UAE Salary Calculator — Tax-Free Income Breakdown
Calculate your take-home salary in the UAE. Understand the tax-free income structure deductions for housing allowance and end-of-service gratuity.
The UAE has no personal income tax making it one of the most attractive destinations for expatriate workers. Your gross salary is essentially your take-home pay minus any voluntary deductions like medical insurance or pension contributions. However UAE salaries must be understood in the context of housing costs (20-40% of salary in Dubai) and the end-of-service gratuity entitlement.
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Key Information
| Parameter | Details |
|---|---|
| Income Tax Rate | 0% (no personal income tax) |
| Gratuity (under 5 years) | 21 days per year of service |
| Gratuity (over 5 years) | 30 days per year of service |
| VAT Rate | 5% on purchases (not salary) |
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Use Calculator NowFrequently Asked Questions
Is UAE really tax-free?
Yes there is no personal income tax payroll tax or capital gains tax in the UAE. Your gross salary equals your net salary. However there is 5% VAT on purchases and a 9% corporate tax on business profits above AED 375000. Employees earning salary pay zero tax making the UAE one of the best jurisdictions for saving money.
What is UAE gratuity and how is it calculated?
End-of-service gratuity is mandatory: for the first 5 years you earn 21 days of basic salary per year. After 5 years it increases to 30 days per year. On a monthly basic salary of AED 10000 after 8 years: (21 × 10000/30 × 5) + (30 × 10000/30 × 3) = AED 35000 + AED 30000 = AED 65000 total gratuity.
How much should I earn in Dubai?
A comfortable single expat lifestyle in Dubai requires AED 15000-25000/month ($4000-$7000). A family with children needs AED 30000-50000/month ($8000-$14000) factoring in housing school fees and lifestyle. Housing is the biggest expense: a 1-bedroom in Dubai Marina costs AED 6000-10000/month.
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Last updated: March 2026