Ethiopia tax guide
Planning reference for Ethiopia using ETB salary values.
This is not an official government calculation. Confirm final details with PwC Worldwide Tax Summaries - Ethiopia or a qualified tax professional.
Model coverage
A source-reviewed simplified salary model is available in the calculator.
Scope: Ethiopian-citizen private-organisation employee receiving the same regular salary each month. Monthly employment-tax bands are annualised. The mandatory 7% employee pension contribution is included; foreign employees may have a different pension profile.
Reference details
| Currency | ETB |
|---|---|
| National tax label | Employment Income Tax |
| Personal allowance | Not modeled |
| Employee contributions | Employee pension contribution: 7% of basic salary for the standard Ethiopian-citizen profile. |
| Last source review | 2026-07-23 |
Modeled national brackets
| Band | Rate | Reference threshold |
|---|---|---|
| 1 | 0.0% | Up to 24,000 ETB |
| 2 | 15.0% | Up to 48,000 ETB |
| 3 | 20.0% | Up to 84,000 ETB |
| 4 | 25.0% | Up to 120,000 ETB |
| 5 | 30.0% | Up to 168,000 ETB |
| 6 | 35.0% | Top bracket and above |
Official source
PwC Worldwide Tax Summaries - Ethiopia: https://taxsummaries.pwc.com/ethiopia/individual/other-taxes
Tax rules, thresholds, allowances, and contribution limits can change. Use the official source above to verify the current rules before making a financial decision.