Tax Calculator UAE
The UAE has no personal income tax for residents. Corporate tax applies at 9% above AED 375,000 in business profits. VAT is 5%. Here's the full picture for 2026 (No personal income tax).
Personal income tax
AED 0
The UAE has no personal income tax for residents or expats. Your full gross of AED 240,000 is your take-home.
Other UAE taxes to be aware of:
- Corporate tax (9%) on business profits above AED 375,000 — applies to businesses including freelance / sole-trader ventures registered under the new tax regime.
- VAT (5%) on most goods and services you buy.
- Excise tax on tobacco (100%), energy drinks (100%), and sugary drinks (50%).
UAE tax at a glance
| Tax | Rate | Applies to |
|---|---|---|
| Personal income tax | 0% | Residents (citizens + expats) |
| Corporate tax | 9% | Business profits above AED 375,000 |
| VAT | 5% | Most goods & services |
| Excise (tobacco, energy) | 100% | Selected goods only |
| Excise (sugary drinks) | 50% | Selected goods only |
| Capital gains tax | 0% | Personal investments |
| Inheritance tax | 0% | Personal estates |
| Property registration (Dubai DLD) | 4% | One-off on purchase |
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Frequently Asked Questions
Does the UAE actually have zero personal income tax?▾
Yes — for residents (citizens and expats alike), personal income from employment, freelancing, investments, property rental, and capital gains is not taxed by the UAE. There is no tax return for personal income. This is a fundamental pillar of the UAE's appeal to professionals and digital nomads.
What is UAE corporate tax and when does it apply?▾
Corporate tax was introduced in June 2023 at 9% on business profits above AED 375,000. It applies to businesses incorporated in the UAE, foreign companies operating in the UAE, and natural persons (including freelancers) carrying out a business activity with annual turnover above AED 1 million. Free zone businesses can qualify for 0% on 'qualifying income' if they meet specific conditions.
If I freelance in Dubai, do I pay tax?▾
If your turnover is below AED 1 million/year, no — you're outside the corporate tax regime. Above that, you may need to register and pay 9% corporate tax on profits over AED 375,000. The first AED 375,000 of profit is taxed at 0%. Many freelancers structure as DIFC/ADGM or mainland LLCs to manage this professionally — speak to an accountant once you cross AED 800k revenue.
What is the UAE VAT and who pays it?▾
VAT is 5% on most goods and services in the UAE, introduced 1 January 2018. Businesses with annual turnover above AED 375,000 must register for VAT, collect it from customers, and remit to the Federal Tax Authority (FTA). Some categories are zero-rated: residential rent, healthcare, education, exports, and certain financial services. As an individual, you pay VAT on most purchases without thinking about it.
Are there any other UAE taxes I should know about?▾
A few specific ones: (1) Excise tax — 100% on tobacco and energy drinks, 50% on sugary drinks; (2) Tourism Dirham — AED 7-20/night hotel fees in Dubai and Abu Dhabi; (3) Property registration fees — 4% DLD in Dubai (one-off); (4) Municipality housing fee — 5% of annual rent in Dubai, collected via your DEWA bill. None of these are income tax.
Will the UAE introduce personal income tax in the future?▾
There's no official plan to introduce personal income tax in the UAE, and the government has repeatedly reaffirmed the 0% policy. However, corporate tax was unthinkable a decade ago and was introduced in 2023. Most analysts believe personal tax remains very unlikely in the short-medium term given its strategic importance to expat retention.
What about the OECD global minimum tax?▾
The UAE has implemented the OECD's Pillar Two 15% global minimum tax (Domestic Minimum Top-up Tax or DMTT) effective from 1 January 2025 — but only for multinational enterprises (MNEs) with global revenues above EUR 750 million. Doesn't affect small businesses, individuals, or freelancers.