How to calculate income tax on salary
Personal income tax on employment salaries is not uniform across the region: Jordan levies progressive brackets, most Gulf states levy none at all, and Oman has announced a personal tax for 2028. This guide explains what the calculator shows.
Jordan: brackets and allowance
Jordan applies a personal allowance of JOD 9,000 per year to total income, then progressive brackets on the remainder: 5% up to 5,000, 10% up to 10,000, 15% up to 15,000, 20% up to 20,000, 25% up to 1,000,000, and 30% above. Tax is computed annually, then spread over the months.
Countries with no personal income tax
Saudi Arabia, the UAE, Kuwait, Qatar and Bahrain do not levy personal income tax on employment salaries; the taxes they do impose target companies and business profits, not wages. The tax is therefore zero for these countries in the calculator.
Oman: from 2028
Oman currently has no personal income tax, but Royal Decree 56/2025 introduces a 5% tax on annual income above OMR 42,000 for tax residents and certain non-residents, effective 1 January 2028. The calculator reflects the current position (zero).
How to compute it yourself
Add up annual income, subtract the personal allowance, and apply each bracket only to the slice that falls within it (not the whole amount at the top rate). Example: annual income of 14,000 after the allowance: 5,000 × 5% + 4,000 × 10% = 250 + 400 = 650.
Key takeaways
- Jordan: allowance of 9,000, then brackets from 5% to 30%.
- Saudi Arabia, UAE, Kuwait, Qatar, Bahrain: zero tax on salaries.
- Oman: 5% above 42,000 per year effective 1 January 2028.
- Brackets apply to each slice, not the entire income at the top rate.
Frequently asked questions
Why does the calculator show zero for Gulf states?
Because their laws do not currently levy personal income tax on employment salaries; their taxes target companies and business activity.
Is the Jordanian allowance the same for everyone?
The general allowance is JOD 9,000 per year, and additional family and education allowances may apply; the calculator uses the basic allowance.
Does the example include the national contribution?
No, there is a 1% national contribution on taxable income above JOD 200,000 in Jordan, which is outside the calculator’s current scope.