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 do I pay in Guatemala if I'm a remote worker?
Guatemala uses a progressive income tax system with two brackets: 5% on taxable income up to GTQ 300,000 and 7% on income above that threshold. Before calculating tax, you can deduct a standard allowance of GTQ 48,000 and your social security contribution (4.83% of gross income), which significantly reduces your taxable income.
What is the social security contribution rate in Guatemala?
As an employee in Guatemala, you contribute 4.83% of your gross income to social security. This contribution is deductible from your gross income before income tax is calculated, so it effectively reduces the amount of income subject to the progressive tax brackets.
Do I get a standard deduction in Guatemala?
Yes, Guatemala provides a standard deduction of GTQ 48,000 that reduces your taxable income. This deduction is applied after your social security contributions are subtracted, helping to lower the amount of income subject to the 5% and 7% tax rates.
What's the difference between the two income tax brackets in Guatemala?
Guatemala has two income tax brackets: the first bracket applies a flat 5% rate on taxable income from GTQ 0 to GTQ 300,000, and the second bracket applies 7% on any taxable income above GTQ 300,000. The progressive structure means higher earners pay a slightly higher rate only on income exceeding the GTQ 300,000 threshold.
Are there any other taxes I should know about as an employee in Guatemala?
As an employee, your main tax obligations are income tax and the 4.83% social security contribution. The tax calculator excludes employer-side contributions, VAT on consumption, and property taxes, as these either fall on employers or apply to different types of income and assets rather than employment wages.
Can I claim a VAT credit on my income tax in Guatemala?
VAT credits are theoretically available in Guatemala, but they require documentation of actual VAT paid and are capped by your income tax liability. For salary comparison purposes, the calculator uses a conservative 0% default VAT credit unless you have documented receipts to support a claim.
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