United Arab Emirates Tax Calculator (2026)
Income tax rates and take-home pay for United Arab Emirates
United Arab Emirates Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| No Income Tax | AED 0+ | 0.0% |
Unemployment Insurance Scheme
Fixed amount: AED 60 per year
Key Facts
Tax Year
2025
Currency
AED
Top Rate
0.0%
Brackets
1 bracket
Allowance
None
Social Contributions
1 item
Assumptions
- · The United Arab Emirates does not impose federal or emirate-level personal income tax.
- · Assumed the worker is a non-GCC national. UAE and GCC nationals are subject to social security contributions (5% for the employee), which do not apply to foreign workers.
- · The Unemployment Insurance Scheme (ILO) is mandatory for both Emirati and foreign workers in the public and private sectors.
- · Unemployment Insurance is 60 AED/year for basic salary up to 16,000 AED/month, or 120 AED/year above. Using 60 AED (lower tier) as the default.
- · The DIFC Employee Workplace Savings Scheme (DEWS) and End of Service Gratuity (EOSG) are excluded as they are employer-funded contributions.
Frequently asked questions
Do I have to pay income tax if I work in the UAE?
No, the United Arab Emirates does not impose federal or emirate-level personal income tax on employment income. This is one of the key advantages of working in the UAE, as your salary is not subject to income tax deductions.
What deductions will be taken from my salary in the UAE?
The main deduction you'll face is the Unemployment Insurance Scheme, which costs 60 AED per year for most workers with a basic salary up to 16,000 AED per month. This is a mandatory contribution, though it's a relatively small amount compared to income tax in other countries.
Are GCC nationals taxed differently than expats in the UAE?
Yes, GCC nationals are required to pay social security contributions of 5% of their salary, while non-GCC nationals like most expats are exempt from this requirement. If you're an expat moving to the UAE, you won't be subject to these social security contributions.
Will I pay more tax if I earn above a certain salary threshold?
No, there are no income tax brackets in the UAE. Whether you earn 10,000 AED or 100,000 AED per month, you will not pay any income tax on your earnings, making the tax system simple and flat across all income levels.
What is the Unemployment Insurance Scheme and do I have to pay it?
The Unemployment Insurance Scheme is a mandatory annual contribution of 60 AED (or 120 AED for those earning above 16,000 AED monthly) that applies to both Emirati and foreign workers in the public and private sectors. This is the primary employment-related deduction you'll encounter in the UAE.
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