IRG Algeria 2026: Brackets, Rates and Salary Tax Calculation

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Published on 15/11/2026 at 06:30 · Modified 15/11/2026 at 07:16 · Reading time: 6 min

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Algeria IRG 2026: Progressive Tax on Salaries, Six Brackets, 0–35%

Algeria’s Impôt sur le Revenu Global (IRG) applies to all wage income earned in the country. Employers deduct it monthly at source before net pay is transferred. The structure has six progressive brackets ranging from 0% to 35%, governed by Article 104 of the CIDTA (Code des Impôts Directs et Taxes Assimilées). The 2026 Finance Law left the brackets unchanged from the prior year. A statutory 40% reduction on the computed tax applies to salaried workers, capped at 1,500 DZD per month.

Algeria IRG Brackets 2026

The brackets below are annual figures as published under CIDTA Article 104 and the 2026 Finance Law. Monthly equivalents are derived by dividing each annual threshold by 12 — they are indicative only.

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Annual Taxable Income (DZD)	Monthly Equivalent (DZD)	Marginal Rate
0 – 240,000	0 – 20,000	0%
240,001 – 480,000	20,001 – 40,000	23%
480,001 – 960,000	40,001 – 80,000	27%
960,001 – 1,920,000	80,001 – 160,000	30%
1,920,001 – 3,840,000	160,001 – 320,000	33%
Above 3,840,000	Above 320,000	35%

Indicative brackets; verify each year with the tax authority. Not a substitute for professional advice.

How to Calculate Your IRG

The calculation follows a strict sequence. Shortcuts produce errors. Apply these steps in order.

Step 1 — Determine Gross Taxable Salary

Start with total gross remuneration: base salary plus bonuses and taxable allowances. Exclude legally exempt items such as reimbursed professional expenses properly documented.

Step 2 — Apply the Progressive Brackets

Compute the annual equivalent of monthly gross taxable salary. Apply each bracket’s marginal rate only to the slice of income that falls within it. Sum the results to obtain gross annual IRG.

Step 3 — Apply the 40% Salaried-Worker Reduction

Multiply gross annual IRG by 40% to obtain the reduction amount. This reduction is capped at 1,500 DZD per month, or 18,000 DZD per year. If 40% of computed tax exceeds the cap, the reduction is limited to 1,500 DZD/month. Deduct the lower of the two figures from gross IRG.

Step 4 — Monthly Withholding

Divide the net annual IRG figure by 12. The employer withholds this amount each month and remits it to the tax authority. The employee’s payslip must show the IRG line separately.

Worked Example (Illustrative)

An employee earns 60,000 DZD gross/month (720,000 DZD/year). Bracket calculation: 0% on the first 240,000 DZD = 0 DZD; 23% on 240,000 DZD (240,001–480,000) = 55,200 DZD; 27% on 240,000 DZD (480,001–720,000) = 64,800 DZD. Gross annual IRG = 120,000 DZD. Apply 40% reduction: 48,000 DZD — above the 18,000 DZD annual cap. Net annual IRG = 120,000 − 18,000 = 102,000 DZD. Monthly withholding: 8,500 DZD.

SNMG and the Exemption Threshold

Algeria’s Salaire National Minimum Garanti (SNMG) stands at 24,000 DZD per month gross, as set by executive decree. Workers whose monthly taxable income falls at or below 20,000 DZD — the upper limit of the 0% bracket — owe no IRG. Because the SNMG of 24,000 DZD sits above the 20,000 DZD exemption threshold, a minimum-wage earner is exposed to the 23% marginal rate on the slice between 20,001 and 24,000 DZD. However, the 40% reduction (up to 1,500 DZD/month) typically offsets or significantly reduces the resulting liability for low-income workers. Employers must still run the calculation formally and confirm any zero-liability outcome on the payslip.

Filing and Paying IRG in Algeria

The Direction Générale des Impôts (DGI), operating through the Centre des Impôts de rattachement and the CIDTA framework, administers IRG collection. For salaried workers, the obligation rests almost entirely on the employer.

Employer withholding: The employer deducts IRG from each monthly payslip and must remit the amount to the DGI by the 20th of the following month.
Annual declaration (G50): Employers file a summary payroll declaration each year. Employees receiving only salaried income from a single employer generally have no personal filing obligation — but check with the DGI if you have multiple income sources.
Online payments: The DGI’s Jibayatic portal allows electronic payment and declaration. Adoption has expanded but verify current platform availability directly with the tax authority.
Penalties: Late remittance triggers interest and surcharges under the CIDTA. Rates and caps should be confirmed with the DGI at the time of filing.
VAT context: Algeria applies a standard VAT rate of 19%, relevant for self-employed individuals and businesses but separate from the IRG payroll mechanism.

FAQ

Is the minimum-wage earner in Algeria exempt from IRG?

Not automatically. The SNMG is 24,000 DZD/month gross, which falls partly into the 23% bracket (above 20,000 DZD). After the 40% reduction capped at 1,500 DZD/month, the effective liability is very low but must be computed by the employer. The worker is not legally exempt unless their taxable income is at or below 20,000 DZD/month.

Does the 40% reduction apply to all categories of IRG taxpayers?

Under CIDTA Article 104, the 40% reduction capped at 1,500 DZD/month applies specifically to salaried income. Other IRG income categories — rental, commercial, professional — follow different deduction rules. Confirm the applicable rules with the DGI or a qualified tax adviser.

What happens if an employee has two employers simultaneously?

Each employer withholds IRG independently on the salary it pays, without visibility of the other. This can result in under-withholding on a combined basis. The employee may owe a balancing payment. Individuals in this situation should disclose both sources of income and regularise their position with their local Centre des Impôts.