Guatemala Tax Calculator (2026)
Income tax rates and take-home pay for Guatemala
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Guatemala Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| First bracket (0–300,000 GTQ) | GTQ 0 - GTQ 300,000 | 5.0% - 5.0% |
| Second bracket (over 300,000 GTQ) | GTQ 300,000+ | 7.0% |
Personal allowance: GTQ 48,000
Social security contribution
| Bracket | Income Range | Rate |
|---|---|---|
| Social security | GTQ 0+ | 4.8% |
Key Facts
Tax Year
2025
Currency
GTQ
Top Rate
7.0%
Brackets
2 brackets
Allowance
GTQ 48,000
Social Contributions
1 item
Assumptions
- · Progressive income tax brackets apply to taxable income after standard deduction and social security contributions.
- · Social security contribution (4.83%) is deductible from gross income before calculating income tax.
- · Standard deduction of GTQ 48,000 is applied to reduce taxable income.
- · VAT credit is modeled as a maximum of 12% of net income, capped by actual income tax liability and documented VAT paid; for a salary-comparison model, we use a conservative 0% default VAT credit (employee would need to document actual VAT receipts to claim).
- · Life insurance premiums are excluded as they vary by individual choice.
- · Employer social security contributions (12.67%) are excluded as they are employer-only charges.
- · Real estate tax is excluded as it applies to property ownership, not employment income.
- · VAT on consumption is excluded as it is a general consumption tax outside employment income taxation.
Frequently asked questions
How much income tax will I pay in Guatemala?
Guatemala uses a progressive tax system with two brackets: 5% on income up to GTQ 300,000 and 7% on income above that amount. However, you'll first receive a standard deduction of GTQ 48,000, and your social security contribution (4.83%) is deductible from your gross income before tax is calculated, which significantly reduces your taxable income.
What is the social security contribution in Guatemala?
Employees in Guatemala must contribute 4.83% of their gross income to social security. This contribution is deductible from your income before calculating income tax, so it reduces both your take-home pay and your tax liability.
Do I get any tax deductions or allowances in Guatemala?
Yes, you receive a standard deduction of GTQ 48,000 that reduces your taxable income. Additionally, your 4.83% social security contribution is deductible, which provides meaningful tax relief for employees at all income levels.
Is there VAT included in the income tax calculation?
VAT (value-added tax) is a separate consumption tax in Guatemala, not part of income tax. While employees can potentially claim VAT credits if they document actual VAT paid on business-related purchases, the default assumption for salary calculations is no VAT credit unless you have specific documentation to support it.
Will my tax change if I earn more money in Guatemala?
Yes, Guatemala's progressive tax system means your tax rate increases as you earn more. Once your taxable income exceeds GTQ 300,000, the rate jumps from 5% to 7% on the amount above that threshold, so higher earners pay a larger percentage in taxes overall.
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