United Arab Emirates Tax Calculator (2026) — Add or Reverse Tax
United Arab Emirates charges a 5% VAT, a 9% corporate tax rate, and a 0% top personal income tax rate.
How to use this calculator:
- Purchase mode — add VAT to a pre-tax price, or reverse a tax-included total to find the pre-tax price and exact tax paid.
- Profit / salary modes — enter an amount to see the corporate tax owed or a ceiling estimate of personal tax at the top marginal rate.
Understanding United Arab Emirates's Tax System
United Arab Emirates levies VAT at a standard rate of 5%. Its statutory corporate income tax rate is 9%, below the 23.58% global average. The top personal income tax rate is zero — there is no personal income tax.
9% corporate tax introduced in 2023; no personal income tax.
The UAE introduced VAT on January 1, 2018 — coordinated across all six Gulf Cooperation Council members — specifically to diversify government revenue away from oil without discouraging its role as a global business and tourism hub.
Region
Middle East & Africa
VAT rate
5%
vs. world average corporate rate
14.6 points below the 23.58% global average
Why Reverse Tax Calculation Matters
Receipts and invoices usually show only the tax-included total, so separating revenue from tax collected — for bookkeeping or cross-border comparisons — means working backward from that total. Dividing by (1 + rate) isn't the same as subtracting the rate, which is why selecting "Reverse" in the purchase-mode calculator above handles it exactly.
History & Context
The UAE had no general corporate income tax law until 2022, when the Ministry of Finance announced (partly in response to OECD base erosion and profit shifting pressure) a new 9% federal corporate tax effective for financial years starting June 1, 2023 — taxing profits above AED 375,000, with income below that threshold untaxed.
The UAE preserved 0% corporate tax for qualifying Free Zone companies (Qualifying Free Zone Persons) that meet substance requirements — real employees, real operating expenses, and core activities actually conducted within the free zone — a deliberate carve-out to keep the free-zone business model competitive even after the broader corporate tax introduction.
Business Use Case
A company operating from a UAE Free Zone that meets the 'adequate substance' test — genuine local staff, assets, and operations — can still pay 0% corporate tax on qualifying income, while an otherwise similar mainland UAE company pays the standard 9% rate above the AED 375,000 threshold.
Real-World Examples
VAT on a purchase
A AED1,000.00 purchase in United Arab Emirates at 5%:
- Tax: AED1,000.00 × 5% = AED50.00
- Total: AED1,050.00
Corporate tax on profit
AED1,000.00 in company profit in United Arab Emirates at 9%:
- Tax: AED1,000.00 × 9% = AED90.00
- After-tax profit: AED910.00
Extracting VAT from a receipt total (reverse)
A receipt shows a AED1,499.00 tax-included total in United Arab Emirates at 5%:
- Pre-tax price: AED1,499.00 ÷ (1 + 5%) = AED1,427.62
- VAT: AED1,499.00 − AED1,427.62 = AED71.38
Frequently Asked Questions — United Arab Emirates Taxes
What is the VAT rate in United Arab Emirates?▾
What is the corporate tax rate in United Arab Emirates?▾
What is the top personal income tax rate in United Arab Emirates?▾
How is tax calculated on a purchase in United Arab Emirates?▾
How do I reverse United Arab Emirates's VAT to find the price before tax?▾
References & Sources
Methodology: headline VAT/GST and corporate rates are sourced from the OECD Corporate Income Tax Rates Database and Tax Foundation's global rate tables for 2026; figures reflect the national statutory rate and do not include sub-national, sector-specific, or temporary rate variations unless noted in the text above. Tax rates change through national budgets — always confirm current figures with a qualified local tax advisor before making business or relocation decisions.
Rates last verified for 2026. This tool is for estimation and educational purposes only and is not tax, legal, or accounting advice.
Jordan Hayes
Verified AuthorPersonal Finance Content Strategist
Jordan is a personal finance content strategist with 9+ years writing about mortgages, retirement, tax strategy, and budgeting. Every guide is cross-referenced with IRS publications, Federal Reserve data, and CFPB guidance to make complex calculations accessible. Editor at CalculatorApp.me.
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Tax-rate data, review & limitations
Jurisdiction: United Arab Emirates. Effective date: January 1, 2026. Reviewed by CalculatorApp.me editorial staff on July 26, 2026; next scheduled review: October 26, 2026.
Rates are reference estimates, not tax advice. Local rules, exemptions, filing status, and effective dates can change the amount due.
Primary sources
- OECD Tax Database
- Tax Foundation corporate-tax and VAT datasets
- Applicable national revenue authority guidance