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Countries with no income tax on salaries in 2026

Hani · Founder & Tax Data Researcher · ArabTaxCalc

This list covers the 23 Arab countries on this site and the 20 countries most Gulf hires come from. All of the countries without income tax on salaries are in the Gulf.

Short answer

In 2026, 6 of the countries we cover do not tax employees' salaries: Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain. No income tax does not mean nothing is deducted: nationals usually pay pension contributions, and most of these countries charge VAT on spending.

CountryDeducted from employeesVATCorporate taxEnd-of-service
🇸🇦 Saudi ArabiaExpats 0%, Saudi nationals 9.75% (annuities 9% + SANED 0.75%), or 10.5% on average in 2026 for those under the new system15%20%Calculate
🇦🇪 United Arab EmiratesExpats 0% (apart from unemployment insurance of 5 or 10 dirhams a month), UAE nationals 5% under the old law or 11% under the new law5%9%Calculate
🇶🇦 QatarExpats 0%, Qatari nationals 7%, capped at 100,000 Qatari riyals a monthNone10%Calculate
🇰🇼 KuwaitExpats 0%, Kuwaitis 10.5% on the first 1,500 dinars and 8% on the part above that, up to 2,750 dinarsNone15%Calculate
🇴🇲 OmanExpats 0%, Omanis 8% (7.5% old age, disability and death + 0.5% job security)5%15%Calculate
🇧🇭 BahrainExpats 1% (unemployment insurance), Bahrainis 8% (7% pension + 1% unemployment)10%-Calculate

What expats still pay in a no-tax country

Frequently asked questions

Which Arab countries have no income tax?

In 2026, 6 of the countries we cover do not tax employees' salaries: Saudi Arabia, the UAE, Qatar, Kuwait, Oman and Bahrain. No income tax does not mean nothing is deducted: nationals usually pay pension contributions, and most of these countries charge VAT on spending.

Will Oman introduce income tax?

Oman issued its Personal Income Tax Law by Royal Decree 56/2025, and it takes effect on 1 January 2028. The rate is 5% on income above 42,000 Omani rials a year, and it applies to Omanis and non-Omanis alike. Residents who spend more than 183 days in Oman are taxed on income from Oman and abroad. In 2026 there is no income tax on salaries in Oman.

Do expats pay anything in countries with no income tax?

Usually nothing is deducted from their salary, but they pay VAT on purchases and, in some countries, government fees such as residence and dependant fees.

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