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
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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