Azerbaijan Payroll Changes - 2026

Rate/Percentage changes affecting payroll

• Income tax (Non-oil/gas private sector)
  • Note: These transitional rates replace the previous tax holiday, effective Jan 1, 2026 – Jan 1, 2027.
  • Monthly income up to 2,500 AZN:
    • Tax rate: 3%
  • Monthly income 2,500 AZN – 8,000 AZN:
    • Tax: 75 AZN + 10% of the amount exceeding 2,500 AZN.
  • Monthly income exceeding 8,000 AZN:
    • Tax: 625 AZN + 14% of the amount exceeding 8,000 AZN.

Upcoming / Other

• Legislative status

These changes are currently preliminary and pending final signature into law.