How Egypt Income Tax Works in 2026Egypt 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:Income Tax: 0-27.5% progressive rates based on annual income (after EGP 20,000 exemption)Social Insurance: 11% employee + 18.75% employer (total 29.75%), capped at EGP 200,400/year max salaryHealth Insurance: 1% employee + 3.25% employer (separate from social insurance)Tax Year: January 1 - December 31Egypt's remittance revolution (2024-2025):Egypt's 14 million-strong diaspora (largest in Arab world) sent a record $41.5 billion in remittances in 2025—a 40.5% surge from 2024's $29.6B. This explosion followed the Central Bank of Egypt's March 2024 shock therapy: 50%+ currency devaluation (EGP crashed from ~31 to ~50 per USD) plus 6% interest rate hike. The reforms destroyed the black market premium, forcing diaspora to use formal banking channels instead of hawala (informal money transfer). Remittances are now Egypt's 3rd-largest foreign currency source after exports and FDI.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 (commercial/industrial/professional center in Egypt) pay tax on worldwide income. 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.
This hub links to every Egypt tax guide and calculator on CountryTaxCalc — covering income tax rates, expat obligations, and tools to calculate your take-home pay.
Detailed Egypt tax guides on CountryTaxCalc:
Egypt's income tax uses 7 income tax brackets (0-27.5%) with EGP 20,000 annual exemption and 11% social insurance contribution (29.75% total with employer). Use the calculator to estimate your take-home pay after income tax:
| Income | Rate |
|---|---|
| EGP 0 - 40,000 | 0% |
| EGP 40,001 - 55,000 | 10% |
| EGP 55,001 - 70,000 | 15% |
| EGP 70,001 - 200,000 | 20% |
| EGP 200,001 - 400,000 | 22.5% |
| EGP 400,001 - 1,200,000 | 25% |
| Above EGP 1,200,000 | 27.5% |
Egypt tax connects with these hubs on CountryTaxCalc:
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
★ 4.3 Trustpilot · 287,413 reviews
Transfer money to or from Egypt at the real exchange rate. Save up to 5x vs banks on international transfers. Hold multiple currencies with a Wise account.
⚠ For currency exchange only — not a bank account replacement.
Send Money To/From Egypt →★ 4.8 Trustpilot · 1,625 reviews
US citizen living in Egypt? You still file a US federal return. Greenback's CPAs handle US expat tax from anywhere in the world.
⚠ Not the cheapest option — best for complex situations and expats who want a dedicated CPA.
US Citizens: File Your US Taxes →Interested in reaching this audience? Advertise on CountryTaxCalc →