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Data from official sources · Made in Argentina

Employment income tax calculator Ethiopia

Employment income tax (Schedule A) is withheld by your employer every month. Enter your taxable income and see how much tax comes off, which band you are in and the deduction that goes with it.

The bands are the ones set by the Income Tax (Amendment) Proclamation No. 1395/2025 for income earned from 8 July 2025.

Salary plus taxable allowances and benefits, before any deduction.

How it's calculated

  1. Income up to ETB 2,000 a month pays nothing.
  2. From ETB 2,000 to ETB 4,000 the rate is 15%, then 20% up to ETB 7,000, 25% up to ETB 10,000 and 30% up to ETB 14,000.
  3. Everything above ETB 14,000 pays 35%.
  4. Each rate applies only to the slice of income inside its band. Payroll staff often use the short form: income times the rate of your band, less the deduction shown in the result.

An example

On ETB 10,000 a month the tax is ETB 1,650: nothing on the first 2,000, then 300, 600 and 750 on the next three slices. The short form gives the same: 10,000 × 25% less 850.

Frequently asked questions

Does the whole salary pay the top rate?

No. Only the part of your income inside each band pays that band's rate. Moving into a higher band never lowers your take-home pay.

What counts as taxable employment income?

Your salary and the allowances and benefits the law does not exempt. Your employer works out the taxable figure and withholds the tax.

What changed in July 2025?

Proclamation 1395/2025 raised the tax free part to ETB 2,000 a month and redrew the bands. The top rate stays at 35%.

Key terms

Schedule A
The part of the income tax law that covers employment income.
Band
A range of monthly income taxed at one rate.
Effective rate
Total tax divided by total income.

The same calculation in other countries

Up-to-date official data

Data checked against the official source on .

We check the official sources automatically, every day.

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