Ethiopian Salary Calculator
Ethiopian Salary Calculator
How to use the salary calculator
Find out how much money you will receive after taxes and tax deductions from your salary, including pension contributions and tax-free allowances. Easily calculate your Ethiopian salary by inputting your gross salary into the designated field labeled "Gross Amount" and clicking the calculate button. Your net salary or demoz with all tax breakdown will be shown in a table.
Tax Rate in Ethiopia
The income tax rate in Ethiopia is the percentage of tax on your income. You are liable to income tax payments if you are one of the following.
- A permanent resident or national of Ethiopia
- An Ethiopian official/diplomat working abroad
- A person residing in Ethiopia for over 183 days in a single calendar year
- A non resident person with an Ethiopian-source income
Ethiopian Income Tax
Income is any cash received by a person as a form of payment for a temporary or permanent employment. In Ethiopia, your income is subject to a tax rate ranging from 10% to 35%. The table below shows the current income bands and tax rates in Ethiopia. These apply to Ethiopian salary, bonuses and any other income from contractual and permanent employment.
| Employment Income (Monthly) | Tax Rate |
|---|---|
| 0 – 600 | Exempt |
| 601 – 1,650 | 10% |
| 1,651 – 3,200 | 15% |
| 3,201 – 5,250 | 20% |
| 5,251 – 7,800 | 25% |
| 7,801 – 10,900 | 30% |
| Over 10,900 | 35% |
Ethiopian Business Tax
Corporations in Ethiopia are liable to Business tax ranging from 10% to 35%. These include all establishments conducting for profit work in Ethiopia. The table below shows the current business income bands and tax rates in Ethiopia.
| Business Income (Yearly) | Tax Rate |
|---|---|
| 0 -7,200 | Exempt |
| 7,201 – 19,800 | 10% |
| 19,801 – 38,400 | 15% |
| 38,402 – 63,000 | 20% |
| 63,001 – 93,600 | 25% |
| 93,601 – 130,800 | 30% |
| Over 130,800 | 35% |
Other Tax Rates
Pension/Social Security – 7%
Value-Added Tax – 15% (Business turnover of more than 500,000 ETB)
Dividends – 10%
Turnover tax – 2% (Business turnover of less than 500,000 ETB)