Methodology - Jordan (2026)

Educational model - not an ISTD assessment, not a tax return, not tax advice. Currency JOD.

Employee

Income tax is progressive on annual taxable income (Income Tax Law 34/2014 as amended by 38/2018): 5% to JOD 5,000; 10% to 10,000; 15% to 15,000; 20% to 20,000; 25% to 1,000,000; 30% above. A separate national contribution of a flat 1% applies to the portion of taxable income above JOD 200,000.
Taxable income = annual gross minus the personal exemption: JOD 9,000 for an individual or JOD 18,000 for a family (selectable). The additional expense-based exemptions (medical/education/rent/murabaha, JOD 1,000 each, family ceiling 23,000) are not modelled.
AMBIGUITY: the official PwC sample calculation derives taxable income from gross minus exemptions and does NOT subtract the employee social security; some payroll guides do. This model follows PwC (no SSC deduction from the tax base).
Social Security (SSC): employee 7.5% + employer 14.25% of the insurable wage, capped at JOD 3,733/month (2026), floored at the minimum wage (JOD 290).
Out of scope: the additional expense-based exemptions and the legacy SSC cap (JOD 5,000 for members who joined before 1 May 2010).

Self-employed / professional income is taxed under the same progressive brackets, with the same personal exemption (9,000 individual / 18,000 family) and the same 1% national contribution above JOD 200,000, on net profit (revenue minus deductible expenses).
Social Security for the self-employed is voluntary (optional coverage, about 17.5%, old-age/disability/death only) and is excluded by default.