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

What is the income tax rate in Timor-Leste for employees?

Timor-Leste applies a Wage Income Tax (WIT) with a flat 10% rate on employment income above USD 500 per month. Income up to USD 500 is exempt from WIT, making it a simple two-bracket system with no deductions or allowances available to reduce your tax liability.

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

No material mandatory employee social security scheme is currently in effect in Timor-Leste. This means as an employee, you generally won't have automatic payroll deductions for social contributions, though you should verify your specific employer's policies.

Are there any tax deductions or credits I can claim in Timor-Leste?

No, Timor-Leste does not allow personal deductions, allowances, or tax credits for individual employees. Your WIT is calculated directly on your gross wages with no reductions, so the 10% rate applies to all income above the USD 500 monthly threshold.

How much will I take home if I earn USD 2,000 per month in Timor-Leste?

If you earn USD 2,000 monthly, the first USD 500 is exempt, and the remaining USD 1,500 is taxed at 10%, resulting in USD 150 in WIT. Your take-home pay would be USD 1,850 before any voluntary deductions or other non-tax expenses.

Does Timor-Leste have state or regional income taxes?

No, Timor-Leste does not have subnational or regional income taxes. The national WIT system applies uniformly across the country, so your tax rate is the same regardless of which province or region you work in.

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