Egypt Income Tax on Salaries in 2026 — The Complete Guide

If you are employed in Egypt, payroll income tax is withheld from your salary every month. This guide explains exactly how that tax is calculated under the brackets applied in 2026, with worked examples so you know precisely where the gap between your gross salary and your bank transfer goes.

What income is actually taxed?

Tax is not applied to your gross salary directly — it is applied to your taxable income. To get there, two deductions come off your monthly gross first: your employee social insurance contribution (11% of the insurable wage, capped at EGP 16,700/month) and the personal exemption of EGP 20,000 per year (EGP 1,666.67 per month).

The monthly result is multiplied by 12 to get your annual taxable income, which is what the brackets are applied to.

The 2026 income tax brackets

Egypt uses progressive brackets: each slice of your income is taxed at its own rate. Crossing into a higher bracket never moves your whole income to the higher rate — only the part above the threshold.

Up to EGP 40,000/year: 0% (exempt)
EGP 40,001 – 55,000: 10%
EGP 55,001 – 70,000: 15%
EGP 70,001 – 200,000: 20%
EGP 200,001 – 400,000: 22.5%
EGP 400,001 – 1,200,000: 25%
Above EGP 1,200,000: 27.5%

Worked example: EGP 20,000 gross per month

An employee on EGP 20,000 gross: social insurance = 16,700 × 11% = EGP 1,837 (the salary exceeds the insurable-wage cap). Monthly income after insurance and exemption = 20,000 − 1,837 − 1,666.67 = EGP 16,496.33, roughly EGP 197,956 per year.

Applying the brackets — first EGP 40k exempt, then 10%, 15% and 20% on the following slices — gives an annual tax of about EGP 29,341, or roughly EGP 2,445 per month. Add the Law 4.3 deduction (0.05% × 20,000 = EGP 10) and the approximate net is EGP 15,708. You can verify any number instantly with our calculator.

Common misconceptions

Misconception one: that crossing a bracket threshold taxes your entire income at the higher rate. It does not — only the amount above the threshold is taxed at that rate.

Misconception two: forgetting that social insurance is deducted before tax, which shrinks the taxable base. And three: ignoring the EGP 20,000 annual personal exemption, which every employee receives.

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Frequently Asked Questions

Are bonuses and incentives taxable in Egypt?⌄

Yes. Bonuses, incentives and allowances are part of the payroll tax base and are taxed with the same brackets — a large bonus can push part of your income into a higher bracket.

When is income tax deducted from my salary?⌄

Your employer is required to withhold the tax at source every month and remit it to the Egyptian Tax Authority, so your salary arrives net of tax automatically.

Is salary tax different between private and public sector?⌄

The rules and brackets are the same for all employees subject to payroll tax; practical differences come from special allowances or exemptions at specific entities.