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Last updated at
October 28, 2025
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Book NowPersonal income tax in Jordan applies on annual taxable income through progressive rates from 5% to 30%. It covers income earned in or from Jordan and applies to worldwide income of residents, including foreign-source income. The main tax bands apply on the first JOD 5,000, 10,000, 15,000, and 20,000 of taxable income. A national contribution of 1% applies on income above JOD 200,000 each year. Standard personal allowances lower the taxable amount. This blog explains who will pay the tax, how taxable income is calculated, the applicable rates, filing rules, key deductions, employer responsibilities, and short FAQs relevant to income tax in Jordan.
Personal income tax in Jordan ensures fair taxation while providing relief through allowances and exemptions. It applies to income earned by residents and nonresidents, and residents are generally taxed on income sourced in Jordan.
The system is progressive so the tax rate rises as income increases. Rates start at 5% and go up to 30%. High-income earners will also pay a 1% national contribution on taxable income above JOD 200,000.
Key features include:
Progressive tax bands: Income is taxed in stages on different ranges, which keeps the system fair for lower and middle-income groups.
Personal and dependents’ allowances: Fixed annual deductions reduce taxable income and help taxpayers who have families.
Limited deductible expenses: Taxpayers can claim specific deductions for medical, education, rent, or housing interest costs within approved limits.
Employer obligations: Employers must withhold income tax on salaries and submit payments together with social security contributions.
Filing deadlines: Annual tax returns and payments are due within four months after the end of the tax year.
Taxability in Jordan is based on source and residence. Any income earned in or from Jordan is subject to Jordanian income tax regardless of where the payment is made. A natural person becomes a Jordan tax resident if present in Jordan for at least 183 days in the tax year. Residents are generally taxed on income sourced in Jordan, while non-residents are taxed only on Jordan-source income. The practical outcome for most employees is that salary for work performed in Jordan is taxable here and must be reported and paid on the Jordan return or withheld by the employer.
In Jordan, taxable income is calculated by taking a taxpayer’s total earnings and systematically reducing them by allowances, deductions, and exemptions. This ensures that only the net income that is legally subject to tax is considered. The process can be summarized as follows:
Start with gross income for the tax year from all taxable sources in Jordan. This includes salaries, wages, bonuses, business income, rent, and interest that originates in Jordan.
Subtract statutory allowances and permitted deductions. The main items are the personal allowance and dependents allowance, plus specific expense items for education, medical, rent, or mortgage interest subject to a cap and a household limit.
Apply any other tax exemptions that fit the case. Examples include some dividends from resident companies and special exemptions for handicapped persons or limited agricultural sales.
The remainder is the annual taxable income. Tax is computed on this amount using the progressive bands. If annual taxable income exceeds JOD 200,000, apply the 1% national contribution on the excess.
Jordan follows a progressive tax system, where different portions of income are taxed at increasing rates. The calculation is done as follows:
5% on the first JOD 5,000
10% on the next JOD 5,000
15% on the next JOD 5,000
20% on the next JOD 5,000
25% on income from JOD 20,001 up to JOD 1,000,000
30% on income above JOD 1,000,000
If annual taxable income exceeds JOD 200,000, add an extra 1% national contribution tax on the amount above that threshold. This progressive method is applied for both payroll withholding and annual return calculations.
Taxable income in Jordan is reduced by fixed allowances and limited deductions. Each taxpayer receives a personal allowance of JOD 9,000, with an additional JOD 9,000 for family members. Deductions cover medical, education, rent, and housing loan interest expenses. The limit is JOD 1,000 for the taxpayer, JOD 1,000 for a spouse, and JOD 1,000 per child, with a household cap of JOD 3,000. Total relief, including allowances and deductions, cannot exceed JOD 23,000 per family.
Deductions are applied in order: the personal allowance is claimed first, followed by the family allowance, and then approved expenses within the set limits. Receipts must be kept as proof. Employers handle allowances in payroll, while taxpayers must provide supporting documentation during annual filing. Additional exemptions are available for disabled individuals and limited agricultural income.
Employers who pay salaries must withhold income tax at the progressive rates and remit the withheld amounts to the Income and Sales Tax Department electronically within the required time. Each payment of tax withheld with the employer’s share of social security contributions must be declared and settled within 30 days from the salary payment date.
The annual income tax return and final payment of tax are due within four months after the end of the tax year. Late filing leads to a fixed penalty, and delayed payments attract a weekly percentage charge as per the Income Tax Law.
Social security in Jordan is a system separate from income tax that will cover both employers and employees. The employer will contribute 14.25 percent on the gross monthly salary, and the employee will contribute 7.5 percent. Contributions apply on total earnings and on certain allowances up to the statutory monthly salary limit that will be revised each year. For 2024, the limit was JOD 3,612, and employers must confirm the updated threshold every year to ensure correct calculation of contributions.
Every month, employers will withhold the employee share, add the employer share, and submit both contributions to the Social Security Corporation on the required date. Failure to report or remit the contributions will result in penalties, late charges, and possible audits or enforcement actions by the authorities**.**
Certain types of income in Jordan will be exempt or treated in a special way for tax purposes. Dividends from resident companies will generally be exempt for individuals unless the dividend originates from a nonresident source. Capital gains will normally be exempt except for gains on the sale of depreciable assets or specific share sales under defined rules. Pensions will have limited exemptions on early withdrawals, and registered disabled persons will qualify for an annual exemption of JOD 2,000.
Payments to nonresidents will sometimes be subject to withholding tax at source depending on the type of income and payer. The application of double tax treaties will change withholding outcomes for foreign residents. Taxpayers should refer to the Income Tax Law and any relevant treaty for accurate calculation of exemptions and obligations.
Personal income tax in Jordan is applied to the annual taxable income of both residents and non-residents from income earned in Jordan. Rates range from 5% to 30% and a 1% national contribution applies on the portion of income above JOD 200,000. A personal allowance of JOD 9,000 applies for the taxpayer and another JOD 9,000 applies for the dependents with a household cap of JOD 23,000. Filing of tax returns on time and correct withholding of tax protects the employer and the employee from penalties. The rules ensure fair taxation and provide limited relief for the dependents and essential household expenses. For exact calculations or complex cases a local tax adviser or the Income and Sales Tax Department website provides guidance on the Income Tax Law.
How do personal income tax bands apply in Jordan?
Bands apply on the taxable income progressively and each portion of income is taxed at the rate of the relevant band until the full taxable amount is covered.
What allowances reduce taxable income for individuals in Jordan?
A personal allowance of JOD 9,000 applies for the taxpayer. A dependents allowance of JOD 9,000 applies. Deductions on household expenses are limited to a total of JOD 23,000.
When does a taxpayer file a Jordan annual income tax return?
The return and any final tax due are filed and paid within four months after the end of the tax year.
Does Jordan charge an extra national contribution on high incomes?
A 1% national contribution applies on the portion of annual taxable income above JOD 200,000.
What social security rates apply in Jordan for employees and employers?
The employer rate is 14.25% and the employee rate is 7.5%. Both rates are calculated on the monthly base up to the statutory cap.
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