Payroll reference · 2026
Algeria IRG tax brackets 2026
The income tax bands applied to salaries, the allowance, the smoothing zone and examples worked out to the dinar, based on the schedule published by the DGI, Algeria's tax authority.
Exemption
30,000 DZD
of taxable income a month, no IRG below it
Allowance
40 %
off the tax, between 1,000 and 1,500 DZD a month
Top rate
35 %
on the share of income above 320,000 DZD a month
Minimum wage (SNMG)
24,000 DZD
gross a month for a 40-hour week
Monthly brackets 2026
| Monthly taxable income | Rate |
|---|---|
| Up to 20,000 DZD | 0 % |
| 20,001 to 40,000 DZD | 23 % |
| 40,001 to 80,000 DZD | 27 % |
| 80,001 to 160,000 DZD | 30 % |
| 160,001 to 320,000 DZD | 33 % |
| Above 320,000 DZD | 35 % |
Annual brackets 2026
| Annual taxable income | Rate |
|---|---|
| Up to 240,000 DZD | 0 % |
| 240,001 to 480,000 DZD | 23 % |
| 480,001 to 960,000 DZD | 27 % |
| 960,001 to 1,920,000 DZD | 30 % |
| 1,920,001 to 3,840,000 DZD | 33 % |
| Above 3,840,000 DZD | 35 % |
The legal schedule is annual. For withholding, employers divide each band by 12 and apply the monthly schedule to that month's pay.
Step by step for a gross salary of 50,000 DZD
- Social security (CNAS): 9% of 50,000 DZD, so 4,500 DZD. That leaves 45,500 DZD of taxable income.
- Brackets: each slice of income is taxed at its band's rate, for a total of 6,085 DZD (breakdown in the table).
- Allowance: 40% of the bracket tax comes to 2,434 DZD, kept between 1,000 and 1,500 DZD, so 1,500 DZD.
- IRG withheld: 6,085 − 1,500 = 4,585 DZD. Net pay is 40,915 DZD.
| Band | Amount taxed (DZD) | Rate | Tax (DZD) |
|---|---|---|---|
| Up to 20,000 DZD | 20,000 | 0 % | 0 |
| 20,001 to 40,000 DZD | 20,000 | 23 % | 4,600 |
| 40,001 to 80,000 DZD | 5,500 | 27 % | 1,485 |
Smoothing zone: 30,001 to 35,000 DZD taxable
Just above the exemption threshold, a second allowance stops a small raise from costing more in tax than it adds in pay. In this zone the IRG withheld is:
Employees, up to 35,000 DZD taxable
IRG = (bracket tax − allowance) × 137/51 − 27,925/8
Disabled workers and retirees, up to 42,500 DZD taxable
IRG = (bracket tax − allowance) × 93/61 − 81,213/41
Example: on 32,000 DZD of taxable income, the brackets give 2,760 DZD and the allowance 1,104 DZD. Without smoothing the IRG would be 1,656 DZD; with it, it drops to 958 DZD.
Monthly IRG by taxable income
| Taxable income | Bracket tax | Allowance | IRG, employee | IRG, disabled or retired |
|---|---|---|---|---|
| 30,000 DZD | 2,300 | 0 | 0 | 0 |
| 32,000 DZD | 2,760 | 1,104 | 958 | 544 |
| 35,000 DZD | 3,450 | 1,380 | 2,070 | 1,175 |
| 40,000 DZD | 4,600 | 1,500 | 3,100 | 2,745 |
| 50,000 DZD | 7,300 | 1,500 | 5,800 | 5,800 |
| 80,000 DZD | 15,400 | 1,500 | 13,900 | 13,900 |
| 100,000 DZD | 21,400 | 1,500 | 19,900 | 19,900 |
| 160,000 DZD | 39,400 | 1,500 | 37,900 | 37,900 |
| 320,000 DZD | 92,200 | 1,500 | 90,700 | 90,700 |
Taxable income = gross salary minus the 9% CNAS contribution. Amounts in DZD a month.
Minimum wage and social contributions
The SNMG minimum wage is 24,000 DZD gross a month for a 40-hour week (presidential decree 26-01 of 7 January 2026). At that level taxable income stays below the exemption threshold: no IRG is withheld and net pay is 21,840 DZD.
Employees pay 9% of gross salary to the CNAS, deducted before IRG is worked out. Employers add a 25% employer share and 0.5% for staff welfare, so 25.5% of gross on top.
Frequently asked questions
What are the IRG brackets in 2026?
The monthly schedule has six bands: 0 % (up to 20,000 DZD), 23 % (20,001 to 40,000 DZD), 27 % (40,001 to 80,000 DZD), 30 % (80,001 to 160,000 DZD), 33 % (160,001 to 320,000 DZD), and 35 % (above 320,000 DZD). Each rate only applies to the slice of income inside its band, never to the whole salary.
Who pays no IRG on their salary?
Any employee whose monthly taxable income is 30,000 DZD or less, which covers the minimum wage. Disabled workers and retirees also get a longer smoothing zone, up to 42,500 DZD taxable.
How is the 40% allowance worked out?
The tax is first calculated with the brackets, then 40% is taken off. That reduction never goes below 1,000 DZD or above 1,500 DZD a month: from about 36,400 DZD of taxable income, it is always 1,500 DZD.
Are bonuses and allowances subject to IRG?
Monthly bonuses are part of gross pay and follow the brackets. Bonuses paid on another schedule (annual bonus, back pay) carry a flat 10% withholding. Travel and regional allowances and family benefits are exempt.
Can I download the 2026 IRG brackets as a PDF?
Yes: the “Print or save as PDF” button at the top of the page produces a clean copy of the schedule, tables and formulas included, to keep or share.
Source: DGI, IRG on wages and salaries (art. 104 of the CIDTA), schedule in force in 2026; minimum wage: presidential decree 26-01. An estimate with no official standing: a payslip may differ because of benefits in kind or a collective agreement.
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