Ethiopian income tax rate table in a progressive tax system, meaning that the rate of taxation increases as the income of an individual or entity increases. Below is a simplified version of the income tax rate table for individuals in Ethiopia:
Ethiopian Income Tax Rate Table for Individuals (2024)
| Monthly Income (ETB) | Tax Rate | Tax Amount on Income Exceeding Lower Bracket (ETB) |
|---|---|---|
| 0 – 600 | 0% | 0 |
| 601 – 1,650 | 10% | 60 |
| 1,651 – 3,200 | 15% | 153 |
| 3,201 – 5,250 | 20% | 415 |
| 5,251 – 7,800 | 25% | 850 |
| 7,801 – 10,900 | 30% | 1,425 |
| Over 10,900 | 35% | – |
Example Calculation
For a monthly income of 7,000 ETB:
-
- The first 600 ETB is taxed at 0%: 0 ETB
- The next 1,050 ETB (601-1,650) is taxed at 10%: 105 ETB
- The next 1,550 ETB (1,651-3,200) is taxed at 15%: 232.5 ETB
- The next 2,050 ETB (3,201-5,250) is taxed at 20%: 410 ETB
- The remaining 1,750 ETB (5,251-7,000) is taxed at 25%: 437.5 ETB
Total Tax Payable = 0 + 105 + 232.5 + 410 + 437.5 = 1,185 ETB
Notes:
- This table is applicable for the year 2024 and may be subject to changes by the Ethiopian Revenue and Customs Authority.
- Taxpayers should always verify the rates with the latest government publications or consult a tax professional for accurate tax calculations.
This table offers a clear understanding of how income tax is calculated in Ethiopia, enabling individuals to better manage their finances and plan for their tax obligations.
