Retención en la Fuente Calculator 2026
Colombia's retención en la fuente (income withholding tax) for 2026 is calculated using the Article 383 table from the Estatuto Tributario, with a UVT value of $52,374 COP per DIAN Resolution 000238 (December 2025). A worker earning $10,000,000 COP/month pays approximately $351,000 in withholding after mandatory deductions (health 4%, pension 4%, Solidarity Fund 1%) and the 25% exempt income. The progressive scale has 7 brackets, from 0% for income up to 95 UVT to 39% for income above 2,300 UVT. Total deductions cannot exceed 40% of gross income.
Frequently Asked Questions
What is retención en la fuente in Colombia?
Retención en la fuente is an advance withholding mechanism for income tax. The employer deducts a percentage from the monthly salary based on the Article 383 table of the Estatuto Tributario. It is not an additional tax but an advance payment on annual income tax. If the total withheld exceeds the actual tax at filing time, the difference is returned as a credit.
What is the UVT value for 2026?
The Unidad de Valor Tributario (UVT) for 2026 is $52,374 Colombian pesos, set by DIAN through Resolution 000238 of December 2025. The UVT is updated annually based on CPI variation. All withholding brackets are expressed in UVT, so the peso thresholds change every year.
At what salary does retención en la fuente apply?
Retención en la fuente applies when the taxable monthly income exceeds 95 UVT, equivalent to $4,975,530 COP in 2026. However, since mandatory deductions are subtracted first (health 4%, pension 4%, 25% exempt income), in practice a gross salary of approximately $7,000,000 may begin generating withholding depending on the worker's additional deductions.
What deductions can be applied to reduce withholding?
Deductions include: mandatory health contributions (4%) and pension (4%), Pension Solidarity Fund (1% to 2% for salaries ≥ 4 SMMLV), economic dependents (10% of income, up to 32 UVT), and the 25% exempt income (up to 240 UVT). Total deductions and exempt income cannot exceed 40% of the employee's gross income.
What is the difference between retención en la fuente and income tax?
Retención en la fuente is a monthly advance withheld by the employer from salary. Income tax (impuesto de renta) is the annual filing where the actual tax is calculated on all yearly income. At filing, withholdings already paid are subtracted from the tax. If you paid more in withholding than owed, you receive a credit; if less, you owe additional payment.
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