This article provides a direct overview of the individual income tax framework in Egypt for the 2025 fiscal year. It covers the structure, income brackets, and practical considerations based solely on the latest available official information.
Overview of Egypt’s Individual Income Tax System (2025)
Egypt operates under a progressive individual income tax system based on total income. Tax residents and relevant non-residents are taxed according to a graduated scale, with higher income levels facing higher rates. All rates in this article are quoted in Egyptian pounds (EGP).
Income Tax Brackets and Rates
The Egyptian individual income tax for 2025 is structured as follows:
| Taxable Income Bracket (EGP) | Rate (%) |
|---|---|
| EGP 0 – EGP 40,000 | 0% |
| EGP 40,001 – EGP 55,000 | 10% |
| EGP 55,001 – EGP 70,000 | 15% |
| EGP 70,001 – EGP 200,000 | 20% |
| EGP 200,001 – EGP 400,000 | 22.5% |
| EGP 400,001 – EGP 1,200,000 | 25% |
| Above EGP 1,200,000 | 27.5% |
Income up to EGP 40,000 per year is fully exempt from individual income tax. Once annual earnings cross this threshold, incremental tax rates apply only to the portion of income within each bracket. For incomes over EGP 1,200,000, the maximum marginal rate is 27.5%.
Key Features of the Egyptian Personal Income Tax System
- Tax Type: Progressive (higher incomes are taxed at higher rates)
- Assessment Basis: Taxable income earned during the relevant fiscal year
- Surtaxes: No additional surtaxes or solidarity taxes are currently reported
- Currency: All brackets are denominated in EGP (Egyptian Pounds)
Current data for specific deductions, tax credits, or additional levies is not publicly available from Egyptian authorities at this time, although it is typical for many personal tax systems to have such provisions subject to detailed regulation.
Summary Table: Egypt Income Tax Brackets for 2025
| Income Min (EGP) | Income Max (EGP) | Rate (%) |
|---|---|---|
| 0 | 40,000 | 0% |
| 40,001 | 55,000 | 10% |
| 55,001 | 70,000 | 15% |
| 70,001 | 200,000 | 20% |
| 200,001 | 400,000 | 22.5% |
| 400,001 | 1,200,000 | 25% |
| 1,200,001 | No limit | 27.5% |
Actionable Pro Tips for Efficient Tax Handling in Egypt
- Track all income sources consistently: Maintain detailed records of all EGP-denominated income streams to ensure accurate bracket calculation and avoid underreporting risks.
- Understand bracket creep: As your annual earnings increase, extra income might push you into higher brackets. Review your total income at mid-year to anticipate potential tax rate jumps.
- Allocate bonuses carefully: If possible, time significant bonus payments to avoid moving a substantial portion of your income into a higher tax bracket before December 31 each year.
- Consult the official website for latest forms and thresholds: Egypt’s tax authority periodically updates brackets and administrative procedures. Visit the official Ministry of Finance homepage at https://www.mof.gov.eg for official updates and documentation.
Foreign Currency Reference
For readers referencing income in U.S. dollars: As of early 2025, the USD/EGP exchange rate is approximately 1 USD = 50 EGP. For example, the tax-free threshold (EGP 40,000) equals around $800 (USD) using this rate. Always confirm the latest exchange rates if planning international financial transfers.
Egypt’s current personal income tax system applies progressive rates ranging from 0% up to 27.5%, with generous exemptions on modest wages and a maximum rate targeting high earners. The absence of supplementary surtaxes simplifies planning for most taxpayers. With a clear progressive framework, the system prioritizes transparency for both residents and foreign-income earners. It is advisable to regularly consult the Egyptian Ministry of Finance for potential updates, especially given local administrative adjustments throughout the year.