5th Category Income Tax Calculator 2026

Fifth category income (renta de quinta categoría) is the tax on income earned through dependent employment. It includes salaries, wages, gratifications, bonuses, and any compensation received from an employer. The employer acts as a withholding agent, deducting the projected tax monthly from the worker's salary according to the progressive rates established by SUNAT.

The Tax Unit (Unidad Impositiva Tributaria - UIT) for 2026 is S/ 5,500 soles, set by Supreme Decree 012-2025-EF of the Ministry of Economy and Finance. The UIT is updated annually and serves as a reference for calculating tax brackets, deductions, and other tax values. In 2025, the UIT was S/ 5,350.

A worker begins paying tax when their annual income (including gratifications) exceeds the 7 UIT automatic deduction, i.e., S/ 38,500 annually in 2026. This is equivalent to a monthly gross salary of approximately S/ 2,750 (considering 14 salaries per year). If personal expenses of up to 3 additional UIT (S/ 16,500) are documented, the effective threshold rises to S/ 55,000 annually or approximately S/ 3,929 monthly.

The employer projects the worker's annual income (monthly salary × remaining months + gratifications + income already received). Then deducts 7 UIT and applies the progressive rates (8%, 14%, 17%, 20%, 30%) on net income. The resulting annual tax is divided by 12 months to determine monthly withholding. This calculation is updated each month per the procedure in Article 40 of the Regulation.

In addition to the automatic 7 UIT deduction, you can deduct up to 3 additional UIT (S/ 16,500 in 2026) for personal expenses supported by electronic receipts. Deductible expenses include: property rental, mortgage loan interest, medical and dental fees, 4th category professional services, and EsSalud contributions for domestic workers. Expenses must be registered in SUNAT's system.