Rates by sector and year
Income tax is calculated on gross salary; insurance contributions are not deducted first. The private non-oil scale is written into Tax Code articles 101.1-1.1 (2026), 101.1-1.2 (2027) and 101.1-1.3 (2028). The state and oil-and-gas sector uses the scale in article 101.1.
| Monthly salary | 2026 | 2027 | 2028 |
|---|---|---|---|
| up to 2,500 ₼ | 3% | 5% | 7% |
| 2,500 ₼ to 8,000 ₼ | 75 ₼ + 10% of the part above 2,500 ₼ | 125 ₼ + 10% of the part above 2,500 ₼ | 175 ₼ + 10% of the part above 2,500 ₼ |
| above 8,000 ₼ | 625 ₼ + 14% of the part above 8,000 ₼ | 675 ₼ + 14% of the part above 8,000 ₼ | 725 ₼ + 14% of the part above 8,000 ₼ |
| Monthly salary | 2026 |
|---|---|
| up to 2,500 ₼ | 14% |
| above 2,500 ₼ | 350 ₼ + 25% of the part above 2,500 ₼ |
How to read the scale: the part of income up to 2,500 ₼ is taxed at the first rate, the part between 2,500 ₼ and 8,000 ₼ at 10%, and the part above 8,000 ₼ at 14%. The fixed sum in the table is the tax on the bands below.
What the law fixes and what is projected
The private-sector scales for 2027 and 2028 are written into the Tax Code by Law 297-VIIQD of 9 December 2025, so those figures are dated in the law itself. Only the first rate rises: 3%, 5%, 7%. The upper bands do not change.
The other rules for 2027 to 2028 are not written into law separately. For insurance contributions, the 200 ₼ tax-free part and reliefs, the calculator carries today’s law forward. That is a projection, not a confirmed rule, and the calculator marks those years “Projected”.
From 1 January 2019 to 31 December 2025, private-sector monthly income up to 8,000 ₼ was taxed at 0% and the part above at 14%. That relief does not exist from 1 January 2026: article 101.1-1 was replaced in full by Law 297-VIIQD.
The 200 ₼ tax-free part
Under Tax Code article 102.1.6, at the main workplace (where the employment record book is kept) 200 ₼ of monthly income is tax-free when that income is up to 2,500 ₼. It applies in both sectors. One qəpik over 2,500 ₼ and the whole tax-free part is gone, so take-home pay drops: see the 2,500 ₼ threshold.
For example, in the private sector a 1,000 ₼ salary is taxed on (1,000 ₼ − 200 ₼), which gives 24.00 ₼ in 2026.
Examples and a year-by-year comparison
On a 1,000 ₼ salary the tax is 24.00 ₼ in 2026, 40.00 ₼ in 2027 and 56.00 ₼ in 2028. On a 3,000 ₼ salary it is 125.00 ₼ in 2026, 175.00 ₼ in 2027 and 225.00 ₼ in 2028, because above 2,500 ₼ there is no tax-free part. The first rate is in law, but the 2027 and 2028 figures are projected: they hold if today’s other rules stay.
From the employee’s pay per month, ₼
Employer cost per month, ₼
| Gross salary | 2026 | 2027 · Projected | 2028 · Projected |
|---|---|---|---|
| 500.00 ₼ | 442.50 ₼ | 436.50 ₼ | 430.50 ₼ |
| 1,000.00 ₼ | 865.00 ₼ | 849.00 ₼ | 833.00 ₼ |
| 2,000.00 ₼ | 1,710.00 ₼ | 1,674.00 ₼ | 1,638.00 ₼ |
| 3,000.00 ₼ | 2,521.50 ₼ | 2,471.50 ₼ | 2,421.50 ₼ |
| 5,000.00 ₼ | 4,101.50 ₼ | 4,051.50 ₼ | 4,001.50 ₼ |
For 2027, 2028 the insurance contributions and the tax-free part follow today’s law; the only change the law writes in for those years is the private-sector income tax scale.
State and oil-and-gas sector
The scale is 14% up to 2,500 ₼, then 350 ₼ plus 25% of the part above 2,500 ₼. No change for 2027 or 2028 has been found, but none is confirmed; those years are projected. A 1,000 ₼ salary pays 112.00 ₼. The Code does not define the sector; an executive body sets the criteria.
A second job
Under article 101.1-2, tax for people with two or more employers is calculated at each workplace separately. Reliefs apply only at the main workplace (102.8), so at a second job a 1,000 ₼ salary is taxed from the first manat: 30.00 ₼. At the main job it is 24.00 ₼.
All deductions together are on the salary deductions page; sources and method are on the methodology page.
Questions and answers
What is income tax in Azerbaijan in 2026?
In the private non-oil sector it is 3% on pay up to 2,500 ₼ and 10% on the part from 2,500 ₼ to 8,000 ₼. In the state and oil-and-gas sector it is 14% up to 2,500 ₼.
What will income tax be in 2027?
In the private sector the first rate becomes 5%; Law 297-VIIQD sets it. If today’s other rules stay, a 1,000 ₼ salary pays 40.00 ₼ (projected). The other 2027 rules are carried forward from today’s law and are not confirmed.
How is income tax on salary calculated?
At the main job 200 ₼ is deducted when pay is up to 2,500 ₼, and the scale is applied to the rest. On 1,000 ₼ in 2026 the tax is 24.00 ₼.
How much income tax does the state sector pay?
14% up to 2,500 ₼, 25% on the part above it, plus a fixed 350 ₼. A 1,000 ₼ salary pays 112.00 ₼.