How income tax works in Lebanon
Lebanon does not use one single flat personal income tax. Income is taxed by source. Salaries and wages are taxed at progressive payroll rates, business profits for sole proprietors and general partnerships are taxed separately, and moveable capital income such as dividends and interest has its own withholding rules.
Salary tax is progressive from 2% to 25%. The 2024 Budget Law widened the salary brackets to LBP 360 million, 900 million, 1.8 billion, 3.6 billion, 7.2 billion and 13.5 billion, with payroll tax declared by the employer on a quarterly basis and reconciled annually.
Employers also need to budget for NSSF contributions. Current guidance puts employer social security at 8% for sickness and maternity, 6% for family allowances and 5% for end-of-service indemnity, while employees contribute 3% for medical coverage.
Income tax brackets in Lebanon
| Bracket | Rate | Notes |
|---|---|---|
| Up to LBP 360 million | 2% | Salary tax bracket under the 2024 Budget Law. |
| LBP 360 million to LBP 900 million | 4% | |
| LBP 900 million to LBP 1.8 billion | 7% | |
| LBP 1.8 billion to LBP 3.6 billion | 11% | |
| LBP 3.6 billion to LBP 7.2 billion | 15% | |
| LBP 7.2 billion to LBP 13.5 billion | 20% | |
| Above LBP 13.5 billion | 25% | Top salary bracket. |
Tax rates at a glance
- Salary tax
- 2% to 25%Progressive
- Business profits tax
- 4% to 25%
- Moveable capital tax
- 10%
- Interest WHT
- 7%
- Non-resident goods WHT
- 3.4%
- Non-resident services WHT
- 8.5%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesContractorsFoundersExpatsLocal business owners
Watch out for
- If you are paid in foreign currency, the taxable amount can depend on current Ministry of Finance or NSSF conversion guidance, which has changed several times.
- Foreign movable capital income can also create filing obligations for Lebanese residents, even when the income was earned abroad.
- Payroll compliance is employer-led. If your employer does not withhold correctly, the tax and penalty risk can still come back to the business.
Frequently asked questions
What is the personal income tax rate in Lebanon?
Salaries and wages are taxed progressively from 2% to 25%, depending on annual taxable income after family allowances and other permitted deductions.
Do residents pay tax on foreign income?
Lebanese residents can have declaration and payment obligations for foreign movable capital income and other foreign-source receipts, depending on how the income is received or transferred.
Do employees have to file in Lebanon?
In most payroll cases the employer withholds and files the tax, but self-employed people, partners and residents with foreign income usually have direct filing obligations.