Tax system in Jordan
Jordan taxes income incurred in or from Jordan and applies progressive personal income tax rates, plus a 1% national contribution tax on individual taxable income above JOD 200,000.
Companies are taxed by sector. The standard corporate income tax rate is 20%, but banks pay 35% and several regulated sectors pay 24% or 10% on specific income streams. Jordan also has 16% general sales tax, payroll social security, municipal property taxes and excise taxes.
Tax rates at a glance
- Income tax
- 5% - 30%Progressive
- Wealth tax
- 0%
- Inheritance tax
- 0%
- Capital gains tax
- 0% generally
- Corporate tax
- 20% / 35%
- Dividend tax
- 0% WHT
- VAT / sales tax
- 16%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Business ownersRegional operatorsSalaried expatsInvestorsHigh earners
Watch out for
- Jordan is not a low-tax jurisdiction. A 16% sales tax, sector-specific corporate rates, WHT on certain payments and payroll social security can change the real tax cost quickly.
- The 1% national contribution tax applies above JOD 200,000 for individuals and at 1% to 7% for companies depending on sector.
- I did not find an enacted 2026 headline rate change in the official and Big Four sources reviewed, so the main planning work is still sector classification, withholding and payroll compliance.
Frequently asked questions
Is Jordan a high-tax country?
Jordan is not a zero-tax jurisdiction. Individuals can face progressive income tax up to 30% plus a 1% national contribution tax above JOD 200,000, and companies face sector-based corporate taxes and 16% sales tax.
Does Jordan have wealth tax or inheritance tax?
No. Jordan does not have a net wealth tax or a specific inheritance, estate or gift tax under the Income Tax Law.
What should founders watch first in Jordan?
Founders usually need to model the correct corporate sector rate, VAT or sales tax exposure, payroll social security, withholding taxes on services and the filing deadline at the end of the fourth month after year-end.