How income tax works in Oman
Oman does not currently tax salaries, wages, freelance income, rent, pensions or investment income through a personal income-tax regime. This remains the position through 31 December 2027 unless the law changes.
Royal Decree 56/2025 brings PIT into force on 1 January 2028. The law targets a natural person whose total annual income exceeds OMR 42,000. Tax is 5% of taxable income, not simply 5% of every riyal received, because permitted deductions, exemptions, costs, losses and treaty relief can matter.
The future regime is broader than salary alone. The Tax Authority’s guidance identifies cash and in-kind income, rent, pensions, self-employment and other sources; a resident is generally identified by more than 183 days in Oman, while non-resident Oman-source income can also be relevant.
Income tax brackets in Oman
| Bracket | Rate | Notes |
|---|---|---|
| Total annual income up to OMR 42,000 | 0% | Future PIT threshold; the law taxes taxable income after the threshold and permitted adjustments |
| Total annual income above OMR 42,000 | 5% | From 1 January 2028, applied to taxable income |
| All personal income through 31 December 2027 | 0% | No personal income-tax regime currently applies |
Tax rates at a glance
- Personal income tax through 2027
- 0%Current
- PIT from 2028
- 5%
- Total-income threshold
- OMR 42,000
- Tax-residence day test
- 183 days
- Employee social protection
- Separate contribution
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesExpatsContractorsHigh earners before 2028Gulf-based founders
Watch out for
- A residence visa is not the same thing as a complete tax analysis. Day counts, Oman-source income, treaty residence and the country you leave can all change the result.
- The OMR 42,000 figure is a total-income threshold. Once the threshold is exceeded, the taxable base is calculated after the deductions and exemptions allowed by the PIT law; it is not a simple 5% charge on gross receipts in every case.
- The Tax Authority says future PIT withholding will apply across government, private and foreign employers operating in Oman. Employers and individuals should expect detailed compliance rules as the executive regulations are published.
- Payroll social protection is separate from income tax. For Omani insured workers, the current listed branches include employee contributions of 8% and employer contributions of 14.5%; the treatment of non-Omani workers depends on the applicable scheme.
Frequently asked questions
Do expats pay income tax in Oman?
Not under a personal income-tax regime through 2027. From 2028, nationality is not the main test: the enacted PIT law applies to natural persons meeting the income and residence or Oman-source rules.
What is the future Oman income-tax rate?
The enacted rate is 5% of taxable income from 1 January 2028 when total annual income exceeds OMR 42,000. Permitted deductions, exemptions, costs, losses and treaty relief can affect the taxable amount.
Is salary the only income covered by Oman PIT?
No. The Tax Authority’s PIT FAQs say the regime is not limited to salary and can include sources such as rent, pensions, self-employment and other income covered by the law.