Income tax in Saudi Arabia 2026

Your salary in Saudi Arabia is taxed at exactly 0% — no income tax, no payroll income withholding, no return — whatever your nationality or pay level.

Tax reaches individuals only through business: a resident non-Saudi running a business, or a non-resident with a permanent establishment, pays 20% on profits under company rules, while Saudi and Gulf-national business owners pay the 2.5% Zakat levy.

At a glance

top rate: 0% personal; 20% business (2.5% Zakat for Saudi/Gulf nationals)
entry band: 0%
tax year basis: Calendar year (business activity only)
filing deadline: No personal return; business filers follow the corporate calendar
residency basis: Territorial — Saudi-source business income; employment income untaxed for everyone
regime flag: Resident via domicile + 30 days, or 183 days in the tax year

Rates

Personal income taxation (2026)

Rate	Base	Applies to
0%	—	Salaries, wages, bonuses and all employment income — residents, non-residents and expatriates
0%	—	Dividends and interest of individuals not carrying on a business
20%	Business profits	Resident non-Saudi individuals in business, and non-residents with a Saudi permanent establishment
2.5%	Zakat base	Saudi and Gulf Cooperation Council nationals carrying on business — the religious levy replaces income tax

Thresholds & allowances

No personal reliefsNone exist
With no personal income tax there is nothing to deduct against

Residency

Residency trigger

You are tax resident with a permanent home plus 30 days of presence in the tax year, or 183 days of presence — but residence matters only for business taxpayers and treaty certificates, since employment income is untaxed regardless.

Non-resident treatment

Non-residents pay nothing on employment income; Saudi-source business income through a permanent establishment is taxed at 20%, and passive payments face final withholdings of 5-20%.

Notes

There is no personal tax return in Saudi Arabia — only business taxpayers file, under corporate procedures administered by the Zakat, Tax and Customs Authority.
Foreign income is in principle untaxed; the exception is income from selling goods manufactured or produced in Saudi Arabia.
Spouses are separate persons for any business taxation; partnership income is taxed in the partners' hands.
The practical costs of expat life are levies, not taxes: residency and work-permit fees, plus SAR 400 a month per dependent family member.
Your home country's rules are the real question for expatriates — Saudi Arabia's side adds 0% on salary.

FAQ

Is there income tax in Saudi Arabia?

Not on employment or personal investment income — 0%, with no return to file. Business profits of non-Saudi individuals pay 20%; Saudi and Gulf nationals' businesses pay 2.5% Zakat instead.

Do expats pay tax on their Saudi salary?

No — 0% for everyone. The main expat-specific cost is the SAR 400 monthly levy per dependent family member on the residency side.

What is Zakat?

The religious wealth levy — 2.5% of a defined base — that Saudi and Gulf Cooperation Council nationals pay on business activities instead of income tax.

Figures: tax year 2026, compiled from public sources. Not tax advice.

See income tax in other countries

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