Quick answer
In 2026, Lebanon's main personal relief is the family deduction: LBP 450 million a year per taxpayer, plus LBP 225 million if married and LBP 45 million per dependent child, up to LBP 900 million. The 2024 Budget Law set these amounts. Some employee payments are also tax-free, such as a transport allowance of LBP 450,000 per working day.
Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad
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Find my savings →You earn a salary or freelance income in Lebanon and want to pay what you owe, not more. Lebanon has no long list of deductions, but the few reliefs it has were multiplied after the currency collapse. After reading, you will know which ones apply to you in 2026, how to claim them and what they are worth.
Lebanon personal deductions and benefits in 2026: the key figures
| Item | 2026 rule | Legal basis |
|---|---|---|
| Family deduction (personal allowance) | LBP 450 million, plus LBP 225 million if married and LBP 45 million per dependent child; LBP 900 million at most | Arts. 48–49, 2024 Budget Law (Law No. 324) |
| Transport allowance paid by a private employer | Tax-free up to LBP 450,000 per working day | Decree No. 12966 of 15 February 2024 |
| Schooling allowance from the employer | Tax-free up to LBP 6 million a year in total, maximum three children | Income Tax Law (employment income rules) |
| Expense reimbursements and representation allowances | Deductible below 10% of managerial staff's basic salaries | Income Tax Law (employment income rules) |
| End-of-service indemnity | Exempt when paid under the applicable laws | Income Tax Law |
| Pensions | Taxed at half the normal salary rates | Income Tax Law, Chapter II |
| Salary tax rates | 2% up to LBP 360 million a year, rising in steps to 25% above LBP 13.5 billion | Art. 47, 2024 Budget Law |
| Dividends and other movable capital income | Flat 10% withheld, no personal deductions | Income Tax Law, Chapter III |
What changed for 2026
- Family deductions and brackets stay at their 2024 level. The 2024 Budget Law raised the deductions to LBP 450–900 million, from LBP 37.5–62.5 million. The Ministry's 2026 citizen budget lists no income tax rate or deduction change for 2026.
- The severance exemption window has closed. Ministry of Finance Decision No. 1311/1 exempted termination and severance payments made between 15 February 2024 and 31 December 2025 (PwC, secondary). Payments in 2026 fall back on the ordinary rules.
- Higher penalties. The 2026 Budget Law, approved on 29 January 2026, multiplies the lump-sum and minimum penalties of the Tax Procedures Law by 25. Wrong claims cost more.
Is this guide for you?
Read on if you…
- are employed or self-employed in Lebanon and want to check your salary or profit tax;
- are married or have children and want the higher family deduction;
- receive allowances, a pension or end-of-service pay from a Lebanese employer.
Probably not your case if you…
- live abroad and only receive Lebanese dividends or interest, which are taxed at source;
- run a company and need the corporate tax rules rather than personal reliefs.
What personal deductions exist in Lebanon?
Lebanon has no single income tax return that adds everything up. The Income Tax Law taxes each income type under its own chapter. Chapter I covers business and professional profits. Chapter II covers salaries, wages and pensions. Chapter III covers movable capital income, meaning dividends, interest and similar investment income.
Inside Chapters I and II, the main personal relief is the family deduction (al-tanzil al-a'ili), under arts. 31 and 57 of the Income Tax Law and the Ministry's Instruction No. 136 of 12 January 2011. It is a fixed amount set by law. You subtract it from taxable income before the progressive rates apply. You need no receipts.
Family deduction in 2026
Articles 48 and 49 of the 2024 Budget Law reset the amounts, as the Ministry's Citizen Budget 2024 sets out:
| Your situation | Annual deduction in 2026 |
|---|---|
| Each taxpayer | LBP 450 million |
| Married | + LBP 225 million |
| Each dependent child (conditions apply) | + LBP 45 million |
| Maximum | LBP 900 million |
| Taxpayer on the lump-sum method | Same as a married person with no children (LBP 675 million) |
| Hourly worker paid by the day | LBP 1.5 million per day |
The old range was LBP 37.5 million to LBP 62.5 million (PwC, secondary). Here's the catch: conditions apply to the child supplement, so give payroll your documents rather than assuming.
