Due to the expiration of the income tax concession, which has been in force in Azerbaijan since 2019 and is intended for employees in the non-oil-gas and non-state sectors, on January 1, 2026, taxes on individuals' monthly income from hired labor will be levied according to new rules.
Modern.az reports that this is reflected in the amendment to the Tax Code approved by President Ilham Aliyev.
According to the law, those with a monthly income of up to 2,500 manats will pay 3% tax in 2026, 5% in 2027, and 7% from 2028.
For those with a monthly income between 2,500 manats and 8,000 manats, the tax will be 75 manats + 10% of the portion from 2,500 manats to 8,000 manats in 2026; 125 manats + 10% of the portion from 2,500 manats to 8,000 manats in 2027; and from 2028, it will be 175 manats + 10% of the portion from 2,500 manats to 8,000 manats.
For those with a monthly income exceeding 8,000 manats, the tax will be 625 manats + 14% of the portion exceeding 8,000 manats in 2026; 675 manats + 14% of the portion exceeding 8,000 manats in 2027; and from 2028, it will be 725 manats + 14% of the portion exceeding 8,000 manats.
It should be noted that for individuals working for taxpayers not engaged in the oil and gas sector and classified as non-state sector, tax on monthly income from hired labor was levied at 0 percent for monthly incomes up to 8,000 manats, and 14 percent for incomes exceeding 8,000 manats, for a period of 7 years starting from January 1, 2019.
