Ethiopia tax rates
The top rates a resident individual pays on each kind of income, computed by the Sovereign tax engine from its Ethiopia tax profile.
Sources incomplete — at least one figure has no accepted source yet. Figures last changed 4 November 2026. Profile last reviewed 27 May 2026.
What the calculator needs for Ethiopia
Business assessment requires turnover, category, exclusions and credit history. Only an explicit ordinary non-Category-B assessed-profit case without incentives/prior credits is supported from 8 July 2025.
Not computed means unavailable, not zero tax: the engine cannot state that rate yet.
Scroll across the table to see all tax rates.
| Salary | Capital gains | Dividends | Interest | Rent | Crypto gains | |
|---|---|---|---|---|---|---|
| Ethiopia | 42%† | 15%† | 15% | 10% | 35%† | 15% |
† This figure rests on a PwC tax summary, not on the statute itself. The summary is the only source on file for it.
Each figure is the tax on one more unit of a very large amount of that income, with every layer the engine models: surtaxes and uncapped social contributions included. It is the top marginal rate, not the average rate you pay on all your income.
What is the top income tax rate in Ethiopia?
The top rate on a salary is 42%. It is the tax on each extra unit of a very high salary, with surtaxes and uncapped social contributions included. The income tax scale alone reaches 35% above ETB 168,000.
How are capital gains taxed in Ethiopia?
The top rate on a long-term capital gain is 15%. The rate does not depend on how long you held the asset.
How are dividends and interest taxed in Ethiopia?
The top rate is 15% on dividends and 10% on interest. Rental income is taxed at up to 35%.
How is crypto taxed in Ethiopia?
Ethiopia taxes a gain on crypto assets as a capital gain, at up to 15%.
Does Ethiopia tax foreign income?
Yes. Ethiopia taxes its residents on their worldwide income. A tax treaty or a credit for foreign tax can reduce the tax on income from abroad.
Does Ethiopia have a wealth tax?
No. Ethiopia has no recurring national tax on net wealth in our model. Property taxes and taxes on gifts or inheritances are separate.
Does Ethiopia have an exit tax for individuals?
No. In our model Ethiopia does not tax an individual's unrealised gains when the individual moves abroad.
When do you become tax resident in Ethiopia?
The Ethiopia day test (More than 183 days in any one-year period): 184 recorded days in any one-year period; tax year starts 8 July. Domicile, a government posting, a transit exclusion, part-year residence and any approved accounting year need individual review.
Residence decides whether Ethiopia taxes you on these rates. See the Ethiopia day-count test and count your own days.
Sources
The Ethiopia profile cites 2 sources for these rules, 1 of them from a government or a statute.
- Income Tax (Amendment) Proclamation No.1395/2025 · official, retrieved 2026-11-03
- PwC Worldwide Tax Summaries - Ethiopia individual taxes · summary, retrieved 2026-05-27
The model covers the general rules for a resident individual. It does not cover every deduction, credit, tax treaty or local tax, and rules change after the check date above. Did you find an error? Tell us, with the source.
Compare Ethiopia with other countries
Top rates do not show what you would pay. Sovereign applies these rules to your own assets, income and debts, and compares the result across 165 countries. Put Ethiopia side by side with other countries, see every country or try the live demo.
Other countries in Africa: Ghana, Kenya, Libya, Morocco, Madagascar, Mauritius.