What is not deductible
There are no itemised personal deductions for employees. Mortgage interest, health insurance premiums, medical bills, school fees you pay yourself and private donations do not reduce your salary tax. If a foreign checklist lists them, they do not apply here.
Self-employed people taxed on actual profits are different. They deduct genuine business costs first, then the family deduction. See business expenses in Lebanon.
Which employee benefits are tax-free in Lebanon?
Most cash and in-kind benefits are taxable salary. IDAL's employment section covers the labour side. Salaries, bonuses, allowances, annuities, pensions and benefits in kind are all in the base. A short list of items is excluded or deductible in 2026.
| Benefit | Tax treatment in 2026 | Limit |
|---|---|---|
| Transport allowance (private sector) | Not taxed | LBP 450,000 per working day since 15 February 2024 |
| Schooling allowance | Not taxed | LBP 6 million a year in total, maximum three children |
| Expense reimbursements, representation allowances | Deductible | Below 10% of managerial staff's basic salaries |
| Payments to pension schemes | Deductible | Within the legal rules |
| Scholarships, birth, marriage and death grants | Not taxed | Must be granted to all staff and approved by the Ministry of Labour |
| End-of-service indemnity | Exempt | When paid under the applicable laws |
Benefits above these limits are taxable salary. Company cars, housing and bonuses go through payroll at your marginal rate.
Social security benefits are a separate track
The National Social Security Fund (NSSF, Caisse nationale de sécurité sociale) pays family benefits that are not tax deductions. Since 1 July 2025, NSSF Memorandum No. 793 set them at LBP 1,200,000 for a spouse and LBP 660,000 per child, up to five children (PwC, secondary).
You pay 3% of salary for the NSSF medical scheme, on a monthly base capped at LBP 120 million since August 2025 (same source). Your employer pays more on top. Check the amounts on your payslip.
How much do deductions really save you?
Good news: in a progressive system, each LBP of deduction saves tax at your top rate. Salary tax runs from 2% to 25% under art. 47 of the 2024 Budget Law. Business profits of sole traders run from 4% to 25%. The Investment Development Authority of Lebanon (IDAL) lists the flat taxes on investment income.
| Income type | Rate in 2026 | Family deduction usable? |
|---|---|---|
| Salary | 2% up to LBP 360 million, 25% above LBP 13.5 billion | Yes |
| Sole trader and general partnership profits | 4% up to LBP 540 million, 25% above LBP 13.5 billion | Yes |
| Pension | Half the salary rates | Check with payroll |
| Dividends and other movable capital income | 10% withheld | No |
Flat taxes on interest and dividends allow no personal deductions at all. Investment rules are covered in capital gains tax in Lebanon.
Pensions: half rates
Retirement pensions and similar benefits are taxed at half the normal salary rates (PwC, secondary). A foreign pension raises treaty questions, so check which state the treaty gives the taxing right to.
Do non-residents and newcomers get deductions?
Newcomers who work for a Lebanese employer go through the same payroll as nationals. Your status and start date matter, so read obtaining tax residency in Lebanon first.
Non-residents paid by Lebanese clients work differently. Under art. 54 of the 2024 Budget Law, the client withholds 17% on half of a service fee, so 8.5%, and 3.4% on other receipts (Citizen Budget 2024). No family deduction applies to that withholding.
Lebanon has no special expat regime that adds deductions. See tax incentives for expats and digital nomads in Lebanon. Comparing with the Gulf? See personal tax deductions and benefits in the United Arab Emirates and in Saudi Arabia.
How do you claim the family deduction?
- Declare your family status to your employer. Give marriage and birth certificates, plus proof for any child who still qualifies as a dependant.
- Update it when things change. A marriage, a birth or a child ceasing to be dependent changes your amount.
- Check the payroll declarations. Employers file quarterly within 15 days after the quarter ends and annually by 28 February.
- Self-employed? File by 1 April of the following year on actual profits, or by 1 February on the lump-sum method.
- Keep the documents. The Ministry of Finance can ask for them in an audit.
