-home from EGP 150,000/year gross is ~EGP 121,050 (≈$2,421/year or $202/month at about 50 EGP per USD). Cairo living costs: 1-bed apartment EGP 4,000-12,000/month (Zamalek/Maadi vs Nasr City), food ~EGP 3,000-6,000, transport ~EGP 500-1,500 (metro + taxi). EGP 150,000/year gross = tight budget for single person. EGP 300,000+ gross = comfortable middle-class. Many companies provide housing/transport allowances for expats, which can be negotiated as tax-efficient employer-provided benefits.
Egypt offers LIMITED sector-specific income tax incentives. Tech startups can benefit from: (1) Technology Innovation and Entrepreneurship Centers (TIEC) grants and support (non-taxable), (2) Exemption from stamp duty on certain transactions, (3) Access to subsidized office space in Smart Villages. However, employee salaries are taxed at standard 0-27.5% rates—no special PAYE breaks for tech workers. Some companies negotiate gross-up arrangements to offset tax burden for high-skill workers. Egypt's growing tech ecosystem (Cairo, Alexandria Smart Villages) attracts talent, but tax structure doesn't differentiate by sector. SCZone offers corporate tax reduction, but only for manufacturing/logistics, not tech services.
Egyptian social insurance contributions can be refunded or transferred when leaving Egypt permanently. Options: (1) Lump-sum refund of employee's 11% contributions (employer's 18.75% stays with fund), (2) Transfer to another country's social security system if bilateral agreement exists (Egypt has agreements with some Arab League countries), (3) Keep contributions and claim pension when reaching retirement age (60 for men, typically). Process: Apply at National Organization for Social Insurance (NOSI) office with passport, employment termination letter, residence proof in destination country, bank details. Processing takes 2-4 months. Many expats lose contributions by not claiming when leaving—track your contributions via NOSI online portal.
Effective rates, what the headline hides, 111+ countries. Every two weeks, free.
Bi-weekly. No spam. Unsubscribe in one click.
Last Updated: October 2026
Verified By: Daniel · CountryTaxCalc
Contact: For corrections or questions, visit our contact page.
Last Updated: October 2026