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Country Hub · Azerbaijan · 2026

Azerbaijan

14% PIT up to AZN 30,000/year · 25% above AZN 30,000 · 3% employee social contribution · 0.5% compulsory medical insurance · Corporate tax 20% · VAT 18%

14% on annual income up to AZN 30,000; 25% on income above AZN 30,000 (2026)
Tax Rate Range
3% on employment income above AZN 8,000/year (i.e., above minimum wage threshold)
Employee Social Contributions
0.5% employee contribution to the mandatory health insurance fund
Compulsory Medical Insurance
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Azerbaijan Tax Facts

— 2026
Tax Rate Range
14% on annual income up to AZN 30,000; 25% on income above AZN 30,000 (2026)
Employee Social Contributions
3% on employment income above AZN 8,000/year (i.e., above minimum wage threshold)
Compulsory Medical Insurance
0.5% employee contribution to the mandatory health insurance fund
Effective Rate (AZN 36k salary)
Approximately 18–19% combined effective rate for an employee on AZN 36,000/year
Capital Gains Tax
Gains from securities and real estate are treated as ordinary income and taxed at the standard PIT rates
Corporate Income Tax
20% standard rate
VAT
18% standard rate
Simplified Tax Regime
Individual entrepreneurs and small businesses may qualify for simplified tax at 2–4% of turnover depending on activity
Tax Year
1 January – 31 December

Quick Country Comparison

— at AZN 36,000
Country Take-home Eff. Rate vs Azerbaijan
Azerbaijan
~AZN 29,160 ~19% —
Georgia (Country)
~AZN 28,800 ~20% −~AZN 360
Turkey
~AZN 27,000 ~25% −~AZN 2,160
Armenia
~AZN 27,900 ~22.5% −~AZN 1,260

Comparison based on AZN 36,000/year gross salary (~$21,000 USD). Azerbaijan: 14% on first AZN 30k + 25% on AZN 6k + 3% social + 0.5% medical ≈ 19% effective. Georgia (country): 20% flat. Turkey: progressive PIT up to 40% — higher effective rates at comparable income. Armenia: 20% flat + 2.5% social. Illustrative — not tax advice.

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Comparison Guides

Comparison Guides

Azerbaijan is often compared to Georgia and Armenia as a Caucasus destination. Its two-tier tax system gives it a competitive rate at lower income levels, while Turkey’s higher progressive rates make Baku look attractive to professionals earning moderate incomes.

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Salary Guides

Salary Guides

Azerbaijan uses the Azerbaijani Manat (AZN). The State Tax Service of Azerbaijan administers income tax, social contributions, and VAT. The PIT structure is two-tiered: 14% applies to annual income up to AZN 30,000, and 25% applies to the portion above that threshold. Employees additionally pay 3% social contribution (on income above the minimum wage threshold) and 0.5% compulsory medical insurance. Baku is a significant expat hub driven by the oil and gas sector, with SOCAR and BP among the largest employers.

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Moving from Azerbaijan

Moving from Azerbaijan

Baku is the South Caucasus’s most cosmopolitan city, with a well-established expatriate community centred on the energy sector. SOCAR (Azerbaijan’s state oil company), BP, TotalEnergies, and other major operators maintain significant presences. Azerbaijan’s non-oil sector is growing — Baku hosted COP29 in November 2024, raising the country’s international profile. Work visas are employer-sponsored; a VIZA electronic visa is available for short stays from over 95 countries.

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Last Updated: June 2026 · Daniel · CountryTaxCalc