Middle East

Saudi Arabia tax rates 2026

There is no personal income tax, but a 20% corporate tax applies to foreign-owned profit, along with a 2.5% Zakat on nationals and a 15% VAT.

No personal income tax Last verified July 2026

The taxes

Saudi Arabia tax rates
Personal income (top)	0%There is no personal income tax on individuals. Saudi and GCC nationals pay 2.5% Zakat instead of tax on business.
Corporate income	20%
Capital gains	Exempt for individuals. There is no personal capital gains tax.
VAT	15%
Dividends (WHT)	5%
Interest (WHT)	5%
Royalties (WHT)	15%
Social security (employee)	9.75% for Saudis; 0% for expats.
Social security (employer)	11.75% for Saudis; 2% for expats, covering occupational hazard only.
Wealth tax	None. Zakat of 2.5% applies to nationals' Zakat base.
Inheritance / estate	None. Sharia law governs estate distribution.
Property tax	There is no annual property tax. A 5% Real Estate Transaction Tax applies on transfers, and a White Land Tax applies to vacant urban land.
Other	Zakat of 2.5% applies to the Saudi/GCC-owned share; oil and gas profits are taxed at 50–85%.

How the system works

Tax system: No personal income tax
Taxes by citizenship: No
Exit tax: No
CFC rules: No
CRS: Participating

A special regime for new arrivals

The corporate income tax is 20% on the non-Saudi share of profits. Zakat runs 2.5% on the Saudi or GCC share. VAT is 15%. Regional Headquarters (RHQ) licence holders get a 30-year tax incentive package.

Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.