How income tax works in Jordan
Jordan income tax applies to income incurred in or from Jordan. The personal income tax rate schedule is progressive and runs from 5% on the first JOD 5,000 to 30% on income above JOD 1,000,000, with a 25% bracket between JOD 20,001 and JOD 1,000,000.
Employment income, including salaries, wages, allowances, bonuses and in-kind benefits such as housing or boarding, is taxable. The first JOD 2,500 of monthly pension salary paid by a resident person is exempt, and individuals with full or partial disabilities have a JOD 2,000 annual exemption.
Jordan treats an individual as resident for tax purposes if they are physically present for at least 183 days in the year. Married taxpayers can file jointly, and individual tax returns are due by 30 April following the end of the tax year.
Income tax brackets in Jordan
| Bracket | Rate | Notes |
|---|---|---|
| First JOD 5,000 | 5% | Starting bracket for taxable income. |
| JOD 5,001 to JOD 10,000 | 10% | Second progressive band. |
| JOD 10,001 to JOD 15,000 | 15% | Third progressive band. |
| JOD 15,001 to JOD 20,000 | 20% | Fourth progressive band. |
| JOD 20,001 to JOD 1,000,000 | 25% | Applies before the top band. |
| Over JOD 1,000,000 | 30% | Top marginal rate. |
Tax rates at a glance
- First bracket
- 5%
- Second bracket
- 10%
- Third bracket
- 15%
- Fourth bracket
- 20%
- Fifth bracket
- 25%
- Top bracket
- 30%
- National contribution tax
- 1%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Salaried expatsBusiness ownersConsultantsHigh earnersRemote workers
Watch out for
- Jordan tax returns are due by 30 April, and late payment can trigger a 0.4% weekly delay fine.
- Business income over JOD 1 million in the prior period can trigger two advance payments during the year.
- { "Payroll still matters even though this is an income tax page": "social security rates are 14.25% for employers and 7.5% for employees." }
Frequently asked questions
What is the income tax rate in Jordan?
Jordan uses progressive personal income tax rates from 5% to 30%, plus a 1% national contribution tax on annual taxable income above JOD 200,000.
Do expats pay income tax in Jordan?
Yes, if they have Jordan-source or Jordan-incurred taxable income. Salaries, wages, allowances and many forms of business or investment income can be taxable in Jordan.
When is the Jordan tax return due?
Individual tax returns are due by 30 April after the end of the tax year, with payment due on the same deadline.