How income tax works in Egypt
Egypt taxes residents on local income plus foreign income where Egypt is the commercial centre. A permanent home, 183 days in twelve months, or treasury-paid duties abroad each trigger residence.
Bands run 0% to EGP 40,000, 10% to EGP 55,000, 15% to EGP 70,000, 20% to EGP 200,000, 22.5% to EGP 400,000, 25% to EGP 1.2 million and 27.5% above, after the EGP 20,000 exemption. Lower bands withdraw progressively for very high incomes.
Social insurance takes 11% from employees and 18.75% from employers on insurable wages between EGP 2,700 and 16,700 monthly in 2026. Employers withhold monthly with yearly settlement.
Income tax brackets in Egypt
| Bracket | Rate | Notes |
|---|---|---|
| Up to EGP 40,000 | 0% | Includes personal exemption |
| EGP 40,001 to EGP 55,000 | 10% | Lower bands withdraw at very high incomes |
| EGP 55,001 to EGP 70,000 | 15% | Lower bands withdraw at very high incomes |
| EGP 70,001 to EGP 200,000 | 20% | Net taxable income |
| EGP 200,001 to EGP 400,000 | 22.5% | Net taxable income |
| EGP 400,001 to EGP 1,200,000 | 25% | Net taxable income |
| EGP 1,200,001 and above | 27.5% | Top marginal rate |
Tax rates at a glance
- Zero band
- EGP 40,000With exemption
- Lower rates
- 10% / 15%
- Middle rates
- 20% / 22.5%
- Upper rate
- 25%
- Top rate
- 27.50%
- Social cap monthly
- EGP 16,700
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesExpatsContractorsHigh earnersCross-border workers
Watch out for
- Band withdrawal complicates top modelling. Very high incomes lose the lower slices progressively — confirm the step table with the authority before publishing calculators.
- Social caps rise yearly by law. The EGP 16,700 ceiling moves about 15% annually, so multi-year offers need indexation.
- Non-residents pay on Egyptian work wherever paid. Short assignments should check treaty days before assuming home-country shelter.
- Minimum-wage and health-levy layers add up. The EGP 7,000 private floor plus health contributions sit outside the income-tax bands.
Frequently asked questions
Do expats pay income tax in Egypt?
Yes, if resident or working in Egypt. Residents add foreign income where Egypt is their business centre, while short stayers pay on Egyptian work.
What is the top income tax rate in Egypt?
27.5% above EGP 1.2 million, before 11% employee social insurance to the monthly cap.
How much is tax-free in Egypt?
EGP 20,000 of personal exemption plus the zero band to EGP 40,000, with lower bands withdrawing at very high incomes.
Is salary taxed differently from investment income?
Listed-share gains are exempt since 2026, while unlisted gains follow the same bands and dividends face 10% or 5% withholding.