UAE Tax Rates 2025

Income tax in UAE ranges from 0.00% to 0.00% in 2025. The 0.00% rate applies to low earners, while the top marginal rate of 0.00% applies to the highest income bracket. The estimated effective rate at average income is approximately 0%.

The standard corporate income tax rate in UAE is 9.00% as of 2025. UAE is considered a low-tax jurisdiction for businesses.

The standard VAT (Value Added Tax / GST) rate in UAE is 5.00%. Reduced rates typically apply to food, medicine, and other essential goods..

Capital gains tax in UAE is not levied as a separate tax (gains may be taxed as ordinary income) in 2025.

In UAE, employees contribute 0.00% of their gross salary to social security, though individual contributions may exist through other schemes. Employers contribute an additional 12.50%. These contributions typically cover pensions, healthcare, and unemployment insurance.

UAE does not currently levy a national inheritance or estate tax. Assets passed to heirs are generally not subject to a separate succession duty.

When buying property in UAE, a property transfer or stamp duty tax of approximately 4.00% is applied to the purchase price. This is a one-time tax paid at the time of purchase and is typically the responsibility of the buyer.

UAE has a low overall tax burden. The maximum combined income tax and employee social security rate reaches 0%. UAE is considered a low-tax jurisdiction, which often makes it attractive for businesses and high-net-worth individuals.

The top income tax rate in UAE is 0.00%, compared to a Middle East average of 18.1% among neighbouring countries. UAE taxes income at a lower rate than the regional average.

The effective tax rate is the actual percentage of income paid in tax — lower than the top marginal rate because lower brackets are taxed at lower rates. In UAE, the estimated effective income tax rate for an average earner is approximately 0% (2025), compared to the headline top rate of 0.00%. Adding employee social security of 0.00% gives a total effective burden of roughly 0% on gross pay.

UAE uses a progressive income tax system with rates ranging from 0.00% at the lowest bracket to 0.00% at the top bracket (2025). There is effectively a tax-free band at the bottom — income up to the personal allowance threshold is taxed at 0%. The number and thresholds of brackets vary by country and are typically adjusted annually for inflation.

UAE does not levy a separate dividend tax, or dividends are taxed as ordinary income at the standard income tax rates (up to 0.00%). Investors should verify the current treatment with a local tax adviser.

In UAE, tax residency is typically determined by the number of days spent in the country (often 183 days per year) or by having a permanent home there. UAE does not levy personal income tax, making it popular with expats and digital nomads. Non-residents are typically taxed only on income sourced within UAE. UAE has tax treaties with many countries to prevent double taxation.

Freelancers and self-employed individuals in UAE typically pay income tax at the same progressive rates as employees — 0.00% to 0.00% — on their net profit after allowable business expenses. Unlike employees who split social security with their employer, self-employed workers often pay both the employee (0.00%) and employer (12.50%) portions themselves, significantly increasing the total tax burden. Self-employed workers are usually required to file a self-assessment tax return and make advance tax payments during the year.

UAE does not currently levy a national wealth or net worth tax. Assets are taxed when sold (capital gains tax) or on income generated (dividends, rent), but simply holding wealth does not trigger an annual tax.

The standard income tax return filing deadline in UAE is N/A (no income tax). Most countries require employees whose tax is fully withheld at source to file only if they have additional income, deductions to claim, or earned above a threshold.