How is income tax calculated in Libya?
From gross salary, the employee social insurance contribution (5.125%), the 1% Social Unity Fund contribution and the personal exemption (LYD 1,800 a year for a single person) are deducted.
The rest is taxed at 5% up to LYD 12,000 a year and 10% above that.
A stamp duty of 0.5% is also charged on salaries. Social security applies to everyone working in Libya, including expatriates.
What is the income tax rate in Libya?
| Taxable income | Rate |
|---|---|
| LYD 0 – LYD 12,000 | 5% |
| Over LYD 12,000 | 10% |
What mandatory salary deductions apply?
- Social security, INAS (employee): 5.125% of pay.
- Social Unity Fund: 1% of pay.
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: LYD 19,000.000 a month
An employee earning 19,000 a month, about US$3,000.
| Item | Monthly | Annual |
|---|---|---|
| Gross salary | LYD 19,000.000 | LYD 228,000.000 |
| Income tax | LYD 1,813.625 | LYD 21,763.500 |
| Compulsory contributions | LYD 1,163.750 | LYD 13,965.000 |
| Take-home pay | LYD 16,022.625 | LYD 192,271.500 |
Effective income tax rate 9.5%; all deductions 15.7%.
Frequently asked questions
What are the income tax rates in Libya?
5% on the first LYD 12,000 a year (LYD 1,000 a month) and 10% above that.
Do expatriates pay Libyan social security?
Yes. Contributions are payable by all persons working in Libya, including expatriates.
What is the personal exemption?
LYD 1,800 a year (LYD 150 a month) for a single person.
Official sources
- PwC Worldwide Tax Summaries (reviewed 31 May 2026): Libya - Individual - Taxes on personal income. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 31 May 2026): Libya - Individual - Other taxes. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 31 May 2026): Libya - Individual - Deductions. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 31 May 2026): Libya - Individual - Tax administration. 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.
← Compare Libya with other countries in the worldwide income tax calculator