Statutory Updates

New Angola Tax Rates – Effective 1st January 2026

Effective 1 January 2026, Angola revised its Personal Income Tax (Imposto sobre o Rendimento do Trabalho – IRT) framework, primarily to ease the tax burden on low-income earners while maintaining a progressive structure for higher income levels...

Workpay

January 13, 2026

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January 13, 2026

8 min read

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New Angola Tax Rates – Effective 1st January 2026

Effective 1 January 2026, Angola revised its Personal Income Tax (Imposto sobre o Rendimento do Trabalho – IRT) framework, primarily to ease the tax burden on low-income earners while maintaining a progressive structure for higher income levels. The most significant change is the increase of the monthly tax-exempt threshold to AOA 150,000, meaning employment income up to this amount is fully exempt from IRT.

Monthly Personal Income Tax Brackets (2026)

From (AOA)	To (AOA)	Tax Rate (Cumulative)
0	150,000	0% (Exempt)
150,001	200,000	12,500 + 16% of excess over 150,000
200,001	300,000	31,500 + 18% of excess over 200,000
300,001	500,000	49,250 + 19% of excess over 300,000
500,001	1,000,000	87,250 + 20% of excess over 500,000
1,000,001	1,500,000	187,250 + 21% of excess over 1,000,000
1,500,001	2,000,000	292,250 + 22% of excess over 1,500,000
2,000,001	2,500,000	402,250 + 23% of excess over 2,000,000
2,500,001	5,000,000	517,250 + 24% of excess over 2,500,000
5,000,001	10,000,000	1,117,250 + 24.5% of excess over 5,000,000
Above 10,000,000	No upper limit	2,342,250 + 25% of excess over 10,000,000

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Angola 2026 Tax Reforms FAQs

Q: When do the new tax rates take effect?A: The revised Personal Income Tax framework becomes effective on January 1, 2026.

Q: What is the primary goal of this tax update?A: The reforms are designed primarily to ease the tax burden on low-income earners while maintaining a progressive tax structure for higher income levels.

Q: What is the "IRT"?A: IRT stands for Imposto sobre o Rendimento do Trabalho, which is the Personal Income Tax in Angola.

Q: What is the new tax-free income threshold?A: The monthly tax-exempt threshold has been increased to AOA 150,000. Employment income up to this amount is fully exempt from IRT (0% tax).

Q: What is the highest tax rate under the new system?A: The highest marginal tax rate is 25%. This applies to the portion of monthly income that exceeds AOA 10,000,000.

Q: How does the progressive tax structure work for income above AOA 150,000?A: Income above the exempt threshold is taxed at progressive rates starting at roughly 16% (calculated on the excess) plus a fixed amount, increasing up to the top rate of 25% for the highest earners.

Q: Are there specific fixed amounts added to the tax calculation?A: Yes. For every bracket above the exempt threshold, the tax is calculated as a fixed amount (e.g., AOA 12,500 for the first taxable bracket) plus a percentage of the excess income over the bracket floor.

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