How it is calculated
- Social insurance: 11% of the insurable wage, with a 2026 minimum of EGP 2,700 and maximum of EGP 16,700 a month.
- Annual taxable income = (gross − social insurance) × 12 − personal exemption of EGP 20,000.
- Annual brackets:
| Bracket (EGP) | Rate |
|---|---|
| 0 – 40,000 | 0% |
| 40,001 – 55,000 | 10% |
| 55,001 – 70,000 | 15% |
| 70,001 – 200,000 | 20% |
| 200,001 – 400,000 | 22.5% |
| 400,001 – 1,200,000 | 25% |
| Above 1,200,000 | 27.5% |
For annual incomes above EGP 600,000 the lower brackets fall away step by step: above 600k the 0% band is lost, above 700k the 10% band, and so on until income above 1.2 million is taxed at 25% from the first pound and 27.5% on the excess.
A 0.05% contribution to the Martyrs’ Families Fund is also deducted from gross pay.
Worked example
Gross EGP 20,000: social insurance = 16,700 × 11% = 1,837. Annual taxable = (20,000 − 1,837) × 12 − 20,000 = 197,956. Tax = 1,500 + 2,250 + 25,591.20 = 29,341.20 a year, or 2,445.10 a month. After EGP 10 for the Martyrs’ Fund, net ≈ EGP 15,707.90.
Frequently asked questions
Gross salary vs insurable wage?
The insurable wage is what social insurance is calculated on; it can be lower than gross and has a yearly minimum and maximum.
Is the personal exemption EGP 20,000 a year?
Yes, under the latest amendments it is deducted from annual taxable income before the brackets apply.
Why does my tax jump above 600k?
The law removes the benefit of lower brackets for high earners, so tax starts at a higher rate.
Are annual bonuses included?
Enter a monthly average including bonuses, since tax is assessed on annual income.
Rules last checked: 2026-10