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UAE Tax Guide Hub 2026: Income Tax, Rates & Calculator

Daniel · CountryTaxCalc Updated June 2026
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KEY INSIGHT
UAE take-home = 100% of gross salary. No income tax, no capital gains tax, no inheritance tax. $100,000 USD gross = $100,000 net. Compared to UK (~$67k net) or California (~$68k net), UAE saves $30,000-35,000 per year. Important non-tax items: 5% VAT on purchases, end-of-service gratuity (21-30 days' basic salary per year of service, paid on departure), and 9% corporate tax for businesses over AED 375,000 profit. Social security only for UAE nationals (5% employee). No individual tax return required.
At a glance

Key Facts

Personal Income Tax
0% — no income tax for individuals
Capital Gains Tax
0% — none
Inheritance / Wealth Tax
0% — none
Introduction

UAE has no personal income tax — for any resident, regardless of nationality. Salary, bonuses, rental income, capital gains, dividends, and interest are all completely tax-free for individuals. This was confirmed by the UAE Federal Tax Authority and has not changed with the 2023 corporate tax reform. On a $100,000 USD salary: take-home = $100,000. The same salary in the UK yields ~$67,000 after income tax and NI. In California: ~$68,000. The UAE advantage at $100k is worth roughly $30,000–35,000 per year compared to a high-tax Western country. Key things to understand beyond the zero tax headline: (1) 5% VAT applies on most goods and services (introduced 2018). (2) Corporate tax of 9% was introduced in June 2023 for businesses with annual profits above AED 375,000 — individuals' employment and investment income remain exempt. (3) End-of-service gratuity (EOSB): all UAE employees who complete one year of service are entitled to a gratuity payment on departure — 21 days of basic salary per year for the first 5 years, then 30 days per year. This is a significant deferred benefit often overlooked when comparing UAE to Western compensation packages. (4) Social security applies only to UAE nationals: 5% employee + 12.5% employer contribution (federal rate). Expats and non-GCC nationals pay nothing.

This hub links to every UAE tax guide and calculator on CountryTaxCalc — covering income tax rates, expat obligations, and tools to calculate your take-home pay.

Section 01

UAE Tax Guides

Detailed UAE tax guides on CountryTaxCalc:

Section 02

UAE Income Tax Calculator

UAE applies No personal income tax for residents or expats. Zero tax on employment income, capital gains, dividends, and interest for individuals.. Use the calculator to estimate your take-home pay after income tax:

Section 03

Related Hubs

UAE tax connects with these hubs on CountryTaxCalc:

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FAQ

Frequently Asked Questions

Does the UAE have any personal income tax in 2026?

No. There is no personal income tax in the UAE for 2026, confirmed by the UAE Federal Tax Authority: 'There is currently no personal income tax in the United Arab Emirates. As such, there are no individual tax registration or reporting obligations.' This covers all residents regardless of nationality — salary, bonuses, rental income, capital gains, dividends, and interest are all tax-free for individuals. The 2023 corporate tax reform (9% on business profits over AED 375,000) did not affect personal employment or investment income.

What is the UAE end-of-service gratuity?

End-of-service gratuity (EOSB) is a mandatory benefit under UAE Labour Law that applies to all employees who complete one year of service: 21 calendar days of basic salary per year of service for the first 5 years; 30 calendar days of basic salary per year for each year beyond 5. The total is capped at 2 years' total salary. Gratuity is calculated on basic salary only (excluding allowances, bonuses, and overtime). For example: an employee earning AED 20,000/month basic salary who completes 3 years receives: 21 days × (20,000/30) × 3 = AED 42,000. DIFC employees use a different scheme (DEWS — employer contributes 5.83%/month for first 5 years, 8.33% thereafter). ADGM uses its own equivalent. Gratuity is paid by the employer on termination, resignation, or expiry of contract.

Do expats pay any social security in UAE?

No. Non-GCC expatriates pay zero social security in the UAE — neither employee nor employer contributions apply. UAE national employees are subject to pension contributions: 5% employee + 12.5% employer at the federal level, with Abu Dhabi nationals contributing to GPSSA (General Pension and Social Security Authority) at slightly different rates (employer 15% + government 6%). GCC nationals follow their home country's social insurance rules. This makes UAE exceptionally competitive for expat compensation packages — the full salary is take-home, and the employer's social security saving also makes UAE-based staff cheaper to employ than equivalents in Europe.

What is the UAE corporate tax — does it affect my salary?

The UAE corporate tax (9% on business profits above AED 375,000, introduced June 2023) does not affect employment income. If you receive a salary from a UAE employer, your take-home remains 100% of gross — the corporate tax is paid by the employing company on its profits, not deducted from wages. The corporate tax only becomes relevant if you are running your own business in the UAE. Free zone companies meeting qualifying conditions (no mainland business activities) continue to pay 0% corporate tax. The first AED 375,000 of business profits remains tax-free for all businesses.
Disclaimer:This hub provides general information about UAE taxation for educational purposes only. Tax rules change frequently and individual circumstances vary. Always verify current rates and rules with the official UAE tax authority or a qualified local tax adviser. This is not tax or legal advice.
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