🇪🇹 Ethiopia
Net salary in Ethiopia
Ethiopia: 6 income tax brackets from 0% to 35% in 2026. The EXPATRIATION.IO calculator turns gross salary into net take-home pay using the official scale and employee social contributions.
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You have just calculated 5,610 ETB net per month.
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Tax breakdown by bracket
| Bracket | Rate | Amount | Tax |
|---|---|---|---|
| 0 Br – 24,000 Br | 0.0% | 24,000 Br | 0 Br |
| 24,000 Br – 48,000 Br | 15.0% | 24,000 Br | 3,600 Br |
| 48,000 Br – 84,000 Br | 20.0% | 36,000 Br | 7,200 Br |
| Income tax | 10,800 Br | ||
Social contributions breakdown
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Computed for your profile: 67,320 Br net in Ethiopia.
The page informs you. The report is the document you put on the table, computed for your exact profile:
| Calculator | Report | |
|---|---|---|
| Dated, sourced PDF you can present | No | Yes |
| Two countries side by side in one document | No | Yes |
| Equivalent gross and sensitivity table | No | Yes |
| Price | Free | 29 EUR |
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PDF by email in under 2 minutes · Secure payment by Stripe · Source: mor.gov.et (2026) · Last updated: August 2026
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This is an estimate for informational purposes. Actual taxes vary based on individual circumstances. Verify with local tax authorities for accurate calculations.
🇪🇹 Ethiopia
Ethiopia taxes employment income through Schedule A of the Federal Income Tax Proclamation, a six-band monthly scale from 0% to 35% (Income Tax (Amendment) Proclamation No. 1395/2025, in force July 2025), shown here annualised. The 2025 reform raised the monthly exemption from 600 to 2,000 birr, set the lowest rate at 15%, and applies the top 35% rate above 14,000 birr per month. The tax applies to gross employment income with no standard deduction. The mandatory employee contribution is the private-sector pension at 7% of salary, on an insurable ceiling of 15,000 birr per month, which is not deducted from the tax base.
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What the calculation reproduces, what it does not model
The six-band scale is the one enacted by the Income Tax (Amendment) Proclamation No. 1395/2025 (in force July 2025), which raised the monthly exemption from 600 to 2,000 birr and reduced the brackets from seven to six. It is applied to the entered gross as employment income: Ethiopian law allows no standard deduction from employment income, so the tax base is gross. The employee pension (7%, with no salary ceiling) is shown but not deducted from the tax base. This calculator treats the entered gross as fully taxable basic salary, so tax-exempt allowances (transport, per diem, hardship) are not separated out, and the public-sector pension rate is not applied. For your situation, confirm with the Ministry of Revenues.
Tax system in Ethiopia
Ethiopia taxes employment income through Schedule A of the Federal Income Tax Proclamation, a six-band monthly scale from 0% to 35% (Income Tax Amendment Proclamation No. 1395/2025, in force July 2025), shown here annualised. The 2025 reform raised the monthly exemption from 600 to 2,000 birr, set the lowest rate at 15%, and applies the top 35% rate above 14,000 birr per month. The tax is charged on gross employment income with no standard deduction. The mandatory employee contribution is the private-sector pension at 7% of salary, on an insurable ceiling of 15,000 birr per month, which does not reduce the tax base. Addis Ababa hosts the African Union and many international organisations, drawing expatriate professionals across the continent.
Income tax scale 2026
| Taxable income | Rate |
|---|---|
| 0 Br – 24,000 Br | 0% |
| 24,000 Br – 48,000 Br | 15% |
| 48,000 Br – 84,000 Br | 20% |
| 84,000 Br – 120,000 Br | 25% |
| 120,000 Br – 168,000 Br | 30% |
| 168,000 Br and above | 35% |
Employee social contributions
| Contribution | Rate | Annual cap |
|---|---|---|
| Pension | 7% | No cap |
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Source: mor.gov.et · Tax year 2026 · Last updated August 2026