Chile Income Tax Calculator 2026
Chile's Impuesto Único de Segunda Categoría taxes employment income with progressive rates from 0% to 40% based on UTM brackets. In April 2026, with a UTM of CLP $67,698, income up to 13.5 UTM (CLP $913,923) is exempt. The SII publishes rebate factors that simplify the monthly calculation, per Art. 43 N°1 of the Income Tax Law.
Frequently Asked Questions
What is the Impuesto Único de Segunda Categoría?
The Impuesto Único de Segunda Categoría is Chile's monthly income tax on employment income. It applies progressive rates from 0% to 40% on gross taxable salary (after pension and health deductions). It's called 'único' (unique/single) because it's paid once at the time of receiving the income, and the employer withholds it directly from the paycheck. It is regulated by Art. 43 N°1 of Chile's Income Tax Law.
What is the UTM value in 2026?
The Unidad Tributaria Mensual (UTM) changes every month based on the CPI published by INE. In January 2026 it was CLP $67,294, in February CLP $67,429, in March CLP $67,560, and in April CLP $67,698. Remaining months are published monthly by the SII. The UTM is crucial because tax brackets are expressed in UTM, meaning the CLP thresholds shift each month.
At what salary do you start paying Impuesto Único?
In April 2026, with a UTM of CLP $67,698, income up to 13.5 UTM is exempt from tax. This equals a gross taxable salary of approximately CLP $913,923 per month. If your taxable salary (after AFP, health, and unemployment insurance deductions) is below this amount, you pay no Impuesto Único. This threshold changes each month with the UTM.
How does the SII rebate factor work?
The rebate factor is a number published by the SII for each tax bracket that simplifies the calculation. Instead of computing progressive tax bracket by bracket, you use the formula: Tax = (Income × Bracket Rate) − (Factor × UTM). The factor absorbs the cumulative effect of lower brackets, giving exactly the same result as the progressive calculation. For example, the 4% bracket has a factor of 0.54, and the 40% bracket has a factor of 38.74.
Does the UTM affect how much tax I pay each month?
Yes. Since tax brackets are expressed in UTM and the UTM adjusts monthly for inflation (CPI), the exact tax amount can vary month to month even if your salary stays the same. When the UTM rises (due to inflation), the CLP thresholds also rise, which generally slightly reduces the tax. This effect is automatic and the employer must use the current month's UTM for the withholding calculation.