Taxes on salaries in Algeria 2026

How is IRG on salaries worked out in Algeria?

Start with monthly gross pay and deduct the employee's 9% social security contribution. What is left is taxable pay.

The scale in Article 104 of the Code of Direct Taxes and Similar Levies, converted to monthly amounts, then applies: the part up to 20,000 dinars is tax free, then 23% up to 40,000, 27% up to 80,000, 30% up to 160,000, 33% up to 320,000 and 35% above that.

A 40% abatement comes off the resulting tax, at least 1,000 dinars and at most 1,500 dinars a month. Example: pay of 100,000 dinars gives taxable pay of 91,000 and tax on the scale of 18,700, minus 1,500, so the tax is 17,200 dinars and net pay is 73,800 dinars.

What are the 30,000 dinar exemption and the relief for pay between 30,000 and 35,000?

Since the 2022 Finance Law, any taxable pay of no more than 30,000 dinars a month is fully exempt from IRG. This means pay after the 9% deduction, so gross pay of up to about 32,967 dinars stays tax free.

So that the deduction does not jump suddenly above this limit, taxable pay between 30,000 and 35,000 dinars gets a second abatement using a formula set in the law: the tax after the first abatement multiplied by 137/51, minus 27,925/8. As a result, the tax rises gradually from almost zero until it meets the normal calculation at 35,000 dinars.

Workers with a physical, mental, visual or hearing disability, and retirees in the general scheme, have a different formula that runs up to 42,500 dinars.

How much does CNAS social security take?

The employee pays 9% of gross pay with no ceiling: 1.5% for social insurance, 6.75% for retirement, 0.5% for unemployment insurance and 0.25% for early retirement.

The employer pays a further 25%: 11.5% for social insurance, 11% for retirement, 1.25% for work accidents, 1% for unemployment and 0.25% for early retirement. Another 0.5% for retirement comes from the social services fund, for a total of 34.5% under Executive Decree 15-236.

What changed for employees in 2026?

The 2026 Finance Law (Law 25-17) did not change the IRG scale or the rules on salaries. It amended Article 104, but only the part on dividends, and left the point on salaries and wages unchanged.

The current scale has applied since 1 January 2022, and the 2023, 2024 and 2025 Finance Laws left it unchanged for salaries. Any pay rise in 2026 goes through the same scale.

Who pays IRG in Algeria, and how are foreigners treated?

People with a tax home in Algeria pay global income tax on their total income, and non-residents on their income from Algerian sources.

A foreign employee working for an employer in Algeria has the same monthly withholding and the same scale. Bilateral double tax treaties may set special rules for some cases, such as short assignments.

Do employees have to file an annual return?

An employee paid by one employer who withholds tax every month usually needs to do nothing, as the employer declares and pays the withholding.

Anyone with other income, such as a business or rent from property, declares their total income to the tax office for their tax home, and earlier withholdings come off the final tax.

What about self-employment and rental income?

Profits from commercial activities and non-commercial professions are taxed on the same progressive scale where the activity is carried out, unless the owner falls under the single flat-rate tax regime.

Rent from homes is subject to a final tax of 7% of gross rent if annual rent does not exceed 1,800,000 dinars. This calculator covers salaries only.

Practical tips for reading your payslip

Check that the 9% is charged on gross pay subject to contributions, and that IRG is charged on pay after it. The tax base is usually rounded down to the nearest 10 dinars, so your payslip may differ from this calculator by a few dinars.

If your taxable pay is close to 30,000 dinars, note that any small raise above this limit gets the second abatement, so you lose only a limited part of the raise.

What changed in 2026?

• No change to the IRG scale or the rules on salaries in 2026: Article 11 of the 2026 Finance Law (Law 25-17) amended Article 104 of the Code of Direct Taxes and left the point on salaries unchanged.
• Withholding at source on dividends and shares in companies set at 10% as a final tax (Article 11 of the 2026 Finance Law).

For expats

Algerians living in France pay tax on their salaries there, and pay IRG in Algeria only on Algerian-source income, such as rent from a home in Algeria, as long as they have no tax home in Algeria. Money sent to family is not income subject to income tax. Algeria and France have a double tax treaty that sets out which country taxes each type of income. Anyone who moves back to work in Algeria is taxed on the same scale as other employees.

