Timor-Leste Tax Calculator (2026)

Income tax rates and take-home pay for Timor-Leste

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Timor-Leste Income Tax Brackets (2025)

Bracket Income Range Rate
WIT-exempt threshold$0 - $5000.0%
WIT standard rate$500+10.0%

Key Facts

Tax Year

2025

Currency

USD

Top Rate

10.0%

Brackets

2 brackets

Tax-Free Threshold

$500

Social Contributions

0 items

Assumptions

  • · Model assumes resident individual employee receiving employment income (wages) in Timor-Leste.
  • · Wage Income Tax (WIT) applies to wages; standard income tax applies to other income sources.
  • · For a typical employee, WIT is the primary tax on employment compensation.
  • · No personal deductions, allowances, or credits are available under Timor-Leste law.
  • · Social security contributions are limited; no material mandatory employee scheme is currently in effect.
  • · Non-resident taxation is excluded; this model reflects resident employee status.
  • · No consumption, wealth, inheritance, estate, gift, or property taxes affect individual employees.
  • · Foreign tax credit rules exist but are not modeled in this representative scenario.

Frequently asked questions

How much income tax will I pay if I work in Timor-Leste?

Timor-Leste uses a Wage Income Tax (WIT) system with a simple structure: income up to USD 500 per month is tax-free, and anything above that is taxed at a flat rate of 10%. So if you earn USD 1,500 monthly, you'd pay 10% tax only on the USD 1,000 above the threshold, resulting in USD 100 in tax.

Is there a personal allowance or deductions I can claim in Timor-Leste?

No, Timor-Leste does not offer personal deductions, allowances, or tax credits for individual employees. Your tax is calculated directly on your income using the WIT brackets with no adjustments or relief available.

Do I need to pay social security contributions in Timor-Leste?

Social security contributions are very limited in Timor-Leste, and there is no material mandatory employee contribution scheme currently in effect. This means your main tax obligation as an employee is the Wage Income Tax only.

What if I earn income from sources other than employment in Timor-Leste?

Employment income is subject to Wage Income Tax (WIT), but other types of income like investments or business profits fall under the standard income tax system, which may have different rules. You should consult a local tax advisor to understand how non-employment income is taxed in your specific situation.

Are there any other taxes I should know about as a resident of Timor-Leste?

Timor-Leste does not impose consumption tax, wealth tax, inheritance tax, estate tax, gift tax, or property tax on individual employees. Your primary tax obligation is the Wage Income Tax on employment compensation.

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