Iraq Tax Calculator (2026)
Income tax rates and take-home pay for Iraq
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Iraq Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| First bracket | IQD 0 - IQD 250,000 | 3.0% |
| Second bracket | IQD 250,000 - IQD 500,000 | 5.0% |
| Third bracket | IQD 500,000 - IQD 1,000,000 | 10.0% |
| Fourth bracket | IQD 1,000,000+ | 15.0% |
Personal allowance: IQD 2,500,000
Social security contribution
| Bracket | Income Range | Rate |
|---|---|---|
| Employee social security contribution | IQD 0+ | 5.0% |
Key Facts
Tax Year
2025
Currency
IQD
Top Rate
15.0%
Brackets
4 brackets
Allowance
IQD 2,500,000
Social Contributions
1 item
Assumptions
- · Model assumes private sector employment with standard bachelor allowance (IQD 2,500,000).
- · Social security contributions: employee 5% on net salary after allowances, employer 12%.
- · Income tax applies to excess over personal allowance; social contributions deducted before tax calculation.
- · Risk allowances capped at 30% of basic salary are assumed to be part of regular compensation.
- · No voluntary schemes or optional expat regimes included.
- · Model represents a single, 35-year-old resident employee with no dependents.
- · Personal allowance of IQD 2,500,000 is standard for bachelor status.
Frequently asked questions
How much income tax will I pay in Iraq if I earn IQD 5,000,000 per year?
Iraq uses a progressive tax system with four brackets ranging from 3% to 15%. After applying the standard bachelor personal allowance of IQD 2,500,000, your taxable income would be IQD 2,500,000. This would be taxed across the brackets: 3% on the first IQD 250,000, 5% on the next IQD 250,000, 10% on the next IQD 500,000, and 15% on the remaining IQD 1,500,000, resulting in approximately IQD 337,500 in income tax before social contributions.
What is the personal allowance in Iraq and who qualifies for it?
Iraq provides a standard personal allowance of IQD 2,500,000 for bachelor status, which reduces your taxable income. This allowance is designed for single individuals with no dependents and is a key component in calculating how much of your salary is subject to income tax.
Do I have to pay social security contributions in Iraq, and how much?
Yes, employees in Iraq must contribute 5% of their gross income to social security, and this contribution is deductible from your taxable income. Additionally, employers pay 12% in social security contributions on behalf of their employees, though this does not directly affect your take-home pay calculation.
What are the income tax brackets in Iraq?
Iraq has four progressive income tax brackets: 3% on income up to IQD 250,000, 5% on income from IQD 250,000 to IQD 500,000, 10% on income from IQD 500,000 to IQD 1,000,000, and 15% on all income above IQD 1,000,000. These brackets apply to your taxable income after deducting the personal allowance and social security contributions.
Are there regional or state taxes I need to pay in addition to national income tax in Iraq?
The tax model for Iraq does not include subnational or regional taxes. Your tax obligations are limited to the national income tax brackets and mandatory social security contributions.
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