ET · Africa · ETB
Ethiopia
Tax rates
Income Tax
35%
Top rate, progressive scale
Source: PwC Worldwide Tax Summaries — Ethiopia, Individual - Taxes on personal income · as of 2026-07-15Corporate Tax
30%
Statutory rate
Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01VAT
15%
Standard rate
Source: PWC Worldwide Tax Summaries — Ethiopia (Corporate, Other taxes) · as of 2026-07-15Capital Gains Tax
15%
Source: PwC Worldwide Tax Summaries — Ethiopia, Corporate - Other taxes · as of 2026-07-15Wealth Tax
0%
Not levied
No verified data yet for: Crypto Tax.
Estimate your income tax on a salary with the income tax calculator.
Brackets, notes & in practice
Income Tax
| Threshold | Rate |
|---|---|
| ETB 0 | 0% |
| ETB 2,001 | 15% |
| ETB 4,001 | 20% |
| ETB 7,001 | 25% |
| ETB 10,001 | 30% |
| ETB 14,000 | 35% |
Ethiopia states its employment income tax as a table of monthly salary bands; the thresholds above are monthly amounts, not annual.
Ethiopia's taxable income comprises employment income, business profits, and investment income; this is the top rate on the table of monthly employment income tax brackets, applying to monthly salary exceeding ETB 14,000.
VAT
In practice
- Filing
A person must register for VAT once taxable supplies reach, or are expected to reach, ETB 2 million in a 12-month period; registered taxpayers file monthly VAT returns.
Source: PWC Worldwide Tax Summaries — Ethiopia (Corporate, Other taxes) · as of 2026-07-15- Exemptions
Ethiopian VAT distinguishes taxable supplies, including zero-rated supplies, whose input tax is recoverable, from exempt supplies, whose input VAT is not recoverable; where a person makes both, input tax must be apportioned between the two.
Source: PWC Worldwide Tax Summaries — Ethiopia (Corporate, Other taxes) · as of 2026-07-15
Capital Gains Tax
Ethiopia applies a flat 15% capital gains tax to gains from shares, as well as bonds and buildings, with no distinction by holding period for shares.
In practice
- Exemptions
Ethiopia's 15% capital gains tax applies to shares, bonds, and buildings, except a building that has been held and wholly used as a private residence for the two years before disposal.
Source: PwC Worldwide Tax Summaries — Ethiopia, Corporate - Other taxes · as of 2026-07-15
Wealth Tax
No net wealth tax levied. PWC's dedicated "Net wealth/worth taxes" subsection states: "There are no net wealth/worth taxes in Ethiopia."