Guatemala Tax Calculator (2026)
Income tax rates and take-home pay for Guatemala
Guatemala Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| First Bracket | GTQ 0 - GTQ 300,000 | 5.0% |
| Second Bracket | GTQ 300,000+ | 7.0% |
Personal allowance: GTQ 48,000
Instituto Guatemalteco de Seguridad Social (IGSS)
| Bracket | Income Range | Rate |
|---|---|---|
| Individual Contribution | 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
- · Standard deduction of GTQ 48,000 applied to all resident individuals.
- · Social security (IGSS) contributions are deductible from taxable income.
- · Variable VAT tax credit (up to 12% of net income) excluded as it depends on documented personal expenditure.
- · Life insurance and donations excluded as they are not standard for all workers.
Frequently asked questions
How much income tax do I pay in Guatemala?
Guatemala has a two-bracket income tax system. You pay 5% on income up to GTQ 300,000, and 7% on income above that threshold. However, you can deduct a standard allowance of GTQ 48,000 from your gross income before calculating tax, which significantly reduces your taxable income.
What is IGSS and do I have to pay it?
IGSS (Instituto Guatemalteco de Seguridad Social) is Guatemala's social security system, and as an employee you must contribute 4.83% of your gross income. The good news is that IGSS contributions are deductible from your taxable income, which lowers the amount of income tax you owe.
What's the take-home pay for a remote worker earning GTQ 500,000 per year?
Starting with GTQ 500,000, you'd first deduct IGSS contributions (4.83% = GTQ 24,150) and the standard allowance (GTQ 48,000), leaving GTQ 427,850 in taxable income. You'd then owe 5% on the first GTQ 300,000 (GTQ 15,000) and 7% on the remaining GTQ 127,850 (GTQ 8,949.50), for a total tax of GTQ 23,949.50 and take-home of approximately GTQ 452,100.
Do I need to be a resident to pay income tax in Guatemala?
Yes, Guatemala's income tax system applies to resident individuals. The tax data assumes you are a resident individual, and residency status determines your tax obligations in the country.
Are there any other taxes or deductions I should know about?
The main deductions available are the GTQ 48,000 standard allowance and your IGSS social security contributions. Other potential deductions like VAT tax credits (up to 12% of net income), life insurance, and donations exist but depend on individual circumstances and documented expenses, so they're not factored into the standard calculator.
Does Guatemala have state or regional income taxes?
No, Guatemala does not have subnational or regional income taxes. The income tax rates and brackets are uniform across the entire country, so your tax obligation is the same regardless of which region you live in.
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