Taxes on salaries in the UAE 2026

Is there tax on salaries in the UAE?

No. The UAE has no income tax on individual salaries in 2026, whether you are a national or a resident. The corporate tax that started in 2023 falls on business profits and does not cover the salary from your job.

So employees do not file a tax return for their salary. What is deducted from pay is the pension contribution for nationals and a small unemployment insurance premium for everyone.

How much is deducted from a national's salary for pensions?

There are two systems. Anyone registered with the General Pension and Social Security Authority (GPSSA) before 31 October 2023 stays under Federal Law No. 7 of 1999: 5% is deducted from the employee, the private sector employer pays 12.5% and the government pays 2.5%. In the private sector the contribution is charged on the contract salary including allowances.

Anyone who joined the labour market for the first time on or after 31 October 2023 falls under Decree-Law No. 57 of 2023: the contribution is 26%, of which 11% is paid by the employee and 15% by the employer, and the government covers 2.5% of the private sector employer's share if the salary is below 20,000 dirhams. The salary used for contributions is between 3,000 and 70,000 dirhams a month.

Nationals of the Emirate of Abu Dhabi belong to the Abu Dhabi Pension Fund, which has different rates, so this calculator does not cover them.

Do expats pay social insurance in the UAE?

Expats do not pay pension contributions and do not get a retirement pension from the GPSSA. But like nationals, since 2023 they must join the Involuntary Loss of Employment (unemployment insurance) scheme: category one is 5 dirhams a month plus VAT for basic pay of 16,000 dirhams or less, and category two is 10 dirhams for basic pay above that.

The insurance pays 60% of average basic pay for up to 3 months, capped at 10,000 dirhams a month for category one and 20,000 for category two, provided you have contributed for 12 consecutive months. Investors, domestic workers, people on temporary contracts, under-18s and working retirees are exempt.

How do I calculate end-of-service gratuity in the UAE?

Article 51 of Federal Decree-Law No. 33 of 2021 says a full-time foreign worker who has completed one year of continuous service is entitled to 21 days' pay for each of the first 5 years and 30 days' pay for each year after that, based on the last basic pay, with part years counted pro rata. The total gratuity cannot exceed two years' pay.

Example: basic pay of 10,000 dirhams and 6 years of service: 5 × 21 days = 35,000 dirhams, plus 10,000 for the sixth year, so 45,000 dirhams in total. The current law does not reduce the gratuity when you resign, as the old law did.

Nationals do not get the gratuity from the employer; they receive end-of-service benefits under the pension laws.

What is corporate tax and does it affect employees?

UAE corporate tax under Decree-Law No. 47 of 2022 is 0% on taxable profit up to 375,000 dirhams and 9% on anything above. For financial years starting on or after 1 January 2025, the country also applies a domestic minimum top-up tax that brings the effective rate to 15% for multinational groups with revenue of 750 million euros or more.

This tax is not deducted from salaries. An employee who only earns a salary does not register for it.

VAT in the UAE

The standard rate is 5%, run by the Federal Tax Authority. Some supplies are zero-rated, such as exports and some education and healthcare services.

Note that the unemployment insurance premium itself has 5% VAT added to it.

Freelancing in the UAE

An individual carrying on a licensed business or professional activity may be subject to corporate tax on the profits of that activity if its revenue passes the threshold set by Cabinet Decision; salary does not count towards this. They may also need to register for VAT if their supplies pass the registration threshold.

If you are only an employee, you have no tax obligations.

Practical tips for employees in the UAE

The end-of-service gratuity is calculated on basic pay only, so a contract with low basic pay and high allowances means a smaller gratuity. Check your contract and payslip and confirm your basic pay.

Make sure your unemployment insurance is renewed: not subscribing exposes you to a fine, and you can only claim after 12 consecutive months. If you are a national, find out whether you are under the old or the new law, because the difference in the deduction is 6% of your salary.

What changed in 2026?

• No change to pension rates for 2026: 5% for nationals under Law No. 7 of 1999, and 11% under Decree-Law No. 57 of 2023 for those who started work from 31 October 2023.
• The 15% domestic minimum top-up tax applies to large multinational groups for financial years from 1 January 2025 and has no effect on salaries.
• There is no income tax on salaries in 2026.

For expats

For expats in the UAE: there is no tax on your salary and no pension contribution; the only mandatory deduction is the unemployment insurance premium. Your most important right when you leave a job is the end-of-service gratuity on basic pay, so make sure your basic pay is clearly stated in your contract. Money you send home is not subject to UAE tax. Because the UAE does not tax salaries, you will not usually need a double tax treaty for your pay, but if you are still tax resident in your home country, check its rules.

Income tax rates

UAE does not tax employees' salaries in 2026. The only possible deduction is a social insurance or pension contribution, which can differ between nationals and expats.

