Due to the expiration of the income tax exemption for individuals working in the non-oil and gas and non-state sectors, which has been in effect in Azerbaijan since 2019, on January 1, 2026, taxes will be levied on the monthly income of individuals from hired work under a new procedure, APA reports.
This is reflected in the amendment to the Tax Code approved by President Ilham Aliyev.
According to the law, those with a monthly income of up to 2,500 manats in 2026 will pay 3% tax, 5% in 2027, and 7% from 2028.
The tax for those with a monthly income of 2,500 to 8,000 manats will be 75 manats + 10% of the portion from 2,500 to 8,000 manats in 2026, 125 manats + 10% of the portion from 2,500 to 8,000 manats in 2027, and 175 manats + 10% of the portion from 2,500 to 8,000 manats from 2028.
The tax for those with a monthly income of more than 8,000 manats will be 625 manats + 14% of the portion exceeding 8,000 manats in 2026, 675 manats + 14% of the portion exceeding 8,000 manats in 2027, and 725 manats + 14% of the portion exceeding 8,000 manats from 2028.
It should be noted that the tax on the monthly income of individuals who do not have activities in the oil and gas sector and work for taxpayers belonging to the non-state sector was withheld for 7 years from January 1, 2019 at a rate of 0 percent if the monthly income is up to 8,000 manats, and 14 percent if it is more than 8,000 manats.
