Tax Calculator Ethiopia 2026 — Employment, Rental & Business Tax
Calculate employment income tax, rental income tax, and business profit tax under Ethiopian Tax Proclamation No. 979/2016. Fast, free online tax estimator in Ethiopian Birr (ETB).
Tax Calculator Ethiopia
Methodology
Ethiopian tax law classifies income into distinct schedules: Schedule A (Employment Income), Schedule B (Rental Income), and Schedule C (Business Profit). Progressive tax rates apply from 0% to 35%. Rental income allows a 50% statutory maintenance deduction if receipts are not maintained.
-
01
User-provided inputs
This calculator uses only the values you enter. It does not automatically apply tax law, statutory deductions, lender fees, or live exchange rates.
-
02
Formula basis
The formula is shown openly and no country rate is inserted automatically.
-
03
Your estimate
AfricalHub is an independent private platform not affiliated with any government agency. Calculations are for educational planning only. Verify official filings with the relevant revenue authority or a qualified professional.
Ethiopian Income Tax Proclamation No. 979/2016 Progressive Rate Schedules
| Monthly Taxable Income (ETB) | Tax Rate (%) | Deduction Formula (ETB) |
|---|---|---|
| 0 – 600 ETB | 0% (Exempt) | 0.00 |
| 601 – 1,650 ETB | 10% | (Income × 10%) - 60.00 |
| 1,651 – 3,200 ETB | 15% | (Income × 15%) - 142.50 |
| 3,201 – 5,250 ETB | 20% | (Income × 20%) - 302.50 |
| 5,251 – 7,800 ETB | 25% | (Income × 25%) - 565.00 |
| 7,801 – 10,900 ETB | 30% | (Income × 30%) - 955.00 |
| Over 10,900 ETB | 35% | (Income × 35%) - 1,500.00 |
Sources
User-provided inputs
This calculator uses only the values you enter. It does not automatically apply tax law, statutory deductions, lender fees, or live exchange rates.
Frequently asked questions
How is rental income tax calculated in Ethiopia?
If you do not maintain formal accounting records, the law grants an automatic 50% deduction on gross rental revenue for repairs and maintenance. The remaining 50% is taxed according to progressive personal income tax brackets.
What are Category A, B, and C taxpayers in Ethiopia?
Category A: Annual turnover of 2,000,000 ETB or more (required to keep complete books of accounts). Category B: Turnover between 500,000 and 2,000,000 ETB. Category C: Turnover under 500,000 ETB.
What is the corporate profit tax rate in Ethiopia?
Incorporated private limited companies (PLC) and share companies (S.C.) pay a flat corporate income tax of 30% on net taxable profits.