Finance Minister Sahil Babayev stated today during a discussion of the draft law "On the State Budget for 2026" in the Milli Majlis Committee on Economic Policy, Industry, and Entrepreneurship that few countries in the country have income taxes as low as Azerbaijan.
According to Yeniavaz.com, the income tax withheld from public sector employee salaries in Azerbaijan is 14%.
This is lower than the same rate in neighboring countries – Armenia and Georgia. However, since the average monthly salary in Armenia and Georgia is higher than in Azerbaijan, it should also be noted that the population of these countries has more income.
According to the latest official data, the average monthly salary in the public sector in Azerbaijan is 1,063.6 manat (US$627). Income tax is withheld from this amount at a rate of 14% – 148.9 manat (US$88). There is also social security (3%), unemployment insurance (0.5%), and mandatory health insurance (2%), which together amount to 58.6 manat (US$34.5). After deducting 207.5 manat (US$122), the employee receives 856.1 manat (approximately US$505).
The average monthly salary in Armenia is 294,983 drams (US$740). Employees' salaries are subject to income tax at 20%, pension fund contributions at 5%, and military insurance contributions of 5,500 drams (US$14). The total deductions amount to 79,246 drams (US$200), leaving the employee's net salary at 215,737 drams (US$540). The average monthly salary in Georgia is 2,212 lari (US$805). Employees' salaries are subject to income tax of 20% and pension fund contributions of 2%. After deducting 486.6 lari (US$177), a citizen is left with 1,725 lari (US$628).
As the data presented shows, although the income tax rate in Azerbaijan is lower than in Armenia and Georgia, the funds remaining at the disposal of employees in Azerbaijan are lower than in these countries.
Average monthly salaries and deductions in Armenia, Azerbaijan, and Georgia (August 2025):
Elnur Ali
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