SALARY TAX
How Lebanese salary income tax is calculated
The monthly deduction is the end of an annual calculation: salary is annualized, eligible deductions are applied, and the remaining taxable income moves through progressive bands.
Rules version LB-2026.2 · Reviewed 3 September 2026
The calculation in six steps
- Start with monthly gross salary in Lebanese pounds.
- Deduct the employee NSSF health contribution used by the calculator.
- Multiply the remaining monthly amount by twelve.
- Subtract the annual personal allowance and any eligible spouse or child allowances.
- Apply each progressive tax rate only to the income falling inside that band.
- Divide the annual tax by twelve to estimate the monthly withholding.
Annual allowances used by Salary Ledger
| Allowance | Annual amount |
|---|---|
| Employee | 450,000,000 LBP |
| Eligible non-working spouse | 225,000,000 LBP |
| Each eligible child | 45,000,000 LBP |
| Maximum children counted | 5 |
Progressive annual tax bands
A progressive system does not apply the highest rate to the employee’s entire income. Each slice is taxed at its own rate.
| Taxable slice | Rate |
|---|---|
| First 450,000,000 LBP | 4% |
| Next 675,000,000 LBP | 7% |
| Next 1,125,000,000 LBP | 12% |
| Next 2,250,000,000 LBP | 16% |
| Next 4,500,000,000 LBP | 21% |
| Remaining taxable income | 25% |
Worked example: 100,000,000 LBP monthly
For a single employee with no eligible children, Salary Ledger deducts 3,000,000 LBP of employee NSSF each month. After annualization and the personal allowance, taxable annual income is 714,000,000 LBP. The estimated annual tax is 36,480,000 LBP, or 3,040,000 LBP monthly. Estimated net salary is 93,960,000 LBP.
The difference comes from the larger family tax allowance. It is separate from NSSF family benefits paid to an eligible employee.