Ethiopia Tax Tables 2024 - Tax Rates and Thresholds in Ethiopia
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This page contains the tax table information used for the calculation of tax and payroll deductions in Ethiopia in 2024. These tax tables are used for the tax and payroll calculators published on iCalculator™ ET, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Ethiopia or would like to add to or suggest amendments to the information herein then please contact us.
2024 Tax Tables [Quick Links]
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Ethiopia Personal Income Tax Tables in 2024
The Income tax rates and personal allowances in Ethiopia are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Ethiopia Tax Calculator 2024.
Ethiopia Residents Income Tax Tables in 2024
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 0% | Income from $ 0.000.00 | to | $ 7,200.00 |
| 10% | Income from $ 7,200.01 | to | $ 19,800.00 |
| 15% | Income from $ 19,800.01 | to | $ 38,400.00 |
| 20% | Income from $ 38,400.01 | to | $ 63,000.00 |
| 25% | Income from $ 63,000.01 | to | $ 93,600.00 |
| 30% | Income from $ 93,600.01 | to | $ 130,800.00 |
| 35% | Income from $ 130,800.01 | | and above |
Ethiopia Non-residents Income Tax Tables in 2024
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 0% | Income from $ 0.000.00 | to | $ 7,200.00 |
| 10% | Income from $ 7,200.01 | to | $ 19,800.00 |
| 15% | Income from $ 19,800.01 | to | $ 38,400.00 |
| 20% | Income from $ 38,400.01 | to | $ 63,000.00 |
| 25% | Income from $ 63,000.01 | to | $ 93,600.00 |
| 30% | Income from $ 93,600.01 | to | $ 130,800.00 |
| 35% | Income from $ 130,800.01 | | and above |
In Ethiopia, social security deductions made by employees are typically deductible when calculating taxable income. This means that the amounts employees contribute to the social security system are subtracted from their gross income before the computation of income tax. Such a policy effectively reduces the taxable income of employees, potentially lowering their overall income tax liability. This approach is intended to provide some relief to employees by acknowledging their mandatory contributions to state-run social security programs.
Ethiopia Social Security and Payroll Deduction Rates in 2024
In Ethiopia, the social security and payroll deduction system encompasses contributions from both employees and employers, aimed at providing a range of benefits to the workforce. These contributions are mandatory and form an integral part of the country's welfare system. The main components of these deductions include pension, healthcare, and occupational injury benefits.
Ethiopia Social Security in 2024: Rates for Employers and Employees| Category | Employee | Employer | Total |
|---|
| Social Security and Pension Fund | 7% | 11% | 18% |
Ethiopia Social Security and Payroll Deduction in 2024: Earnings Thresholds for Employers and Employees| Category | Employee | Employer |
|---|
| Min. | Max. | Min. | Max. |
|---|
| Social Security and Pension Fund | n/a | n/a | n/a | n/a |
Pension Contributions: A significant part of social security deductions is allocated to pension funds. These contributions are intended to ensure that employees receive a stable source of income after retirement, contributing to their financial security in their later years.
Healthcare Contributions: Contributions towards healthcare cover medical benefits for employees. This includes access to healthcare services and support for medical expenses, ensuring the health and well-being of the workforce.
Occupational Injury Benefits: Contributions are also made towards occupational injury benefits. These benefits provide support to employees who suffer from work-related injuries or illnesses, covering medical expenses and offering financial assistance during recovery periods.
The social security system in Ethiopia plays a vital role in providing financial support and security to employees across various life stages and circumstances. For employers, contributing to this system is a legal requirement, reflecting their responsibility towards their employees' welfare. This comprehensive social security framework is essential for the socio-economic stability of Ethiopian workers and their families.
Ethiopia VAT Rates in 2024
VAT rates for Ethiopia are reviewed annually, you can use the VAT Calculator to calculate VAT due in Ethiopia or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.
Ethiopia VAT Rates| VAT Rate | VAT Description |
|---|
| 0% | Zero Rated |
| 15% | Standard Rate |
Historic Tax Tables supported for Ethiopia
The following tax tables are supported by iCalculator™ ET as part of the suite of free tax tools we provide for Ethiopia.