Example – Rania, 41, marketing manager in Beirut
Rania earns LBP 2.4 billion a year. She is married, her husband has no taxable income, and they have three dependent children. Deduction: 450 + 225 + 3 × 45 = LBP 810 million. Taxable salary: 2,400 − 810 = LBP 1,590 million. Tax: 2% × 360 + 4% × 540 + 7% × 690 = 7.2 + 21.6 + 48.3 = LBP 77.1 million. Without the deduction, she would pay LBP 157.8 million. Saving: LBP 80.7 million a year. Her transport allowance, 220 days × LBP 450,000 = LBP 99 million, stays tax-free on top.
Rania's family status cut her salary tax in half. Is yours on file?
We check which Lebanese deductions and tax-free allowances you are entitled to in 2026.
Find my savings →Common mistakes (and what they cost)
- Not updating your family status with payroll → you lose LBP 225 million for a spouse and LBP 45 million per child, taxed at your marginal rate up to 25%.
- Claiming a child who no longer qualifies → reassessment of the employer's payroll tax, plus penalties multiplied by 25 since 2026.
- Paying transport above LBP 450,000 a day as "tax-free" → the excess is salary; the employer is reassessed and claws it back.
- Assuming the 2024–2025 severance exemption still applies → it covered payments up to 31 December 2025 only.
- Using pre-2024 deduction amounts → returns based on LBP 37.5–62.5 million overstate your tax.
Frequently asked questions
What is the family deduction in Lebanon in 2026?
It is a fixed annual amount you subtract from salary or business profits before tax. Since the 2024 Budget Law, each taxpayer gets LBP 450 million, plus LBP 225 million if married and LBP 45 million per dependent child, up to LBP 900 million. Your employer applies it through payroll once you declare your family status with supporting documents.
Can I deduct mortgage interest or medical costs in Lebanon?
No. Lebanon has no itemised personal deductions for employees. Mortgage interest, health insurance, medical bills, school fees you pay yourself and donations do not reduce salary tax. Your reliefs are the family deduction and specific tax-free allowances. Self-employed people on actual profits can deduct genuine business expenses, which is a separate rule.
Is the transport allowance taxable in Lebanon?
Not up to the official amount. Since 15 February 2024, Decree No. 12966 set the private-sector transport allowance at LBP 450,000 per working day, up from LBP 250,000. Paid within that limit, it is excluded from taxable salary. Anything your employer pays above it is treated as ordinary salary and taxed at your marginal rate.
How are pensions taxed in Lebanon?
Pensions and similar retirement benefits are taxed at half the normal salary rates, under the salary chapter of the Income Tax Law. With the 2024 brackets, that means 1% on the first LBP 360 million and 12.5% at the top. If you receive a foreign pension in Lebanon, check the treaty with the paying country, because it decides which state may tax it.
Is end-of-service indemnity taxed in Lebanon?
End-of-service indemnities paid under the applicable laws are excluded from taxable income. Separately, Decision No. 1311/1 exempted termination and severance payments made between 15 February 2024 and 31 December 2025. For 2026 payments, that temporary window no longer applies, so check how each part of your package is classified.
Do expats get special tax deductions in Lebanon?
No. Lebanon has no expat or digital nomad regime with extra deductions in 2026. Resident expats on Lebanese payroll get the same family deduction and allowances as nationals. Non-residents paid by Lebanese clients suffer withholding of 8.5% on services, with no personal deductions.
Related guides
- Lebanon tax landscape overview
- Obtaining tax residency in Lebanon
- Business expenses in Lebanon
- Capital gains tax in Lebanon
- Tax incentives for expats and digital nomads in Lebanon
- Personal tax deductions and benefits in Saudi Arabia
- All country tax guides
Sources
- Tax system – Investment Development Authority of Lebanon (IDAL)
- National Social Security Fund – NSSF Lebanon
- Lebanon, Individual: Deductions – PwC Worldwide Tax Summaries (secondary)
- Lebanon, Individual: Taxes on personal income – PwC Worldwide Tax Summaries (secondary)
- Citizen Budget 2024 (2024 Budget Law tax measures) – Ministry of Finance, Lebanon
- Citizen Budget 2026 (2026 Budget Law tax measures) – Ministry of Finance, Lebanon
This guide is general information, not personalised tax advice. See how we research and review.
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