Free Tool

Ethiopian Income
Tax Calculator

Estimate employment, rental, business, Category B and other income taxes using the rates introduced by the 2025 amendment.

Updated for Proclamation No. 1395/2025

Calculate the tax that applies to you

Choose an income type first. Each calculator uses the relevant amended threshold and rate structure.

Monthly salary

Employment tax

ETB

Progressive bracket breakdown

Taxed in layers
0 – 2,000 ETB0%0.00 ETB
2,000 – 4,000 ETB15%300.00 ETB
4,000 – 7,000 ETB20%600.00 ETB
7,000 – 10,000 ETB25%750.00 ETB
10,000 – 14,000 ETB30%1,200.00 ETB
14,000 – and above ETB35%350.00 ETB
Why This Calculator

Built by an Authority on
Ethiopian Tax Law.

Five Tax Categories

Move between employment, rental, individual business, Category B gross sales, and other income taxes.

Correct Tax Periods

Employment is calculated monthly; rental, business and Category B calculations use annual amounts.

Bracket Breakdown

See how progressive tax builds across bands, with the taxable amount and liability shown separately.

How It Works

The Deduction-Method Formula

Employment, rental and individual business income use progressive brackets. Each slice of taxable income is charged at the rate for that band:

Total tax = Sum of tax from each bracket

For example, a monthly salary of 8,000 ETB is taxed progressively: the first ETB 2,000 is exempt, then the next bands are charged at 15%, 20%, and 25%. The estimated tax is 1,150 ETB, leaving 6,850 ETB before pension and other payroll adjustments.

Important: The calculator follows the rate summary in Income Tax Proclamation (Amendment) No. 1395/2025. Real-world liability can also involve pension, exemptions, deductible expenses, taxpayer classification, and sector-specific rules.Book a free consultation for a precise calculation.