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ComorosUAE vs Oman: salary after tax compared
Two Gulf offers side by side: what an expat keeps of the same gross salary in the UAE and in Oman, under the official 2026 rules.
On a gross salary of $5,000 a month, an expat in the UAE keeps about $4,997 (0.1% deducted), against about $5,000 for an expat in Oman (0% deducted). The UAE: no income tax on salaries. Oman: no income tax on salaries.
Monthly take-home pay at 6 salary levels
Each gross salary is converted into local currency at a fixed exchange rate and run through each country's 2026 rules. Take-home pay is shown in US dollars, with the local amount under it. Both columns are for a single expat employee.
| Gross a month (USD) | UAE take-home | Oman take-home | Difference a month |
|---|---|---|---|
| $2,000 | $1,999 7,340 AED | $2,000 769 OMR | $1.43 more in Oman |
| $3,000 | $2,999 11,012 AED | $3,000 1,153 OMR | $1.43 more in Oman |
| $5,000 | $4,997 18,352 AED | $5,000 1,922 OMR | $2.86 more in Oman |
| $8,000 | $7,997 29,369 AED | $8,000 3,076 OMR | $2.86 more in Oman |
| $12,000 | $11,997 44,059 AED | $12,000 4,614 OMR | $2.86 more in Oman |
| $20,000 | $19,997 73,438 AED | $20,000 7,690 OMR | $2.86 more in Oman |
Exchange rates: 1 AED = 0.2723 USD (2 October 2026), 1 OMR = 2.6008 USD (2 October 2026).
Which leaves you more?
Oman leaves you more at every salary level we compared. On $5,000 a month gross, the difference is about $2.86 a month ($34.3 a year) in favour of Oman.
The Gulf figures are for an expat. The UAE and Oman treat nationals differently: they pay pension contributions that expats do not. Switch to national in the calculator to see their figures.
Deductions on $5,000 a month, line by line
Every deduction from the same gross salary in each country, in local currency, with the calculator's notes.
- There is no income tax on salaries in the UAE.
- Expat employees pay no pension contribution and are entitled to an end-of-service gratuity from the employer.
- Unemployment insurance (ILOE) is mandatory: 5 dirhams a month plus VAT if the basic salary is 16,000 dirhams or less, and 10 dirhams above that. We used your gross salary to pick the category. Investors, domestic workers, people on temporary contracts, those under 18 and retirees who work are exempt.
- There is no income tax on salaries in Oman in 2026. Personal income tax (5% on income above 42,000 rials a year) starts on 1 January 2028.
- Nothing is deducted from a non-Omani's salary in 2026. The work injury branch for non-Omanis is deferred to July 2028, and the savings scheme (9% of basic pay, paid by the employer) starts on a date set by the Social Protection Fund board before July 2027; it is not calculated here.
Income tax and social insurance side by side
| Item | UAE | Oman |
|---|---|---|
| Income tax on salaries | None | None |
| Top income tax rate | 0% | 0% |
| Employee social insurance | Expats 0% (apart from unemployment insurance of 5 or 10 dirhams a month), UAE nationals 5% under the old law or 11% under the new law | Expats 0%, Omanis 8% (7.5% old age, disability and death + 0.5% job security) |
| Employer contributions on $5,000 | 0% | 0% |
| VAT (standard rate) | 5% | 5% |
| Corporate tax | 9% | 15% |
| End-of-service gratuity | Set by the labour law | Set by the labour law |
| Currency | UAE dirham (AED) | Omani rial (OMR) |
| Tax authority | Federal Tax Authority (FTA) | Oman Tax Authority |
| Double tax treaty between them | No bilateral treaty | |
Where the numbers shift
- Turning point
- The better choice does not change between $500 and $30,000 a month
- Taken from your next raise (on $5,000)
- UAE 0% · Oman 0%
- Marginal rate on $10,000
- UAE 0% · Oman 0%
- Tax freedom day ($5,000)
- UAE 1 January · Oman 1 January
- Take-home after VAT on spending
- UAE $4,759 · Oman $4,762
- Employer cost on top of salary
- UAE 0% · Oman 0%
Take-home after VAT = take-home pay ÷ (1 + the standard VAT rate): what the salary is worth if all of it is spent on goods at the standard rate. Tax freedom day: the day of the year on which you stop working to pay tax and contributions.
