Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
697,824 BHD
Social Security
- 280 BHD
Unemployment
- 6,978 BHD
Total tax
- 7,258 BHD
Net pay
* 690,566 BHD
Marginal tax rate
1.0%
Average tax rate
1.0%
99.0%
Net pay
1.0%
Total tax
Total tax
Net pay
The Taxberg
690,566 BHD
Net pay
7,458 BHD
Tax the employer pays
7,258 BHD
Tax you pay
Total tax paid
14,716 BHD
Did you know your employer also pays tax on your salary? It costs the employer 7,458 BHD to pay you 697,824 BHD. In other words, every time you spend 10 BHD of your hard-earned money, 0.21 BHD goes to the government.
Real tax rate
2.1%
So, with you and the employer both paying tax, what used to be a 1% tax rate now rises to 2.1%, meaning your real tax rate is actually 1.1% higher than what it seemed at first.
Summary
If you make 8,373,888 BHD a year living in Bahrain, you will be taxed 87,099 BHD. That means that your net pay will be 8,286,789 BHD per year, or 690,566 BHD per month. Your average tax rate is 1.0% and your marginal tax rate is 1.0%. This marginal tax rate means that your immediate additional income will be taxed at this rate. For instance, an increase of 100 BHD in your salary will be taxed 1 BHD, hence, your net pay will only increase by 99 BHD.
Bonus Example
A 1,000 BHD bonus will generate an extra 990 BHD of net incomes. A 5,000 BHD bonus will generate an extra 4,950 BHD of net incomes.
NOTE* Withholding is calculated based on the tables of Bahrain, income tax. For simplification purposes some variables (such as marital status and others) have been assumed. This document does not represent legal authority and shall be used for approximation purposes only.