Other taxes that matter in United Arab Emirates

Capital gains

The UAE has no personal income tax, so there is no tax on gains an individual makes from selling listed or unlisted shares or property as a personal investment. The 9% corporate tax reaches an individual only if they carry on a business with turnover above 1 million dirhams a year, and the ministerial decision expressly excludes wages, personal investment income and income from unlicensed real estate investment.

Dividends

No tax is withheld from dividends received by a resident individual, because the UAE has no personal income tax, and these dividends count as personal investment income outside the scope of corporate tax.

Crypto

Trading and holding virtual assets is allowed and regulated: by the Virtual Assets Regulatory Authority (VARA) in Dubai outside the Dubai International Financial Centre, by the Financial Services Regulatory Authority in Abu Dhabi Global Market, and by the Securities and Commodities Authority at federal level. No income tax applies to individuals' crypto gains as long as they are a personal investment and not a licensed business.

Inheritance

There is no estate, inheritance or gift tax. Muslims' estates are divided under the Islamic inheritance rules in the Personal Status Law. Non-Muslims can follow the federal Civil Personal Status Law (Decree-Law No. 41 of 2022) or Abu Dhabi Law No. 14 of 2021, which allow a will covering all assets and split the estate equally between men and women when there is no will.

Property and wealth

There is no annual property tax and no wealth tax. In Dubai, a registration fee of 4% of the sale value is paid to the Dubai Land Department when ownership is transferred; it is a fee, not a tax. Tenants pay Dubai Municipality a housing fee of 5% of the annual rent, added to the electricity and water bill.

Tax residency

Under Cabinet Decision No. 85 of 2022 and Ministerial Decision No. 27 of 2023, an individual is tax resident if any one of three conditions is met: physical presence in the country for 183 days or more in any 12 consecutive months; or 90 days or more in any 12 consecutive months while holding UAE nationality, a valid residence permit or the nationality of a GCC state, provided they have a permanent place of residence or carry on employment or a business in the country; or if their usual or primary place of residence and their centre of financial and personal interests are both in the UAE. Any part of a day counts as a full day, and the days do not need to be consecutive. The Federal Tax Authority issues tax residency certificates through the EmaraTax platform. The fees are 50 dirhams to apply, then 1,000 dirhams for an individual not registered with the authority (500 dirhams for someone with a corporate tax registration number), and 250 dirhams for each hard copy. The certificate covers a 12-month period chosen by the applicant, current or past but not future. You need your Emirates ID or passport plus an entry and exit report, and issuing takes about 10 working days.

Retirement and pensions

Local and foreign pensions are not subject to income tax in the UAE. The retirement visa lasts 5 years, renewable, for people aged 55 or over who have worked at least 15 years, provided they own property worth at least 1 million dirhams together with savings of at least 1 million dirhams, as the official portal words it, or have annual income of at least 180,000 dirhams (240,000 dirhams when applying in Dubai). Nationals contribute to the pension scheme of the General Pension and Social Security Authority, and Abu Dhabi nationals have their own pension fund.

Cost to the employer

For a UAE national who first started work on or after 31 October 2023 (Decree-Law No. 57 of 2023), contributions total 26%: 11% from the employee and 15% from the employer, with the government paying 2.5% of the employer's share if the contribution salary is below 20,000 dirhams. The private sector contribution salary is between 3,000 and 70,000 dirhams a month. Those who started earlier stay under the previous law (5% employee, 12.5% employer and 2.5% government). The employer pays no pension contribution for an expat employee; instead the expat is entitled to an end-of-service gratuity of 21 days' basic pay for each of the first five years and 30 days for each year after that, capped at two years' pay. In the Dubai International Financial Centre this is replaced by the DEWS savings scheme.

Remote work visa

Remote work visa (virtual residence): Monthly income of at least 3,500 US dollars or the equivalent, with proof of employment with an employer outside the country and valid health insurance. No personal income tax applies to the salary the visa holder earns from abroad. Staying 183 days or more makes them tax resident in the UAE, but that does not automatically cancel tax in their home country; that depends on their home country's laws and tax treaties.

Social insurance

Sources

1. 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) Official source · checked 2 October 2026
2. 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) Official source · checked 2 October 2026
3. 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) Official source · checked 2 October 2026
4. Involuntary Loss of Employment (ILOE) insurance scheme: categories and premiums Official source · checked 2 October 2026
5. Ministry of Finance: Federal Decree-Law No. 47 of 2022 and its amendments, Article 3 (0%, 9%, and 15% for multinational groups) Official source · checked 2 October 2026
6. Ministry of Finance: Domestic Minimum Top-up Tax, in force for financial years starting from 1 January 2025 Official source · checked 2 October 2026
7. PwC Worldwide Tax Summaries: the 375,000 dirham threshold for the 0% rate (secondary source, used as a cross-check) Secondary source used to cross-check · checked 2 October 2026