Introduction

The wage tax, a withholding of the personal income tax, is progressive, meaning higher incomes are taxed at progressively higher rates. Under the previous system, the first tax bracket (for annual incomes up to Afl. 34,930) was taxed at a rate of 10%.

Key Changes Effective January 1, 2025.

To ease the financial burden on taxpayers, the government has reduced the rate for the first tax bracket from 10% to 0%. Combined with the existing tax-free threshold of Afl. 30,000, this adjustment means that taxpayers earning up to Afl. 63,904 annually will no longer pay any personal income tax. Consequently, wage tax will not be withheld for individuals earning below this amount.

The new 2025 income tax/wage tax table

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Example Calculation for a Yearly Income of Afl. 78,864

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Important Deadlines for Filing Purposes

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