Income tax rates

The scale is annual, but tax on salaries is worked out monthly by dividing the brackets by 12 (exempt up to 20,000 dinars a month, then 23% up to 40,000, 27% up to 80,000, 30% up to 160,000, 33% up to 320,000 and 35% above that). A 40% reduction is then applied to the tax (between 1,000 and 1,500 dinars a month). Taxable pay up to 30,000 dinars a month is fully exempt, and a second reduction applies between 30,000 and 35,000 dinars.

Other taxes that matter in Algeria

Capital gains

Gains on selling unlisted shares and stakes are subject to global income tax (IRG) at a final rate of 15%, or a reduced 5% if the gain is reinvested before 31 December of the following year. Income and gains on shares listed on the stock exchange are exempt for 5 years from 1 January 2024 (until the end of 2028). Gains on selling property are taxed at a final rate of 15%, with a 50% reduction in the tax when selling your only home used as your main residence. Since 2026, if the purchase price cannot be proved, it is set at a flat 40% of the sale price.

Dividends

Since the 2026 Finance Law, withholding at source on dividends and distributed shares is 10% as a final tax, down from 15%. Income from shares listed on the stock exchange stays exempt under the exemption extended to the end of 2028.

Crypto

Article 117 of the 2018 Finance Law bans buying, selling, using and holding virtual currency. Law 25.10 of 24 July 2025 then added Article 6 bis to the anti-money laundering law, banning the issuing, buying, selling, holding and promotion of virtual assets and the running of platforms for them, including mining.

Inheritance

Estates are subject to registration duty on transfers on death under the Registration Code. Unofficial sources give a rate of 3% for parents, children and spouses and 5% for other heirs, with the deceased's home exempt for direct heirs. We could not confirm these rates from an official text because the General Tax Directorate's website is unavailable. Estates are divided under Islamic inheritance rules in the Family Code.

Property and wealth

Algeria has a wealth tax (the tax on assets). Those liable declare their assets online every 4 years before 30 April and pay it every year under the 2026 Finance Law. There is also an annual property tax on built and undeveloped property. We could not confirm the wealth tax threshold and rates from an official source.

Tax residency

Algeria uses the concept of a tax home: residents pay global income tax on their total income, and non-residents only on their Algerian income, through special withholdings. The tax home is defined in Article 3 of the Code of Direct Taxes and Similar Levies on the basis of your home, main place of residence or centre of interests. We could not review its updated text because the General Tax Directorate's website is unavailable. Tax offices issue tax residency certificates for use under double tax treaties. We have not verified the procedure from an official source.

Retirement and pensions

Pensions are subject to global income tax on the progressive scale, withheld at source. Monthly income up to 30,000 dinars is exempt, and retirees in the general scheme with income below 42,500 dinars get an extra reduction, under the Article 104 formula in the 2022 Finance Law. We could not confirm how foreign pensions are treated, and there is no special retirement visa.

Cost to the employer

Total social security contributions come to 34.5% of pay: 25% from the employer (11.5% social insurance, 1.25% work accidents, 11% retirement, 1% unemployment insurance, 0.25% early retirement), 9% from the worker, and 0.5% from the company's social services fund, so the employer's cost reaches 25.5%. We have not verified whether there is a ceiling on pay subject to contributions.

Social insurance

Sources

1. Finance Law 2022 (Law 21-16), article 31 amending article 104 of the Direct Taxes Code: the scale, the 40% reduction, the 30,000 dinar exemption and the 137/51 formula, Official Journal No. 100 of 2021 Official source · checked 2 October 2026
2. Finance Law 2026 (Law 25-17), article 11: article 104 unchanged for salaries, Official Journal No. 88 of 2025 Official source · checked 2 October 2026
3. Finance Law 2025 (Law 24-08), article 8, and Finance Law 2023, article 5: the point on salaries unchanged Official source · checked 2 October 2026
4. Executive Decree 15-236 setting the split of the social security contribution rate (25% employer, 9% employee), Official Journal No. 49 of 2015 Official source · checked 2 October 2026
5. Finance Law 2017, articles 26 and 27: VAT at 19% and 9%, Official Journal No. 77 of 2016 Official source · checked 2 October 2026
6. Bank of Algeria: daily exchange rates Official source · checked 2 October 2026