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Self-employed salary calculator - Azerbaijan 2026

Free Self-employed salary calculator for Azerbaijan (2026). Estimate gross-to-net take-home pay: income tax, social contributions and net salary. Educational, not tax advice.

Simon Bodych

by Simon Bodych

Methodology & sources

Methodology - Azerbaijan (2026)

Educational model - not a State Tax Service assessment, not a tax return, not tax advice. Currency AZN. A sector selector (default non-oil private) drives the employee rules.

Employee

  • The 2019-2025 seven-year exemption (0% income tax up to AZN 8,000/month for the non-oil private sector) EXPIRED on 1 January 2026 and was not extended. A new phased progressive tax applies from 2026.
  • Income tax is computed on the gross (social contributions are not deductible). Non-oil private sector: 3% up to AZN 2,500/month, 10% from 2,500 to 8,000, 14% above 8,000. Oil/gas and public sector: 14% up to 2,500, 25% above.
  • Social insurance (DSMF): non-oil private employee 3% up to AZN 200/month then 10%; employer 22% up to 200, 15% from 200 to 8,000, 11% above 8,000. Oil/gas and public sector pay a flat 3% employee / 22% employer.
  • Unemployment insurance is 0.5% on each side. Mandatory medical insurance is 2% up to the threshold then 0.5%; the threshold is AZN 2,500/month for the non-oil private sector and AZN 8,000/month for the oil/gas and public sector.
  • Out of scope: the 2027-2028 income-tax phase-in (band 1 rises 3% to 5% to 7%) and any sub-minimum-wage floors.

Sources: State Tax Service (taxes.gov.az), APA - 2026 income-tax and social-insurance changes, PwC Worldwide Tax Summaries - Azerbaijan.

Self-employed (individual entrepreneur)

  • This model uses the standard regime: 20% profit tax on net profit (revenue minus deductible expenses).
  • Alternative (not modelled): the simplified tax of 2% of turnover for non-VAT businesses with turnover up to AZN 200,000 over 12 months, which replaces income tax and VAT.
  • Individual-entrepreneur social insurance (enacted for 2026): 2% of turnover, floored at AZN 60/month and capped at AZN 400/month.

State Tax Service - simplified tax and profit tax, PwC Worldwide Tax Summaries - Azerbaijan.