18:04 - 4.11.2025

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November 4, Fineko/abc.az. The income tax rate in Azerbaijan is one of the lowest in the world.

ABC.AZ informs that Finance Minister Sahil Babayev made this statement during the discussion of the Draft State Budget for 2026 by the Parliamentary Committee on Economic Policy, Industry and Entrepreneurship.

He recalled that from 2026, income tax of only 3% will be applied to incomes (of working citizens) in the amount of up to 2,500 manats per month: "At the same time, we have settled the overall fiscal burden. In Azerbaijan, the total fiscal burden used to reach 52-55%, but now it is 37%. We have set a condition not to exceed this level for all types of income," he said.

The minister stressed that according to government's plans, income tax rate will increase to 5% in 2026 and stabilize at 7% from 2027.

"Thus, starting in 2027, income tax rate will be 7% on incomes up to 2,500 manats per month, 10% - up to 8,000 manats and 14% - over 8,000 manats. We believe this creates a positive foundation and conditions for development of the private sector, especially small and medium-sized businesses, investments and infrastructure investments," Babayev emphasized.

Since January 1, 2019, 7-year income tax benefits for the non-oil private sector have been in effect in Azerbaijan. These benefits expire at the end of 2025.