How is income tax calculated in Saudi Arabia?
Saudi Arabia does not tax income from employment. Saudi employees contribute to GOSI social insurance.
What is the income tax rate in Saudi Arabia?
No income tax on employment. Saudi employees pay 9.75% to GOSI; expatriates pay nothing.
What mandatory salary deductions apply?
- Saudis: 9.75% of basic salary plus housing, up to SAR 45,000 a month. Expatriates: none.
Gross salary and take-home salary
Gross salary is what your contract says before anything is taken off. Take-home salary is what reaches your bank account after income tax and the compulsory employee contributions. Employer contributions are paid on top of your salary and are not taken from it.
Example: SAR 20,000.00 a month
An expatriate employee in Saudi Arabia.
| Item | Monthly | Annual |
|---|---|---|
| Gross salary | SAR 20,000.00 | SAR 240,000.00 |
| Income tax | SAR 0.00 | SAR 0.00 |
| Compulsory contributions | SAR 0.00 | SAR 0.00 |
| Take-home pay | SAR 20,000.00 | SAR 240,000.00 |
Effective income tax rate 0.0%; all deductions 0.0%.
How can employees legally reduce their taxes?
- There is no income tax to reduce. What changes take-home pay is the employee’s social insurance, which is set by law and cannot be opted out of where it applies.
Frequently asked questions
Is there income tax on salaries in Saudi Arabia?
No. Saudi Arabia does not tax employment income.
Do expatriates pay GOSI?
Not from their pay. The employer pays 2% occupational hazard insurance for non-Saudi employees.
Official sources
- PwC Worldwide Tax Summaries (reviewed 29 July 2026): Taxes on personal income and social security contributions. Read 5 November 2026.
Last reviewed 5 November 2026. An estimate for planning, not tax advice; your employer’s payroll and the tax authority decide what is actually withheld.
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