Iraq income tax rates
Progressive individual income tax under Article 13 of Income Tax Law No. 113 of 1982 as amended, administered by the General Commission of Taxes. Bands apply to a resident individual's annual income AFTER the personal allowances of Article 12. Employment income is collected by employer withholding (الاستقطاع المباشر) and remitted monthly. Non-resident individuals are taxed on the same scale on their Iraq-source income.
| Current value | structured — see the API |
|---|---|
| In force from | 2004-04-01 |
| Official source | CPA Order No. 49 (Tax Strategy of 2004), Section 3, amending Article 13(1)(A) of Income Tax Law No. 113 of 1982 — '3% on amounts up to ID 250,000; 5% on amounts over ID 250,000 and up to ID 500,000; 10% on amounts over ID 500,000 and up to ID 1,000,000; 15% on amounts over ID 1,000,000'; and Section 2, amending Article 12(1) — allowances of ID 2,500,000 for the taxpayer, ID 2,000,000 for a non-earning wife, ID 200,000 per child, ID 3,200,000 for a widow or divorcee, and (Article 12(5)) ID 300,000 additional where the taxpayer is over 63 |
| Last verified | 2026-07-24 |
| Verification | primary — No verification limitation recorded — read from the official source cited. |
| Provenance | source fingerprint |
What this value means
ANNUAL AMOUNTS. Article 13(1) applies the scale 'in respect of each year of assessment' to income AFTER the Article 12 allowances, so the thresholds and the allowances are both per year, not per month — a very common error in Iraqi payroll guidance is to apply the 250,000/500,000/1,000,000 steps monthly. The allowances are generous relative to the bands: a single taxpayer with no dependants shelters the first IQD 2,500,000 of annual income entirely, and only the excess enters the 3% band. ALLOWANCE DETAIL: IQD 2,500,000 for the taxpayer (or for herself if she is unmarried other than a widow or divorcee, or if her income is not aggregated with her husband's); IQD 2,000,000 for a wife (or wives) who is a housewife with no income or whose income is aggregated with his; IQD 200,000 for each child irrespective of number; IQD 3,200,000 for a widow or divorcee plus IQD 200,000 for each child lawfully maintained by her; a further IQD 300,000 where the taxpayer is over 63. A child aged 18 or over with independent income exceeding IQD 200,000 a year does not attract the child allowance. TRANSITIONAL POINT ON THE EFFECTIVE DATE: income tax was suspended for financial year 2003 and for 1 January-31 March 2004 and was reinstated on 1 April 2004, so effective_from is 2004-04-01; for financial year 2004 ONLY, both the band thresholds (Section 3(1)(F)) and the allowances (Section 2(3)) were reduced by one quarter to reflect the nine-month period. The full-year scale served here has applied without reduction since financial year 2005. PRACTICE POINTS: risk allowances are treated as exempt by the tax authority up to about 30% of basic salary; employers withhold and remit monthly to the General Commission of Taxes. THE SCALE IS ADMINISTRATIVELY AMENDABLE — Article 48 of Federal Budget Law No. 13 of 2023 (Iraqi Gazette No. 4726, 26 Jun 2023) empowers the Council of Ministers, on the Minister of Finance's proposal, to amend the tax scale in Article 13 of Law 113/1982 and to defer tax assessment by up to six months, expressly excluding income taxes on oil-licence companies and on mobile-phone and internet companies. No such amendment to the individual bands had been published at confirmation, but this is the mechanism to watch — a change can arrive without new primary legislation. KURDISTAN REGION DIVERGES: the KRG applies its own administration, including a tax-free legal allowance reported at IQD 1,000,000 per month, which is NOT the federal position and is not served here. ACCESS NOTE: the General Commission of Taxes' own Income Tax Guide (tax.mof.gov.iq/دليل-ضريبة-الدخل/), which restates the same allowances, was unreachable — the host refused connection on both HTTP and HTTPS from this location — and the investpromo.gov.iq copy of Law 113/1982 in English returned HTTP 403; the statutory text was therefore read from the signed CPA Order 49 PDF in the US National Archives / UNT CyberCemetery archive.
Get it programmatically
curl https://mearef.dev/v1/iq/income-tax
# $0.001 per call — x402 on Base (USDC). No key, no signup.
# History: curl https://mearef.dev/v1/iq/income-tax/history?from=2020-01-01
# Provenance: curl https://mearef.dev/provenance/iq/income-taxOther Iraq series: policy interest rate · VAT rate · minimum wage · public holidays · inflation rate (CPI) · corporate tax rate