Iraq Personal Income Tax
Detailed personal income tax rates and rules for Iraq in 2026.
Iraq's personal income tax applies progressive rates from 3% to 15% on monthly income. The maximum rate of 15% is one of the lowest in the region. A personal exemption applies. Employment income and other personal income are aggregated for tax purposes.
| Income Range (IQD) | Tax Rate |
|---|---|
| IQD 0 – IQD 250K | 3% |
| IQD 250K – IQD 500K | 5% |
| IQD 500K – IQD 1.0M | 10% |
| IQD 1.0M+ | 15% |
Filing Deadline
March 31 (for non-employment income); employment income is withheld at source
Residency Rule
Individuals domiciled in Iraq or present for more than 4 months are residents taxed on Iraqi-sourced income. Iraq generally taxes on a source basis.
Additional Notes
Tax administration has been significantly challenged by decades of conflict. The Kurdistan Regional Government maintains its own tax system with some differences from federal Iraq.
How Iraq Income Tax compares
Iraq’s top personal income tax rate of 15% is the 156th highest of 203 countries TaxAtlas tracks, below the global average of 27.7% and Asia’s regional average of 22.2%.
