Iraq Tax Calculator (2026)

Iraq Income Tax Brackets (2025)

Personal allowance: IQD 2,500,000

Social security contribution

How much income tax will I pay as an expat working in Iraq?

Iraq uses a progressive income tax system with four brackets ranging from 3% to 15%, applied to income above your personal allowance of IQD 2,500,000. For example, income between IQD 250,000 and IQD 500,000 is taxed at 5%, while income above IQD 1,000,000 is taxed at 15%. Your actual tax depends on your gross salary and deductions like social security contributions.

What is the personal allowance in Iraq and who qualifies?

Iraq provides a personal allowance of IQD 2,500,000 for bachelor status, which means you only pay income tax on earnings above this threshold. This standard allowance applies to single employees with no dependents working in the private sector.

Do I have to pay social security contributions in Iraq?

Yes, employees in Iraq must contribute 5% of their gross income to social security, and this contribution is deductible from your taxable income before income tax is calculated. Your employer also contributes 12% on your behalf, though this doesn't directly affect your take-home pay.

How are Iraq's income tax brackets structured?

Iraq has four progressive income tax brackets: 3% on the first 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. Each bracket applies only to income within that range, so higher earners pay a blended rate across all brackets.

Are risk allowances and bonuses taxed differently in Iraq?

Risk allowances capped at 30% of your basic salary are treated as regular compensation and subject to the standard income tax and social security contributions. The tax calculator assumes these allowances are included in your gross income and taxed according to the normal progressive brackets.

Other tax calculators