Ethiopia Personal Income Tax
Detailed personal income tax rates and rules for Ethiopia in 2026.
Ethiopia levies progressive personal income tax on employment income with seven brackets ranging from 0% on the first ETB 600 monthly to 35% on income exceeding ETB 10,900 monthly. Business income is taxed at rates from 10% to 35%. Non-residents are taxed only on Ethiopian-sourced income. The tax year follows the Ethiopian calendar (Meskerem 1 to Pagume 5/6).
| Income Range (ETB) | Tax Rate |
|---|---|
| Br 0 – Br 7K | 0% |
| Br 7K – Br 20K | 10% |
| Br 20K – Br 38K | 15% |
| Br 38K – Br 63K | 20% |
| Br 63K – Br 94K | 25% |
| Br 94K – Br 131K | 30% |
| Br 131K+ | 35% |
Filing Deadline
Within 60 days after the end of the tax year
Residency Rule
An individual is resident if they have a domicile in Ethiopia or are present in Ethiopia for more than 183 days in any 12-month period.
How Ethiopia Income Tax compares
Ethiopia’s top personal income tax rate of 35% is the 59th highest of 203 countries TaxAtlas tracks, above the global average of 27.7% and Africa’s regional average of 32.3%.
