Timor-Leste Tax Calculator (2026)
Income tax rates and take-home pay for Timor-Leste
Timor-Leste Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| Tax-Free Threshold | $0 - $6,000 | 0.0% |
| Wage Income Tax | $6,000+ | 10.0% |
Social Security Contribution
| Bracket | Income Range | Rate |
|---|---|---|
| Standard Rate | $0+ | 4.0% |
Key Facts
Tax Year
2025
Currency
USD
Top Rate
10.0%
Brackets
2 brackets
Tax-Free Threshold
$6,000
Social Contributions
1 item
Assumptions
- · Wage Income Tax (WIT) is used as the primary income tax for employees as it is a final tax.
- · The $6,000 annual threshold from the resident Personal Income Tax section is used, as the WIT table in the source likely contains a typographical error in the scale of the 'Annual' heading ($500 vs $6,000).
- · Social security contribution (4%) is included based on the General Social Security Regime (Law No. 12/2016) referenced as the 'limited scheme' in the source.
Frequently asked questions
What is the income tax rate in Timor-Leste?
Timor-Leste uses a Wage Income Tax (WIT) system with a simple two-bracket structure. Income up to $6,000 USD annually is tax-free, and income above $6,000 is taxed at a flat rate of 10%. This makes it relatively straightforward compared to many other countries.
Do I need to pay social security contributions in Timor-Leste?
Yes, if you're an employee in Timor-Leste, you must contribute 4% of your gross income to the Social Security Contribution under the General Social Security Regime. This contribution is not tax-deductible, so it comes out of your take-home pay in addition to any income tax owed.
How much will I take home if I earn $12,000 per year in Timor-Leste?
On a $12,000 annual salary, you would owe $600 in income tax (10% on the $6,000 above the threshold) plus $480 in social security contributions (4% of gross income). This brings your annual take-home to approximately $10,920 USD.
Is there a tax-free allowance in Timor-Leste?
Yes, Timor-Leste provides a $6,000 USD annual tax-free threshold for wage earners. Any income below this amount is not subject to the Wage Income Tax, though you would still need to pay social security contributions on your total earnings.
Are there different tax rates depending on which region of Timor-Leste I work in?
No, Timor-Leste has a unified national tax system with no regional or subnational variations. The same income tax brackets and social security contribution rates apply throughout the country.
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