Guatemala Income Tax Calculator 2026
Last updated: January 2026
The Income Tax (ISR) for salaried workers in Guatemala in 2026 is calculated under the employment income regime with two progressive brackets, according to SAT tax tables. The first Q48,000 annually is exempt. Taxable income up to Q300,000 is taxed at 5%, and the excess over Q300,000 is taxed at 7%. Guatemala has one of the lowest marginal rates in Latin America. Additionally, taxpayers can deduct up to Q12,000 annually through VAT invoice credits (planilla del IVA). IGSS contributions (4.83%) are deducted before calculating taxable income. ISR is withheld monthly by the employer and declared annually to the SAT.
FAQ
How much ISR do I pay if I earn Q10,000 per month in Guatemala?
With a monthly salary of Q10,000 in Guatemala (Q120,000 annually), IGSS contributions are first deducted (4.83% = Q5,796/year). The taxable income after the Q48,000 exemption is approximately Q66,204. At the 5% rate, annual ISR would be about Q3,310, or approximately Q276 monthly before applying the VAT credit.
What is the VAT invoice credit in Guatemala?
Salaried taxpayers in Guatemala can deduct up to Q12,000 annually from ISR by submitting VAT invoices (planilla del IVA). This credit directly reduces the tax owed. To benefit, you must request invoices on your personal purchases and report them to the SAT through the Special Invoices tool.
What are the ISR brackets for salaried workers in Guatemala 2026?
ISR for employment income in Guatemala has two brackets: the first Q48,000 annually is exempt, from Q48,001 to Q300,000 the rate is 5%, and the excess over Q300,000 is taxed at 7%. It is a progressive system where the effective rate is always lower than the marginal rate.
How is ISR withheld monthly in Guatemala?
The employer calculates the employee's projected annual ISR, subtracts the estimated VAT credit, and divides the result by the remaining months in the year. This monthly withholding is reported to the SAT. At the end of the fiscal year, a reconciliation is made and the taxpayer can request a refund if they overpaid.
Who is exempt from ISR in Guatemala?
ISR-exempt in Guatemala are workers earning less than Q48,000 annually (approximately Q4,000 monthly). Also exempt: aguinaldo (Christmas bonus), Bono 14, severance pay, state retirement contributions, and non-waivable labor benefits under the Labor Code.