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 23.37% 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
14.4 points below the 23.37% global average
Why Reverse Tax Calculation Matters
Receipts and invoices usually show only the tax-included total — not the pre-tax price. Reversing the calculation matters for bookkeeping, expense claims, and cross-border price comparisons. Because dividing by (1 + rate) isn't the same as simply subtracting the rate, doing this by hand is a common source of errors — select "Reverse" in the purchase-mode calculator above to handle 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
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
Rates last verified for 2026. Tax rates change through national budgets — always confirm current figures with a qualified local tax advisor before making business or relocation decisions. This tool is for estimation and educational purposes only and is not tax, legal, or accounting advice.
Jordan Hayes
Verified AuthorLead Content Editor & Personal Finance Specialist
Jordan Hayes is a personal finance content strategist with 9+ years building educational finance and health resources. He has written and fact-checked over 200 personal finance guides covering mortgage amortization, retirement planning, tax strategy, and budgeting. His work applies IRS publications, Federal Reserve data, and peer-reviewed research to make complex calculations accessible.