How to Calculate Your Egyptian Salary Tax by Hand (Step by Step)

You do not need software to check your payslip. Egyptian salary tax follows seven short steps that need only a calculator. This guide walks through each one, gives a shortcut table so you do not have to add slices every time, and ends with two complete examples you can copy.

What you need before you start

Take your monthly gross salary (the base salary that is insured), plus any variable pay such as commission, overtime, cost of living or transportation. If you only know your net salary, use the Net to Gross mode in the calculator instead, because reversing the steps by hand needs trial and error.

Assumptions in this guide: you are insured, you have a full year at the same salary, and the 2026 slices apply. Check the Methodology page for every constant used.

Step 1 — Employee social insurance

Multiply your insurable wage by 11%, but never use more than 16,700 EGP as the insurable wage. So the highest monthly deduction is 16,700 × 11% = 1,837 EGP. Variable pay is not part of the insurable wage in this model.

Step 2 — Monthly taxable income

Monthly taxable income = base salary − social insurance − 1,666.67 + variable pay. The 1,666.67 is the personal exemption of 20,000 EGP per year divided by 12.

Step 3 — Convert to annual taxable income

Multiply the monthly taxable income by 12. This annual figure, call it F, is the number the tax slices are applied to.

Step 4 — Apply the slices (progressive)

Each part of F is taxed at the rate of the slice it falls into. Only the part above a slice boundary is taxed at the higher rate, never the whole amount. The shortcut below gives you a fixed amount for all the slices you have fully passed, so you only need to compute the last one:

Tax = fixed amount + (F − slice start) × rate

F up to 40,000: tax = 0
F from 40,000 to 55,000: tax = (F − 40,000) × 10%
F from 55,000 to 70,000: tax = 1,500 + (F − 55,000) × 15%
F from 70,000 to 200,000: tax = 3,750 + (F − 70,000) × 20%
F from 200,000 to 400,000: tax = 29,750 + (F − 200,000) × 22.5%
F from 400,000 up to 600,000: tax = 74,750 + (F − 400,000) × 25%

Step 5 — Monthly tax

Divide the annual tax by 12. This is the income tax deducted from your payslip each month.

Step 6 — Law 4.3 deduction

Multiply your total monthly gross by 0.05%. For a 20,000 EGP salary this is 10 EGP.

Step 7 — Net salary

Net = total gross − social insurance − monthly income tax − Law 4.3 deduction.

Worked example 1: 20,000 EGP gross

Step 1: insurable wage is capped at 16,700, so insurance = 16,700 × 11% = 1,837.

Step 2: 20,000 − 1,837 − 1,666.67 = 16,496.33 per month.

Step 3: 16,496.33 × 12 = 197,956 per year.

Step 4: F falls in the 70,000–200,000 slice, so tax = 3,750 + (197,956 − 70,000) × 20% = 3,750 + 25,591.20 = 29,341.20.

Step 5: 29,341.20 ÷ 12 = 2,445.10 per month.

Step 6: 20,000 × 0.05% = 10.

Step 7: 20,000 − 1,837 − 2,445.10 − 10 = 15,707.90 net per month.

Worked example 2: 8,000 EGP gross

Step 1: 8,000 × 11% = 880.

Step 2: 8,000 − 880 − 1,666.67 = 5,453.33 per month.

Step 3: 5,453.33 × 12 = 65,440 per year.

Step 4: F falls in the 55,000–70,000 slice, so tax = 1,500 + (65,440 − 55,000) × 15% = 1,500 + 1,566 = 3,066.

Step 5: 3,066 ÷ 12 = 255.50 per month.

Step 6: 8,000 × 0.05% = 4.

Step 7: 8,000 − 880 − 255.50 − 4 = 6,860.50 net per month.

Adding variable pay

Commission, overtime, cost of living and transportation are added in Step 2 because they are fully taxable, but they are left out of Step 1 because they are not insured. Their tax is the extra tax they cause on top of your base salary, which is why a bonus is taxed at your highest slice and feels heavily taxed.

Incomes above 600,000 EGP per year

Above 600,000 EGP of annual taxable income the calculation also includes a step adjustment that withdraws lower-slice benefits as income rises. Use the calculator for these salaries. The tax breakdown in the results shows the adjustment on its own line.

Common mistakes

These cause most mismatches with payslips:

Taxing the whole salary at the highest slice instead of slice by slice.
Forgetting to subtract the 1,666.67 monthly exemption.
Calculating insurance on more than 16,700 EGP.
Including variable pay in the insurable wage when your employer does not insure it.
Forgetting the Law 4.3 deduction.
Comparing with a payslip that includes other items such as loans, medical insurance or stamp duty.

Check your answer

Enter your gross salary in the calculator and click Details next to Income Tax. It shows the same steps and the tax per slice so you can compare line by line.

Open the salary calculator →

Frequently Asked Questions

Why is my tax lower than the highest rate times my salary?⌄

Because the tax is progressive. Only the part of your annual taxable income inside each slice is taxed at that slice's rate, and the first 40,000 EGP is taxed at 0%.

Why do I divide by 12 at the end?⌄

The slices are annual, so the tax is calculated for the year first, then spread into 12 equal monthly deductions.

My payslip differs by a few pounds. Why?⌄

Usually rounding, a different insurable wage, a different month length convention in your payroll, or an extra item on your payslip. Compare each step to find where it starts to differ.