Iraq Tax Calculator (2026)
Income tax rates and take-home pay for Iraq
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?
Iraq uses a progressive tax system with four income tax brackets ranging from 3% to 15%. After your personal allowance of IQD 2,500,000 (for bachelor status), income in the first bracket up to IQD 250,000 is taxed at 3%, with rates increasing to 5%, 10%, and finally 15% for income above IQD 1,000,000. The calculator will show you exactly how much tax you owe based on your salary.
What is the personal allowance in Iraq and who gets it?
The standard personal allowance in Iraq is IQD 2,500,000 for bachelor employees in the private sector. This means you only pay income tax on earnings above this threshold, which significantly reduces your overall tax burden. The allowance applies to single, resident employees with no dependents.
Do I have to pay social security contributions in Iraq?
Yes, as an employee in Iraq you are required to contribute 5% of your gross income to social security, which is deductible from your taxable income. Your employer also contributes 12% on your behalf, though this doesn't directly affect your take-home pay. These contributions are calculated separately from your income tax and help fund social security benefits.
What is my take-home pay after taxes and contributions?
Your take-home pay is calculated by subtracting both the 5% employee social security contribution and your income tax from your gross salary. The calculator on this page will compute your exact net pay based on your specific salary and the progressive tax brackets. For example, a higher earner in the top bracket (15% tax rate) plus the 5% social contribution will have a significantly different net pay than someone in the lower brackets.
Are there any other taxes or deductions I should know about?
The main taxes affecting your salary in Iraq are income tax and the 5% social security contribution; there are no additional subnational or regional taxes, and no voluntary schemes are included in this calculation. The model assumes standard private sector employment without special allowances beyond the personal allowance, so what you see in the calculator represents your primary tax obligations. For complex situations like risk allowances or other special circumstances, you may want to consult a local tax advisor.
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