UAE has no personal income tax — for any resident, regardless of nationality. Salary, bonuses, rental income, capital gains, dividends, and interest are all completely tax-free for individuals. This was confirmed by the UAE Federal Tax Authority and has not changed with the 2023 corporate tax reform. On a $100,000 USD salary: take-home = $100,000. The same salary in the UK yields ~$67,000 after income tax and NI. In California: ~$68,000. The UAE advantage at $100k is worth roughly $30,000–35,000 per year compared to a high-tax Western country. Key things to understand beyond the zero tax headline: (1) 5% VAT applies on most goods and services (introduced 2018). (2) Corporate tax of 9% was introduced in June 2023 for businesses with annual profits above AED 375,000 — individuals' employment and investment income remain exempt. (3) End-of-service gratuity (EOSB): all UAE employees who complete one year of service are entitled to a gratuity payment on departure — 21 days of basic salary per year for the first 5 years, then 30 days per year. This is a significant deferred benefit often overlooked when comparing UAE to Western compensation packages. (4) Social security applies only to UAE nationals: 5% employee + 12.5% employer contribution (federal rate). Expats and non-GCC nationals pay nothing.
CountryTaxCalc.com is reader-supported. When you use our partner links, we may earn a commission at no cost to you. This helps us provide free tax calculators and comparison tools. Learn more about our affiliate partnerships
★ 4.3 Trustpilot · 287,413 reviews
Transfer money to or from UAE at the real exchange rate. Save up to 5x vs banks on AED transfers.
⚠ For currency exchange only — not a bank account replacement.
Send Money To/From UAE →★ 4.8 Trustpilot · 1,625 reviews
US citizen living in UAE? You still owe US taxes on worldwide income. Get expert help with your FEIE/FTC filing from abroad.
⚠ Not the cheapest option — best for complex situations and expats who want a dedicated CPA.
US Citizens: File Your US Taxes →★ 4.7 Trustpilot · 8,728 reviews
Working as a contractor in UAE? Deel handles compliant payroll, end-of-service gratuity accrual, and international payments.
⚠ For employers and companies only — not for individual freelancers or employees.
Get Paid as a Contractor in UAE →Interested in reaching this audience? Advertise on CountryTaxCalc →
No. There is no personal income tax in the UAE for 2026, confirmed by the UAE Federal Tax Authority: 'There is currently no personal income tax in the United Arab Emirates. As such, there are no individual tax registration or reporting obligations.' This covers all residents regardless of nationality — salary, bonuses, rental income, capital gains, dividends, and interest are all tax-free for individuals. The 2023 corporate tax reform (9% on business profits over AED 375,000) did not affect personal employment or investment income.
End-of-service gratuity (EOSB) is a mandatory benefit under UAE Labour Law that applies to all employees who complete one year of service: 21 calendar days of basic salary per year of service for the first 5 years; 30 calendar days of basic salary per year for each year beyond 5. The total is capped at 2 years' total salary. Gratuity is calculated on basic salary only (excluding allowances, bonuses, and overtime). For example: an employee earning AED 20,000/month basic salary who completes 3 years receives: 21 days × (20,000/30) × 3 = AED 42,000. DIFC employees use a different scheme (DEWS — employer contributes 5.83%/month for first 5 years, 8.33% thereafter). ADGM uses its own equivalent. Gratuity is paid by the employer on termination, resignation, or expiry of contract.
No. Non-GCC expatriates pay zero social security in the UAE — neither employee nor employer contributions apply. UAE national employees are subject to pension contributions: 5% employee + 12.5% employer at the federal level, with Abu Dhabi nationals contributing to GPSSA (General Pension and Social Security Authority) at slightly different rates (employer 15% + government 6%). GCC nationals follow their home country's social insurance rules. This makes UAE exceptionally competitive for expat compensation packages — the full salary is take-home, and the employer's social security saving also makes UAE-based staff cheaper to employ than equivalents in Europe.
The UAE corporate tax (9% on business profits above AED 375,000, introduced June 2023) does not affect employment income. If you receive a salary from a UAE employer, your take-home remains 100% of gross — the corporate tax is paid by the employing company on its profits, not deducted from wages. The corporate tax only becomes relevant if you are running your own business in the UAE. Free zone companies meeting qualifying conditions (no mainland business activities) continue to pay 0% corporate tax. The first AED 375,000 of business profits remains tax-free for all businesses.
The Golden Visa offers 10-year renewable UAE residency (no employer requirement) for: investors (AED 2M+ property or business capital), entrepreneurs, specialized talents (doctors, scientists, artists), outstanding students, and humanitarian pioneers. Tax implications: UAE residency qualifies you for a UAE Tax Residency Certificate (TRC) from the Ministry of Finance after 183+ days of presence. A TRC is used to claim treaty benefits in your home country — particularly useful for UK, German, French, or other nationals who need to demonstrate UAE residency to reduce home-country tax on UAE-sourced income. UAE has tax treaties with approximately 137 countries.
While income is tax-free, UAE residents do pay: (1) VAT at 5% on most goods and services (introduced January 2018; basic food, healthcare, and education are zero-rated or exempt). (2) Municipality/housing fee — typically 5% of annual rent, collected by landlords for Dubai Municipality or Abu Dhabi Municipality. (3) Tourism and hotel levies — vary by emirate. (4) Vehicle registration fees. There is no property purchase tax (though there is a 4% Dubai Land Department transfer fee on property purchases). No inheritance tax, no gift tax, no wealth tax, no capital gains tax.
Effective rates, what the headline hides, 111+ countries. Every two weeks, free.
Bi-weekly. No spam. Unsubscribe in one click.
Last Updated: May 2026