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 bracketIQD 0 - IQD 250,0003.0%
Second bracketIQD 250,000 - IQD 500,0005.0%
Third bracketIQD 500,000 - IQD 1,000,00010.0%
Fourth bracketIQD 1,000,000+15.0%

Personal allowance: IQD 2,500,000

Social security contribution

Bracket Income Range Rate
Employee social security contributionIQD 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

What is the top income tax rate in Iraq?

The highest marginal income tax rate in Iraq is 0.1%. Your effective tax rate will be lower depending on your income level.

How many tax brackets does Iraq have?

Iraq has 4 income tax brackets. Income is taxed in brackets - you only pay the higher rate on income above each threshold, not on your entire income.

How is take-home pay calculated in Iraq?

Take-home pay in Iraq is your gross salary minus income tax, social contributions, and any applicable surcharges. Use the calculator above to see an exact breakdown for your salary.

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