Honduras Income Tax Calculator 2026
Last updated: January 2026
The Income Tax (ISR) in Honduras for 2026 is calculated with 4 progressive brackets established by the SAR. The first L268,324 annually is exempt. The first bracket (L268,325 to L409,437) is taxed at 15%, the second (L409,438 to L589,587) at 20%, and income over L589,587 at 25%. Taxpayers can deduct medical expenses up to L40,000 annually. Mandatory IHSS (5%) and RAP (1.5%) contributions are deducted before calculation. Honduras uses the commercial year of 360 days for proportional calculations. The IHSS contribution ceiling is L11,903 monthly. ISR is withheld monthly by the employer and reconciled in the annual declaration to the SAR.
FAQ
How much ISR do I pay if I earn L20,000 per month in Honduras?
With a monthly salary of L20,000 (L240,000 annually), IHSS and RAP are first deducted (6.5% = L15,600/year). Net income of L224,400 is below the L268,324 exemption, so you would not pay ISR. ISR starts applying when annual net income exceeds L268,324.
What are the ISR brackets in Honduras 2026?
Honduras ISR has 4 brackets: up to L268,324 is exempt, L268,325-L409,437 at 15%, L409,438-L589,587 at 20%, and over L589,587 at 25%. This progressive system means the effective rate is always lower than the marginal rate on the highest bracket.
What deductions can I claim on ISR in Honduras?
Honduras allows deducting: IHSS contributions (5%), RAP contributions (1.5%), and medical expenses up to L40,000 annually. Professional educational expenses may also be deductible. These deductions reduce your taxable income before applying the progressive brackets.
How is ISR withheld monthly in Honduras?
The employer calculates the projected annual ISR based on the monthly salary, applies deductions and exemptions, and divides by 12 for the monthly withholding. This amount is reported and paid to the SAR monthly. At year-end, a reconciliation determines if additional tax is owed or a refund is due.
What income is exempt from ISR in Honduras?
ISR-exempt income in Honduras includes: the thirteenth month (aguinaldo), the fourteenth month (décimo cuarto), severance pay (up to legal limits), vacation pay, and disability benefits from the IHSS. The first L268,324 of annual income is also exempt.