How is income tax calculated in Oman?
Oman has no personal income tax in 2026; one starts in 2028 for high earners. Omani employees pay social security.
What is the income tax rate in Oman?
No personal income tax until 2028. Omani employees pay 8% social security; expatriates pay none.
What mandatory salary deductions apply?
- Omanis: 8% (7.5% on salary up to OMR 3,000 a month, plus 0.5% job security on all pay). Expatriates: none.
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: OMR 1,500.000 a month
An expatriate in Muscat earning OMR 1,500 a month.
| Item | Monthly | Annual |
|---|---|---|
| Gross salary | OMR 1,500.000 | OMR 18,000.000 |
| Income tax | OMR 0.000 | OMR 0.000 |
| Compulsory contributions | OMR 0.000 | OMR 0.000 |
| Take-home pay | OMR 1,500.000 | OMR 18,000.000 |
Effective income tax rate 0.0%; all deductions 0.0%.
How can employees legally reduce their taxes?
- There is no income tax to reduce. What changes take-home pay is the employee’s social insurance, which is set by law and cannot be opted out of where it applies.
Frequently asked questions
Is there income tax on salaries in Oman?
No. Oman does not tax employment income.
Will Oman introduce income tax?
Yes, from 1 January 2028: 5% on a resident’s income above OMR 42,000 a year. It does not apply to 2026.
Official sources
- PwC Worldwide Tax Summaries (reviewed 7 July 2026): Taxes on personal income and social security contributions. 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.
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