In addition to its fiscal role, income tax does have its own allocative and distributive role too. A key role of income tax is its distributive one, because of which the first principle of tax is “justice principle”. The responsibility of this paper is investigating the salary taxing on income distribution in Iranian economy. To evaluate the above problem, we have tested the models of,so called ,Engel, Galetoric and Raddatz in Iranian economy. We also have called those modeling system ”EGR” .The findings of our paper shows that the optimum tax rates in Iranian economy for years of third development plan are (respectively), 25.18,28.28,12.5,12.5,12.5.So when we compare the actual tax rates with the optimum ones we observe a considerable gap between potential and actual situation in Iranian tax system.

Keywords: Iranian taxing system, optimum tax rates, EGR model, salary tax, Iranian economy

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