End-of-service gratuity
Both countries require employers to pay a lump sum when the contract ends. Amounts below are for $5,000 a month, with basic pay at 70% of gross and the contract ended by the employer.
| Years of service | UAE | Oman |
|---|---|---|
| 2 years | $4,900 17,995 AED | $7,000 2,691 OMR |
| 5 years | $12,250 44,987 AED | $17,500 6,729 OMR |
| 10 years | $29,750 109,255 AED | $35,000 13,457 OMR |
Resigning can reduce the amount in some countries. The end-of-service calculators apply each country's full rules.
Beyond salary: investments, family and residence
| Item | UAE | Oman |
|---|---|---|
| Gains on shares (top rate) | 0% | 0% |
| Gains on property (top rate) | 0% | 0% |
| Dividends | 0% | 0% |
| Crypto gains | Not taxed | Not taxed |
| Inheritance tax | No | No |
| Remote work visa | Remote work visa (virtual residence) | None |
What changes if you move from the UAE to Oman?
- On $5,000 a month you gain about $2.86 a month after the move ($34.3 a year), because the deduction rate falls from 0.1% to 0%.
- Tax residence in Oman: In 2026 there is no tax residence test for individuals, because they pay no income tax. You may also stay tax resident in the UAE if you do not end your residence there. Count your days.
UAE vs Oman: common questions
Which pays more after tax, UAE or Oman?
Oman leaves you more at every salary level we compared. On $5,000 a month gross, the difference is about $2.86 a month ($34.3 a year) in favour of Oman.
How much is left of $5,000 a month in the UAE and Oman?
On a gross salary of $5,000 a month, an expat in the UAE keeps about $4,997 (0.1% deducted), against about $5,000 for an expat in Oman (0% deducted). The UAE: no income tax on salaries. Oman: no income tax on salaries.
How much is left of $20,000 a month in each?
About $19,997 in the UAE and $20,000 in Oman. The marginal rates at this level are the same.
Do expats pay social insurance in Oman?
Expats 0%, Omanis 8% (7.5% old age, disability and death + 0.5% job security). On $5,000 a month an expat has 0% deducted in total.
Is VAT higher in the UAE or Oman?
VAT is 5% in the UAE and 5% in Oman. VAT applies to most of what you buy, so it changes what a salary is worth even when take-home pay is the same.
Is there a double tax treaty between the UAE and Oman?
We found no bilateral treaty in the official lists we checked on 9 October 2026. Without one, each country applies its own law, and many credit foreign tax on their own.
Does the comparison include the cost of living?
No. It covers taxes and mandatory contributions only, at fixed, dated exchange rates. Rent, schooling and health care can change the result, so weigh them next to these figures.
Sources
Rates and bands come from each country's official sources. The UAE last checked 2 October 2026, Oman 2 October 2026.
- The Official Portal of the UAE Government: pensions and social security for UAE citizens (26%: 11% insured and 15% employer, the 70,000 cap, and the 31 October 2023 date) UAE · official source
- GPSSA: distribution of contributions (5%, 12.5% and 2.5% under Law No. 7 of 1999) and the contribution account salary limits (3,000 to 70,000) UAE · official source
- Ministry of Human Resources and Emiratisation (MOHRE): Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Employment Relationship and its amendments (Article 51) UAE · official source
- Involuntary Loss of Employment (ILOE) insurance scheme: categories and premiums UAE · official source
- Social Protection Law issued by Royal Decree 52/2023 (amended text: Articles 52, 68, 70, 90, 115, 116, 121, 123, 127, 128, 136, 137 and 139), Official Gazette 1503, via the Qanoon website Oman · official source
- Royal Decree 60/2025 amending Article 6 of Royal Decree 52/2023 (deferring work injury cover for non-Omanis and the savings scheme), Official Gazette 1604 Oman · official source
- Labour Law issued by Royal Decree 53/2023 (Article 61) Oman · official source
- Royal Decree 56/2025 issuing the Personal Income Tax Law (5%, 42,000 rials, in force from 1 January 2028), Official Gazette 1602 Oman · official source
Results are estimates for information only, not tax advice. How we calculate.
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