Oman Personal Income Tax Calculator
Enter your salary, other income for the year and your exempt expenses to see your annual tax, your effective rate, whether you must file a return, and an estimate of payroll withholding.
Work out your annual tax
How Oman's personal income tax works
- Gross income: everything you receive in the year in cash or in kind: salary, allowances, bonuses, pension, end-of-service gratuity, rent, dividends and interest.
- Threshold: if gross income does not exceed OMR 42,000, there is no tax and no return.
- Taxable income: gross − 42,000 − costs (15% of rent and self-employment, or actual) − exemptions.
- Tax: 5% of taxable income, with no bands.
Effective tax on a salary with no deductions
| Annual income | Monthly salary | Annual tax | Effective rate |
|---|---|---|---|
| 42,000 | 3,500 | 0 | 0% |
| 48,000 | 4,000 | 300 | 0.63% |
| 60,000 | 5,000 | 900 | 1.5% |
| 84,000 | 7,000 | 2,100 | 2.5% |
| 120,000 | 10,000 | 3,900 | 3.25% |
| 240,000 | 20,000 | 9,900 | 4.13% |
The Tax Authority says about 99% of the population is below the threshold and will not pay the tax.
Examples for 2028:
An Omani earning OMR 4,000 a month with residential rent of 6,000 and main-home loan interest of 2,000: gross 54,000, deductions 5,600 (rent cost 900 + pension contributions 2,700 + interest 2,000), taxable 6,400 and tax OMR 320.
An expatriate earning OMR 5,000 a month: taxable 18,000 and tax OMR 900 (75 a month), falling to 675 with school fees of 4,000 and medical costs of 500.
An expatriate who works 8 months on 4,500 and receives a gratuity of 25,000: gross 61,000 and tax OMR 950; without the gratuity there would be no tax.
Returns and withholding
- Anyone whose gross income exceeds OMR 42,000 files an electronic return within 6 months of the year end (first deadline 30 June 2029) and pays with it.
- Employers withhold tax from salaries expected to exceed the threshold, deducting only exemptions that are part of the salary, such as pension contributions; you recover the rest through your return.
- Anyone leaving Oman for good files a return at least 60 days before their residence ends.
- Late payment costs 1% a month of the unpaid amount.
This is an estimate: the executive regulations that set the conditions for education, healthcare and loan exemptions and the monthly withholding method had not been published by November 2026. To work out a gratuity before you receive it, see the Oman end-of-service calculator. Prefer Arabic? Use the Arabic version.
Frequently asked questions
When does personal income tax start in Oman?
On 1 January 2028. The tax year is the calendar year, so the first return and payment are due by 30 June 2029. The law was issued by Royal Decree 56/2025 on 22 June 2025.
How much is income tax in Oman?
5% only on gross annual income above OMR 42,000, after costs and exemptions. Someone earning OMR 60,000 with no deductions pays 5% × 18,000 = OMR 900, or 1.5% of income.
Do expatriates pay income tax in Oman?
Yes, if their income exceeds the threshold. The test is residence, not nationality: anyone in Oman for more than 183 days in the year is resident and taxed on worldwide income; non-residents are taxed only on income earned in Oman.
Is a salary of OMR 3,500 a month taxed?
No. 3,500 × 12 = OMR 42,000 exactly, and the tax applies only to income above the threshold, so there is no tax and no return. Tax starts on anything above that.
Are end-of-service gratuity and pensions taxed?
Yes. The law lists pensions and end-of-service gratuities among taxable income, so a gratuity can push someone into tax in the year it is paid. What is exempt is your own contributions to pension schemes (up to two schemes).
Which exemptions reduce the tax?
Your pension contributions, education and healthcare expenses for you and your family, zakat and donations to approved bodies up to 5% of gross income, interest on a loan to build or buy your main home (once), and interest on Omani government bonds and sukuk. Rent and self-employment get a 15% deemed cost or actual costs.
Is the threshold per person or per family?
Per person. There is no joint return for spouses, so each has their own OMR 42,000 threshold.
Sources
- Royal Decree 56/2025 issuing the Personal Income Tax Law (Official Gazette 1602, June 2025, Arabic)
- Oman Tax Authority — personal income tax FAQs (October 2026)
- Oman Tax Authority — issuance of the PIT law (June 2025)
- EY — Oman to introduce personal income tax from January 2028 (July 2025)
Figures and formulas on this page were last reviewed on 2026-11-03.