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ComorosHow is income tax on salaries worked out in Libya?
Tax on salaries and wages is governed by Law No. 7 of 2010 on Income Taxes. Start with gross salary and deduct the social security and Solidarity Fund contributions, then the personal exemption for your family status.
A rate of 5% applies to the first 12,000 dinars a year of what is left (1,000 dinars a month), and 10% to anything above that.
Example: a salary of 2,000 dinars a month for a single person. 75 dinars go to social security and 20 dinars to the Solidarity Fund, and the exemption of 150 dinars a month comes off, leaving a tax base of 1,755 dinars. Tax is 50 dinars on the first 1,000 and 75.50 on the rest, or 125.50 dinars, and net pay is about 1,780 dinars.
How much do social security and the Solidarity Fund take?
According to the Social Security Fund's table, the total contribution for staff of national bodies and companies is 15% of salary: the employee pays 3.75%, the employer 10.5% and the public treasury 0.75%. Of the employee's share, 2.625% goes to the basic pension.
At foreign companies, the employee's share stays at 3.75% and the employer pays 11.25%.
On top of this, 1% of the total income of all workers, in the public or private sector, goes to the Social Solidarity Fund under Law No. 10 of 2009.
What is the personal exemption in salary tax?
A fixed amount comes off the tax base before tax is worked out. According to PwC's summary of the 2010 law, it is 1,800 dinars a year (150 a month) for a single person and 2,400 dinars (200 a month) for a married person without children, plus 300 dinars a year (25 a month) for each child.
We could not check these amounts against the text of the law itself, so we show them as coming from a secondary source. The calculator assumes a single person.
Is the jihad tax still applied?
The jihad tax was introduced by Law No. 44 of 1970 as an extra tax on salaries and profits for the Jihad Fund, and the law is still listed among the legislation on the Tax Authority's website.
We found no available official text confirming whether it has been abolished or still applies, or its current rates in 2026, and recent professional summaries do not list it among salary deductions. So this calculator does not apply it; check your payslip or ask the Tax Authority.
What changed in 2026?
We found no published change to salary tax rates or to social security and solidarity contributions taking effect in 2026. The rates shown are those in force under Law No. 7 of 2010 and the Social Security Fund table in effect since August 2015.
Given the institutional situation in Libya, the Tax Authority or the Ministry of Finance may issue instructions whose full text is not published online, so check your payslip if you see a difference.
How are foreign workers treated in Libya?
A foreigner working in Libya pays salary tax and the Solidarity Fund contribution in the same way. The social security split depends on the employer: at foreign companies the employer pays a larger share.
Double tax treaties or bilateral social security agreements between Libya and some countries may have special provisions, so it is worth checking them before signing a contract.
What about the self-employed?
Self-employed people pay most of their social security contribution themselves, with the public treasury paying a small part, under a separate rate table for this group at the Social Security Fund.
Profits from business and professional activities follow other provisions of the Income Tax Law, and this calculator does not work them out.
Practical tips
Check that your payslip shows separate lines for social security, the Solidarity Fund and income tax. If you are married or have children, make sure your employer applies the higher exemption.
When converting your salary into a foreign currency, note that the official rate of the Central Bank of Libya may differ from the market rate.
For expats
Libyans living in Tunisia, Egypt, Turkey and the United Kingdom usually pay income tax on their salaries in the country where they work. Foreign workers in Libya, including Egyptians, Tunisians and Sudanese, have income tax and the Solidarity Fund contribution deducted from their salaries just like Libyans, and the social security split depends on the nationality of the employer. Sending part of your salary to family is not taxable income, but transfers are subject to the Central Bank of Libya's rules on foreign currency and exchange rates.
Income tax rates
| Annual taxable income (LYD) | Rate |
|---|---|
| 0 to 12,000 | 5% |
| Over 12,000 | 10% |
The two rates apply to pay after deducting the social security contribution, the solidarity fund contribution and the personal exemption (1,800 dinars a year for a single person, 2,400 for a married person and 300 per child, according to a secondary source). The first bracket runs up to 12,000 dinars a year, that is 1,000 dinars a month.
Other taxes that matter in Libya
Capital gains
Income Tax Law No. 7 of 2010 has no separate capital gains tax for individuals. Gains on selling business assets are taxed as part of business profits, and dividing up and selling land counts as a commercial activity taxed at 15%. Article 46 taxes any income from a source not covered by another specific tax, even if occasional, at the 15% business profits rate. We could not confirm how the Tax Authority applies this when an individual sells shares or property they own.
Dividends
Article 34 of the Income Tax Law states that the rules on individuals' tax do not apply to income that companies subject to corporate tax distribute to shareholders, so dividends are not taxed in the individual's hands. Interest on bank deposits is taxed at 5%, while savings accounts are exempt.
Crypto
Several press reports say the Central Bank of Libya banned dealing in cryptocurrencies in 2018 because of money laundering and terrorist financing risks; we did not find the text of the statement on the bank's website. There are no tax rules for individuals' crypto.
