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Article / Middle East

Jordan Tax Rate Updates: Key Insights on Tax and Social Security

Nena Petrovic Updated 1 July 2026 3 min read
Stay informed on Jordan tax rate updates for 2024, including the 16% VAT rate, 21.75% social security rate, income tax rate, and PPIT rate. Click here.

Payroll / Personal Income Tax Rates:

Taxable Income * Rate
First JOD 5,000 5%
Second JOD 5,000 10%
Third JOD 5,000 15%
Fourth JOD 5,000 20%
Over JOD 20,000 up JOD to 1,000,000 25%

In addition, please note that native people (individuals/employees) will be entitled to personal exemptions as follows:

  • Personal exemption of JOD 9,000. (Provided that he stays in Jordan for more than 183 days during the calendar year whether continuous or interrupted.)
  • Family Exemption of JOD 9,000. (Provided that his family stays in Jordan for more than 183 days during the calendar year whether continuous or interrupted.)
  • Additional Personal and family exemption of JOD 3,000 on Medical Expenses, University Education Expenses and Interests paid on Housing Loans, Housing rent, technical services, engineering services, legal services provided that supporting documents and invoices are available and to be granted on a case by case basis after reviewing the related supporting documents by the Income Tax Department.
  • Exemption in the amount of JOD 2,500 in relation to the monthly Retirement Benefits.

Withholding Taxes

  • Withholding tax of non-resident services providers remains at 10%
  • Certain service providers are subject to 5% retention. This includes doctors, lawyers, engineers, certified public accountants, experts, consultants, insurance agents, custom clearing agents, arbitrators, speculators, agents and brokers for commission, financial brokers and freight forwarders. Any other persons will be determined according to the related regulations which will be issued for this purpose by the Minister of Finance.
  • Withholding tax on in cash and in-kind prizes and Jordanian Lottery in excess of JOD 1000 per each prize is 15%.
  • In-kind and in-cash dividends are not subject to withholding tax whether paid to a resident to non-resident party.

Social Security Updates:

Jordan’s new social security rate in 2024 remains at 21.75% – made up of 14.25% employer contribution and 7.5% employee contribution and has been in place since 2017.

Year Employee Employer
2019 7.5% 14.25%
2020 7.5% 14.25%
2021 7.5% 14.25%
2022 7.5% 14.25%
2023 7.5% 14.25%

Conclusion

As we navigate through the evolving landscape of tax and social security regulations in Jordan, staying ahead of these changes is paramount for ensuring compliance and optimising your business operations. The updates for 2024 bring about both challenges and opportunities. By understanding and adapting to these changes, your business can continue to thrive in Jordan’s dynamic market. Remember, TopSource is here to support you every step of the way. Whether it’s through our advanced Employee Cost Calculator or our tailored advisory services, we’re committed to helping you manage your payroll and tax obligations efficiently and effectively.

Want to remove the headache of ever-changing Jordan payroll and HR legislation? Get in touch with one of our consultants to find out more about Topsource’s fully managed payroll and EOR services.

Frequently Asked Questions about Jordan Tax Rate Updates

Jordan applies personal income tax in progressive bands. The first JOD 5,000 of taxable income is taxed at 5%, the second JOD 5,000 at 10%, the third JOD 5,000 at 15%, and the fourth JOD 5,000 at 20%. Income over JOD 20,000 up to JOD 1,000,000 is taxed at 25%, with the top personal income tax rate reaching 30%.

Jordan’s social security rate in 2024 is 21.75%, made up of a 14.25% employer contribution and a 7.5% employee contribution. This rate has remained in place since 2017. The split stayed identical across 2019, 2020, 2021, 2022 and 2023, with employees contributing 7.5% and employers contributing 14.25% throughout that period.

Native individuals in Jordan can claim a JOD 9,000 personal exemption and a JOD 9,000 family exemption, each requiring more than 183 days of residence in the calendar year. An additional JOD 3,000 exemption covers medical, university education, housing loan interest, rent, technical, engineering and legal services with documentation. Monthly retirement benefits receive a JOD 2,500 exemption, granted case by case after review.

In Jordan, withholding tax on non-resident service providers remains at 10%. A 5% retention applies to certain providers, including doctors, lawyers, engineers, certified public accountants, experts, consultants, insurance agents, custom clearing agents, arbitrators, agents and brokers for commission, financial brokers and freight forwarders. Cash and in-kind prizes and Jordanian Lottery winnings above JOD 1,000 per prize are taxed at 15%.

Jordan’s standard VAT rate is 16% and its corporate income tax rate is 20%. These sit alongside a social security rate of 21.75% and a personal income tax rate that reaches 30%, applied in progressive bands. Staying informed about these 2024 figures is important for businesses and professionals operating within or in conjunction with the Jordanian market to ensure compliance.

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