Middle East
Iran: tax at a glance
This is a residence-based tax system. Personal rates are progressive up to 35%, alongside a 25% corporate rate and a 10% VAT.
Worldwide (residence-based)
Last verified July 2026Some figures indicative
The taxes
- Personal income (top)
- 35%
- Corporate income
- 25%
- Capital gains
- No general capital gains tax, though a 5% transfer tax applies to real estate disposals.
- VAT
- 10%
- Dividends (WHT)
- None. Profits are taxed at the company level, and distributions are exempt.
- Interest (WHT)
- Varies
- Royalties (WHT)
- Up to 25%, calculated on a deemed-profit basis for non-residents.
- Social security (employee)
- 7%
- Social security (employer)
- 23% (incl. unemployment insurance)
- Wealth tax
- None
- Inheritance / estate
- Yes, progressive depending on the heir's class.
- Property tax
- A minimal annual property tax, plus a 5% transfer tax on disposals.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Frequently asked
What is the income tax rate in Iran?
The top marginal personal income tax rate in Iran is 35%. Progressive up to 35%. Salaries are taxed on a separate scale.
What is the corporate tax rate in Iran?
The headline corporate income tax rate is 25%.
Does Iran tax capital gains?
Capital gains for individuals: No general capital gains tax, though a 5% transfer tax applies to real estate disposals..