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Ethiopia
Individual - Taxes on personal income
Last reviewed - 18 December 2025In Ethiopia, individuals are taxed on income that is sourced from Ethiopia, wherever paid. An individual is either taxed as a resident or a non-resident.
Ethiopian resident individuals are taxed on their worldwide income. Non-residents are taxed on their Ethiopian-sourced income. The same rates of tax are applicable to both residents and non-residents.
The taxable income of a person for any year is the total of that person's income for the year less the total amount of deductions allowed to that person. Taxable income comprises the following: employment income, business profits, and investment income.
Summary of monthly employment income tax brackets
| Salary (ETB) | Income tax payable (%) |
|
| From | To | |
| 0 | 2,000 | Exempt threshold |
| 2,001 | 4,000 | 15 |
| 4,001 | 7,000 | 20 |
| 7,001 | 10,000 | 25 |
| 10,001 | 14,000 | 30 |
| Over 14,000 | 35 | |
* The deductible fee is a tax relief applied to the Pay-As-You-Earn (PAYE) system, and the amount depends on the salary bands.
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