Inheritance
We found no estate or gift tax in the Income Tax Law, but it requires a return on the deceased's income up to the date of death, with the tax paid within 6 months and before the estate is divided. Inheritance follows Islamic sharia.
Property and wealth
There is no annual wealth or property tax, according to PwC's summary (secondary source), and stamp duty is charged on a number of transactions and contracts. We could not confirm property registration fees from an official source.
Tax residency
The Income Tax Law does not define tax residency by a set number of days; tax is charged on income earned in Libya. Article 33 exempts the foreign income of Libyans and of foreigners resident in Libya. We could not verify from an official source how the Libyan Tax Authority issues tax residency certificates.
Retirement and pensions
Article 33 of the Income Tax Law exempts income from basic and retirement pensions, and also exempts the foreign income of Libyans and resident foreigners, so under the text foreign pensions are not taxed. We found no retirement visa on any official portal.
Cost to the employer
According to PwC's summary reviewed in May 2026 (secondary source), social security contributions come to 20.5% of pay: 14.35% from a Libyan employer (15.375% for the branch of a foreign company), 5.125% from the employee and 1.025% from the public treasury, plus 1% from the employee for the Solidarity Fund. Social Security Law No. 13 of 1980 leaves contribution amounts to the regulations, and we could not confirm the current rates or any ceiling from an official source.
Social insurance
| Contribution | Employee | Employer | Applies to | Cap |
|---|---|---|---|---|
| Social security (includes 2.625% for the basic pension) | 3.8% | 10.5% | Employees of public bodies and national companies | Total contribution 15%: employee 3.75%, employer 10.5%, public treasury 0.75%. For foreign companies the employer pays 11.25% |
| Social Solidarity Fund | 1% | 0% | All workers in the public and private sectors | On total income |
Work out your own pay in Libya
Instant result, monthly and yearly, with every deduction itemised.
Common questions about taxes in Libya
What is the income tax on salaries in Libya in 2026?
5% on the first 12,000 LYD a year of taxable income and 10% above that, after deducting social security, the Solidarity Fund and the personal exemption. These rates are from Law No. 7 of 2010, according to a secondary summary.
How much is left from a 2,000 dinar salary in Libya?
For a single person, about 1,780 LYD a month is left: 75 LYD for social security, 20 for the Solidarity Fund and about 125.50 in income tax.
How much is left from a 1,000 dinar salary?
About 912 LYD a month: 37.50 for social security, 10 for the Solidarity Fund and about 40 LYD in income tax.
What is the social security rate in Libya?
The total contribution is 15% for staff of national bodies: 3.75% from the employee, 10.5% from the employer and 0.75% from the public treasury, according to the Social Security Fund's table.
What is the Social Solidarity Fund and how much does it take?
It is a public fund for solidarity and social welfare, financed by a 1% contribution from the total income of all public and private-sector workers, under Law No. 10 of 2009.
Is the jihad tax still deducted from salaries?
We could not confirm this from an available official source. Law No. 44 of 1970 is still listed on the Tax Authority's website, but recent summaries do not mention it, so this calculator does not include it.
What is the personal income tax exemption in Libya?
According to a secondary source: 1,800 LYD a year for a single person, 2,400 for a married person and an extra 300 for each child, deducted from the tax base before tax is worked out.
Is there VAT in Libya?
There is no general VAT, but there are other duties and taxes, such as stamp duty and customs duties.
Is tax different for foreign workers in Libya?
Salary tax and the solidarity rate are the same. The employee's social security share is also 3.75%, but foreign companies pay a higher employer share (11.25%) than national employers.
Sources
- Tax Authority: list of laws (Law No. 7 of 2010 on income taxes and its executive regulation are listed but the files could not be downloaded) Official source · checked 2 October 2026
- PwC Worldwide Tax Summaries, Libya: rates of 5% and 10% and the 12,000 dinar bracket (reviewed 31 May 2026) Secondary source used to cross-check · checked 2 October 2026
- PwC Worldwide Tax Summaries, Libya: personal exemptions of 1,800 and 2,400 dinars Secondary source used to cross-check · checked 2 October 2026
- Social Security Fund: contribution rates table (from 1 August 2015 to now): 15%, of which 3.75% on the insured person, 10.5% on the national employer and 0.75% on the treasury Official source · checked 2 October 2026
- PwC Worldwide Tax Summaries, Libya: gives a rate of 20.5% (5.125% for the employee), which conflicts with the Fund table Secondary source used to cross-check · checked 2 October 2026
- Decision No. 182 of 1991 of the Secretary of the People's Committee of the Social Security Fund: contribution split 25% on the insured person, 70% on the national employer and 5% on the treasury (published on the Tax Authority website) Official source · checked 2 October 2026
- Law No. 10 of 2009 amending Law No. 20 of 2007 on the Social Solidarity Fund, article 3: contribution of 1% of the total income of workers (published on the Tax Authority website) Official source · checked 2 October 2026
- Central Bank of Libya: exchange rates Official source · checked 2 October 2026