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United Arab Emirates income tax: 1-band system with a top rate of 0%
The Income Tax applies a 1-band progressive structure. The top rate of 0% applies above AED0.
Source: United Arab Emirates Income Tax official rates 2026
Corporate Tax: two-band structure keeps smaller companies at 0%
The Corporate Tax applies 0% on the first AED3.000.000 of taxable profit and 9% on profits above that threshold.
Source: United Arab Emirates Corporate Tax official rates 2026
No statutory national minimum wage in United Arab Emirates
The UAE does not have a statutory national minimum wage. The UAE Labour Law requires salaries to broadly meet basic needs but does not specify a numerical threshold.
Source: United Arab Emirates labour authority
2025 inflation at 2,0% - the key index for United Arab Emirates wage and cost planning
Federal Competitiveness and Statistics Centre (FCSC) recorded 2,0% annual CPI inflation in 2025. This figure is directly relevant for United Arab Emirates wage negotiation benchmarks, benefit indexation and cost-of-living planning in 2026. Salary increases below 2,0% represent a real-terms pay reduction. Household budgeting for rent, food and utilities should account for the cumulative effect of recent inflation across 4 years.
Source: Federal Competitiveness and Statistics Centre (FCSC)
United Arab Emirates Corporate Tax Rates 2026 (%)
Corporate Tax
📋 Reference Data
United Arab Emirates 2026 Income Tax Bands (Income Tax)
United Arab Emirates tax authority - official 2026 rates
| Band | Taxable income range | Rate | Applies to |
|---|---|---|---|
| National Personal Income Tax - 0% | Above AED0 | 0% | Tax-free zone |
ⓘ Marginal rates shown. Effective rates are lower due to credits and deductions.
United Arab Emirates 2026 Corporate Tax Rates (Corporate Tax)
United Arab Emirates tax authority - official 2026 corporate tax rates
| Rate type | Profit range | Rate | Tax name |
|---|---|---|---|
| Small Business Relief | AED0 - AED3.000.000 | 0% | Corporate Tax |
| Standard corporate tax rate | Above AED3.000.000 | 9% | Corporate Tax |
ⓘ Rates apply to qualifying United Arab Emirates corporate entities.
United Arab Emirates 2026 Complete Tax & Benefit Reference
Compiled from official United Arab Emirates government and statistical sources
| Metric | Value | Institution | Confidence |
|---|---|---|---|
| Corporate tax main rate | 9% | Corporate Tax | Official |
| Corporate tax low rate | 0% | Corporate Tax | Official |
| Corporate tax low threshold | AED3.000.000 | Corporate Tax | Official |
| Inflation 2025 | 2,0% | Federal Competitiveness and Statistics Centre (FCSC) | Official |
ⓘ All figures are sourced from the responsible United Arab Emirates institution for the 2026 rule year.
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🔬 Methodology & Sources
Data Sources and Verification
All figures on this page are sourced directly from the responsible United Arab Emirates government institutions for the 2026 rule year. Income tax rates are taken from the official tax authority publications. Corporate tax rates are sourced from the relevant business tax authority. Minimum wage figures are from the government ministry responsible for labour law. Inflation data is from the national statistics institute. All values are cross-referenced against official published rates and verified as of the retrieval date shown in the sources section.
Formula
Effective income tax = sum_of(income_in_band × band_rate) - tax_credits | Corporate tax = sum_of(profit_in_band × band_rate)
CitationMinistry of Finance (MoF); Federal Tax Authority (FTA); Ministry of Human Resources and Emiratisation (MOHRE); General Pension and Social Security Authority (GPSSA); Federal Competitiveness and Statistics Centre (FCSC). Retrieved 2026.
❓ Frequently Asked Questions
In 2026, the Income Tax applies a 1-band progressive structure. The top rate of 0% applies to income above AED0. For exact take-home calculations, use the dedicated United Arab Emirates net salary calculator.
The Corporate Tax applies 0% on the first AED3.000.000 of taxable profit and 9% on profits above that. The two-band structure benefits smaller profitable companies that operate within the lower threshold.
The UAE does not have a statutory national minimum wage. The UAE Labour Law requires salaries to broadly meet basic needs but does not specify a numerical threshold.
Federal Competitiveness and Statistics Centre (FCSC) recorded 2,0% annual CPI inflation in 2025. For United Arab Emirates employees, this means that salary increases below 2,0% represent a real-terms pay reduction in purchasing power. Collective agreements, benefit indexation, rent escalation clauses and cost-of-living modelling for 2026 should all reference this figure. Cumulative inflation since 2021 has been more substantial - approximately 8,2% over four years using this rate as a proxy.
This 2026 United Arab Emirates tax reference covers income tax bands, corporate tax rates and inflation from official sources. These are the headline figures used for salary planning, founder structuring and business cost modelling in United Arab Emirates. Use the tables on this page for exact rates and thresholds.
The marginal rate is the rate applied to the next euro of taxable income - in United Arab Emirates, this is 0% at the top. The effective rate is the average across all income: for a United Arab Emirates resident earning an average salary gross annually, the effective income tax rate is substantially lower than 0% because most of the income falls in lower bands. Tax credits and deductions reduce the effective rate further.
Self-employed individuals in United Arab Emirates are generally subject to Income Tax on their business profit under the income tax system. Unlike employees, self-employed workers are responsible for their own social security contributions. The Income Tax bands of 0% to 0% apply to net business income after allowable deductions. Many self-employed individuals in United Arab Emirates operate through a corporate structure to benefit from the lower Corporate Tax rate of 0%.
Yes. The Corporate Tax low rate of 0% on the first AED3.000.000 of taxable profit is one of the key incentives for operating as a company in United Arab Emirates. Once profit exceeds AED3.000.000, the excess is taxed at 9% - making the blended effective rate dependent on total profit. For founders and SMEs, careful profit planning around the AED3.000.000 threshold is a common tax strategy.
The figures shown are based on official publications from the responsible United Arab Emirates government institutions: Ministry of Finance (MoF), Federal Tax Authority (FTA), Ministry of Human Resources and Emiratisation (MOHRE). All values reflect the 2026 rule year. This page is for informational purposes - personalised tax outcomes depend on individual income, deductions, household structure and business circumstances. Always consult a qualified United Arab Emirates tax adviser for personal advice.
Sources & References
Data sourced from official institutional publications. Results are for informational purposes only. Last reviewed Jun 2026.
Data Disclaimer
This page is for informational purposes only. Actual tax outcomes depend on personal income, household composition, available deductions, eligibility for allowances and official assessment rules. Always consult a qualified United Arab Emirates tax adviser for personalised advice.
This page is for informational purposes only. Actual tax outcomes depend on personal income, household composition, available deductions, eligibility for allowances and official assessment rules. Always consult a qualified United Arab Emirates tax adviser for personalised advice.